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September 16, 2014

Campanelli latest to get in on Westborough office market

Courtesy of Transwestern | RBJ Commercial real estate firm Campanelli bought the building at 300 Friberg Pkwy in June and has launched a capital campaign to reposition it for new tenants.

Braintree-based commercial real estate firm Campanelli has purchased the office building at 300 Friberg Pkwy. in Westborough, marking another acquisition of a highly-visible office building in town this year.

Campanelli bought the three-story, 78,455-square-foot building in June and is planning a “significant capital improvement campaign,” according to its leasing agent, Transwestern | RBJ of Boston. The project includes upgrading the building’s lobby and common areas, amenities, façade and landscaping, according to Transwestern.

Vacant building fits Campanelli strategy

Campanelli partner Daniel DeMarco said the company is also considering expanding the now-vacant building. DeMarco said 300 Friberg fits Campanelli’s “value-based acquisition strategy,” which consists of buying properties in promising markets at a relatively low price, and repositioning them to attract new tenants. According to the Worcester County Registry of deeds, Campanelli purchased 300 Friberg for $2.25 million on June 9.

The Friberg purchase marks Campanelli’s reentry into the Westborough market after it sold a property on Walkup Drive several years ago, according to DeMarco. The company owns more than 2.7 million square feet of commercial property in Massachusetts.

“Westborough has a very good master plan. This building sits in the office-designated area of the master plan right off route 495 … we can look at the existing building and use the current zoning to look at expansion scenarios,” DeMarco said, adding that Campanelli can renovate the Friberg property for a variety of tenants, including technology companies and those that require laboratory space.

The Campanelli purchase rounds out a busy season for commercial real estate in Westborough. Other recent sales include One Research Drive, soon to be occupied by Genzyme Corp, along with others others, as well as an office building inside the Westborough Technology Park, which is occupied by Bose.

One Research Dr. a positive indicator

DeMarco noted that Campanelli has owned the building for about eight weeks, and has not yet signed any tenants. But if the recent success of the adjacent office building at One Research Dr. is any indication, the prospects for 300 Friberg are strong. Purchased as a distressed property in February by Marlborough-based Ferris Development while half vacant, One Research is now fully occupied after Cambridge-based Genzyme signed a 7-year lease to house about 500 of its Framingham-based employees.

While Campanelli bought 300 Friberg before the Genzyme lease was announced, “it proves our thesis … that tenants are migrating from the 128 belt because of the value associated with the 495 and Route 9 intersection,” DeMarco said.

DeMarco also believes Westborough and other towns along I-495 are benefitting from the growth of companies in Natick and Framingham, as well as firms located farther east. As is the case with Genzyme, many of those companies aren’t leaving town, but look to more affordable markets when it’s time to expand.

“If companies were contracting, I’m not so sure you would see the growth you see on 495 right now,” DeMarco said.

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