WEST WARWICK – A 550,000-square-foot office and warehouse property at 1600 Division Road recently sold for $39 million, according to Colliers International Group Inc., the commercial real estate services firm that arranged the transaction.
The building and the 52 acres of land it stands on were sold by the Beverly, Mass.-based Brookwood Financial, a private equity investment firm that specializes in acquiring and managing commercial real estate, according to Colliers.
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The property, located near the intersection of Interstate 95 and Route 2, was acquired by a Delaware limited liability company called Albany Road 1600 Division LLC, according to the quitclaim deed, a public record of the sale. The company is affiliated with national real estate investment firm Albany Road Real Estate Partners, which was founded in 2012 in Boston and now owns a massive portfolio of warehouses, office parks, self-story facilities, medical buildings and sports facilities throughout the country.
The building is currently 90% leased, according to Colliers, with office units comprising the majority of the building’s available space. Tenants listed at the property include Brewers Supply Group, a provider of bulk beer brewing supplies; Wiremasters, a provider of Mil-Spec wire, cable, connectors and harness management products; and Uncas International, a supplier of jewelry and accessories.
The two-story building was constructed in 1973, according to the town’s online property tax evaluation database. The property sold to Albany Road also includes the land on neighboring 0 Division Road, according to the database.
The building itself was most recently valued by West Warwick assessors in fiscal year 2023 as being worth $10.9 million, according to the online database. The land at 1600 Division Road was last valued at $4.7 million, while land on 0 Division Road was valued at $152,000 and outbuildings were valued at $215,000.
Brookwood Financial said the office and warehouse building was last renovated in 2016.
The office and warehouse campus includes 1,086 parking spaces, according to the former owner.
A Colliers team led by the firm’s managing directors, Frank Petz and Matt Sherry, along with the company’s vice president of capital markets, Rob Schlesinger, closed the sale of the Class B industrial building on behalf of former owner Brookwood Financial, according to the real estate firm.
“Working alongside buyer Albany Road, the Colliers team that arranged the sale was able to advance through numerous market hurdles during the sale process, including interest rate fluctuations and volatile capital markets conditions,” according to a statement from Colliers announcing the property sale.
Colliers said the recent office and warehouse property sale coincides with a demand for industrial space that remains strong, as new “high-bay products” help drive up the need for inventory space.
Petz said the West Warwick property sale demonstrates a sustained demand for industrial space in the region.
“There continues to be a strong demand for industrial space in the Greater Boston area, including Rhode Island,” Petz said. “This successful sale of 1600 Division Road highlights the strength of the industrial real estate market, as well as the increasing investor interest in Class B warehouse buildings, particularly in tertiary markets. This property presents immense potential for investors, and we remain optimistic about the continued growth in the industrial real estate sector.”
Marc Larocque is a PBN contributing writer. Contact him at Larocque@PBN.com. You may also follow him on Twitter @LaRockObama.
