JLL Buys Logistics Property in West Boston Submarket

Chicago-based JLL Income Property Trust recently announced the acquisition of Worcester Distribution Center, an industrial building located in a Western Boston submarket. The new owner reportedly paid approximately $90 million for the property.

Michael Restivo, David Coffman, and Tommy Hovey of JLL’s Boston office represented the buyer, while Chris Skeffington, Daniel Hines, Roy Sandeman, and Scott Dragos of Boston-based CBRE served as the listing brokers.

“Worcester Distribution Center is an important addition to our expanding industrial portfolio,” said Allan Swaringen, president and CEO of JLL Income Property Trust. “The cost of fuel has continued to rise, widening the imbalance between the costs of transportation and rent. As a result, demand for well-located industrial properties proximate to nodes of critical transportation infrastructure has increased. We have long prioritized logistics centers near these key transportation epicenters, and Worcester Distribution Center aligns with our industrial strategy to position a meaningful share of the portfolio to capitalize on these longer-term demand drivers.”

The distribution center is located in the Boylston submarket at the intersection of the state’s primary truck corridors, where it offers efficient distribution across the East Coast through convenient access to Interstate 90 and Interstate 495.

In addition to the strategic location, property features include: 36′ clear heights and buildouts for specialized storage including refrigeration; temperature-controlled space; automation; and a storage vault.

Completed in 2022, Worcester Distribution Center incorporates roughly 396,000 square feet of class A Boston industrial space and is leased to a single tenant on a long-term lease. Initially developed by Wakefield-based NorthBridge Partners as a multi-tenant distribution facility, the property is now home to Ohio-based healthcare services and products company Cardinal Health, which occupies about 317,000 square feet at the site.

Industrial property in the Boston market commanded the highest average sale price per square foot in the Northeastern U.S. region — nearly $222 — when looking at year-to-date sales, which totaled $818 million through September.