OVERVIEW

295 Union Street consists of two multi-tenant, Class C buildings totaling 87,498 SF, on 16.5 acres in Walpole, MA. Strategically positioned near Interstate 95 and Route 1, the properties are located in a premium industrial submarket just south of the Boston MSA. Purchased off-market as part of its joint-venture with Casco Realty (“Casco”), who presented the deal to Berkeley.

OPPORTUNITY

The property comprises a large outdoor storage lot, which Tesla uses as its last-mile cleaning, detailing, and quality-testing site for its vehicles immediately prior to their delivery. At acquisition, the property was ~16% occupied, and the business plan for the property was to renew Tesla (which was successfully completed in mid-2022), reposition / renovate the back building (which is anticipated to finish in early 2023) and to subsequently lease the improved space. Post Tesla renewal and the successful renewal of the back building, Berkeley’s goal was to pursue a financing process or a sale of the property. Berkeley closed on the Property’s initial loan in January 2023, which fully returned the majority of the equity invested to-date.

REPOSITIONING INITIATIVES EXECUTED

Renovations including new LED lightings to the rear building were completed in 2022. New fire/life safety sprinkler systems and full parking lot pavements are scheduled for completion in the first half of 2023.