W. P. Carey (WPC) Buys Bose Office Facility for $47M

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W. P. Carey Inc. (WPC) has acquired Bose office facility, located in Westborough Technology Park outside Boston, for around $47 million from Columbia Property Trust. The acquisition reflects this real estate investment trust’s (:REIT) focus on adding high-quality assets to its portfolio.

Positioned in the northwest quadrant of the U.S. I-495/Route 9 interchange, this Class A/B office building spans over 250,813 square foot. Leased to Bose Corporation for 11 years, this property is situated 8 miles away from Bose headquarters in Framingham. The property enjoys good accessibility to Boston as well as Northeastern and Southeastern Massachusetts.

We are encouraged with this addition of a long term net-leased Boston area property to W. P. Carey. The property, apart from bringing in a high-quality tenant, offers solid prospects for generating long-period income. Bose has also made decent investments in this property that indicates its intention to remain attached with this property.

As a matter of fact, with the core Boston submarket becoming quite saturated recently, tenants are seeking to lease premium properties at affordable prices in the suburban Route 128 and 495 locations. Consequently, such rising demand has led to an increasing level of stability in the 495 West/Mass Pike West submarket and thus, properties are less vacant than before. The submarket also boasts of several high-technology space and financial companies, signifying decent prospects going forward.

W. P. Carey, which has reported earnings surprise of 15.2% in the last quarter, currently sports a Zacks Rank #1 (Strong Buy). Investors interested in REITs may also consider stocks like Pebblebrook Hotel Trust (PEB), DCT Industrial Trust Inc. (DCT) and Extra Space Storage Inc. (EXR). While Pebblebrook carries a Zacks Rank #1, DCT Industrial and Extra Space hold a Zacks Rank #2 (Buy).

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