Wheelock Street Capital and The Seyon Group have formed a joint venture to acquire industrial real estate assets in Northeast markets. The jv acquired three properties totaling $32m located along the Route 128 corridor in the Boston area. “As we work to capitalize on shrinking supply dynamics in certain submarkets, it’s a huge benefit to us as operators to have our partner close by,” said , managing partner at Seyon. “It allows for us to see the same things in real time and makes the education on each deal much more efficient.”
The jv was formed to take advantage of light manufacturing and flex space users getting priced out of downtown locations, and e-commerce/distribution users needing to be close to their end customers. “We’ve known the Wheelock team for a number of years, and have transacted with them in the past,” said Iglowski. “Ownership in the Boston industrial market is very fragmented, so it’s advantageous for us to show up at the table with a well-capitalized partner like Wheelock.”
The recently formed Seyon Group pursues investment opportunities ranging from ground-up warehouse development to existing infill light-industrial assets, targeting a select group of markets. Wheelock is targeting an allocation of $100m from its current investment vehicle, Wheelock Street Real Estate Fund V, for equity investments in the industrial sector.
Recent off-market acquisitions by the jv include 26 Dartmouth Street in Westwood, Massachusett, a 200,000 square foot industrial building located adjacent to Westwood’s University Station, a mixed-use property anchored by Wegman’s and Target. “The building is very unique for a number of reasons: it sits on a very valuable piece of land adjacent to Route 128, it benefits from public transit being nearby, it’s big – which means it can accommodate a very large universe of potential users, and it’s a headquarters location for a tenant that’s very ingrained in the space,” said Iglowski. “We plan to stabilize the rent roll with a long-term lease.”
The firms also acquired a portfolio of light industrial buildings on Shawmut Road in Canton, Massachusetts that total more than 100,000 square feet. “These single-story industrial assets have good credit from a rent roll perspective, substantial lease term, and a stable cash flow over the long term,” noted Iglowski. “The tenants are from a broad mix of industries, life sciences to pharma to manufacturing to a brewery, which is exactly what we expect to see given the combination of geography and physical functionality.”