Savills Studley National Retail Services Group represented the sellers of two high-profile, single-tenant NNN assets, both occupied by Home Depot, for a combined total square footage of approximately 250,000 square feet. Kyle Miller and Bill Bauman, who are based out of Savills Studley’s Los Angeles office, represented the sellers in both transactions.
In the first transaction, the 126,480-square-foot building located at 615 Arsenal Street in Watertown, Massachusetts was sold by Eastern Real Estate, a Boston-based firm with a national investment, development and asset management portfolio, to an affiliate of Inland Real Estate Acquisitions, Inc.; the Home Depot location opened in 2001 and has 17 years remaining on its primary lease term.
“The seller elected to leverage the current market demand for trophy, infill and single-tenant NNN assets in order to unlock the capital and re-deploy it into other projects and investments,” said Miller. “With such high demand for retail coupled with institutional investors being underweighted in this asset class, it’s an ideal time to be a seller of core assets.” Savills Studley has completed more than $150 million in transactions on behalf of this client in the last two years.
The seller acquired the building in 2000 as part of the Anne & Hope department store portfolio that included more than one million square feet of retail space. The asset is part of The Arsenal Mall in Watertown, located nearby Harvard, MIT and downtown Boston.
“Watertown is continuing to mature as a hotspot for the expanding tech and biotech sectors seeking creative live/work environments outside of the traditional urban office markets – including the drum-tight Cambridge submarkets,” said Mark Stewart, senior vice president and head of Savills Studley’s Boston office, which provides commercial real estate services to clients throughout New England.
The second transaction, a 119,000-square-foot building located at 1590 Canyon Del Rey Boulevard in Seaside, California (Monterey County), was sold by New York Life Real Estate Investors to Hovercraft, LLC, a private real estate partnership. Home Depot assumed the lease in the early 2000s and immediately exercised all outstanding options, extending its term through 2032.