Real Estate Journal — February 12 - 25, 2016 — 3A
M id A tlantic
M id A tlantic R eal E state J ournal Corkery of CBRE represents The Hampshire Cos. The Hampshire Cos. sells 87,927 s/f mixed-use building
“Ask the Professor”
A landlord’s operating cash flow is derived pri- marily from its tenant leases. The lease agree- ment is the legal contract which spells out the rights and obligations between the two parties. The landlord or lessor is the legal owner of the property while the tenant or lessee has the right to use the property in return for paying rent. The lease agreement contains many important issues such as the amount of space that will be occupied, lease term, renewal rights, cancella- tion and expansion options, maintenance and repair responsibilities, lease concessions (if any), right to sublet and insurance and tax reimburse- ments. All leases would identify which party is responsible for which issues. Most leases are either gross leases or net leases. Which one of the following state- ments about leases is correct? a) The tenant’s expected annual business sales would typically be reported in the lease. b) A landlord would never want to sign a lease with a tenant longer than 15 years. c) In both the gross lease and net lease, a ten- ant may deduct from its rent the fixed costs of property taxes and insurance. d) A landlord may want to offer a tenant several months of free rent to entice that tenant to sign a long term lease in his building. e) There is no difference between a gross lease and a net lease. The correct answer is “D”.
B ILLERICA, MA — The Hampshi re Companies , a full- service, private real estate investment firm with equity in assets valued at over $2.5 billion, has announced the sale of an 87,927 s/f mixed- use industrial building lo- cated at 159 Rangeway Rd. in Billerica, Massachusetts, to the property’s tenant, Lyn- nway Auto Auction, Inc. The buyer has been a tenant of the building since 2011. The mixed-use industrial building features approxi- mately 14% office space as well as 14 dock-high loading doors, two drive-in loading doors, 24-foot ceilings and ample parking. The building is located on six acres and is adjacent to another 30 acres that Lynnway Auto Auction, Inc. currently owns. The property is located just off of U.S. Route 3 and the Treble Cove Rd. intersection which also provides easy access to I-495, Route 128 and I-95. “Any time that we can sell one of our properties to an existing tenant, that deal becomes mutually beneficial for both parties,” said Igor Derbaremdiker , disposi-
875 County Rd. 60
159 Rangeway Rd.
tions director for The Hamp- shire Companies. “Our abil- ity to align tenants with superior locations that help their businesses to prosper drives our success and helps us to succeed in delivering a great value and a desirable result for our investors and the buyer. The communities that we operate in also reap the benefits of having estab- lished brands continuing to do business where they are already comfortable and
have good relationships.” Currently there is 35,054 s/f of space at the property under contract for a sub- lease. David Corkery of CBRE represented The Hampshire Companies in the trans- action. The Stubblebine Company represented Lyn- nway Auto Auction, Inc. The Hampshire Compa- nies is a full-service, private real estate firm based in Morristown, New Jersey. n
A Ronald M. Shapiro is Assistant Professor of Professional Practice in the Finance and Economics Department at Rutgers Business School ofNewarkandNewBruns- wickwhere he teaches real estate finance. Prior toRutgersBusiness School, Ron was SVP with Union Center National Bank.
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