The Davis Cos. has agreed to buy the Bedford Business Park from Boston Properties for $62.8 million, or roughly $166 per square foot.

The Davis Cos. is buying the property at an approximately 9 percent cap rate, said Brad Takala, managing director of acquisitions for Davis. That’s a much higher capitalization rate than many of the large, core properties that have recently sold, like 53 State St. and 33 Arch St., which had cap rates of 4.3 percent and 4.7 percent, respectively, according to industry sources.

National Development originally had the property under agreement, but decided not to go through with the deal because “we just found some things in our due diligence that caused us to not buy it,” said Ted Tye, managing partner for National Development.

While Tye would not explain what those things were, an industry source indicated there have been concerns among potential investors about tenant credit and lease-length issues. Even so, Takala said his firm is pleased with the purchase.

“We feel the Bedford location plays more to the Route 128 market characteristics than the Interstate 495 characteristics,” Takala told Banker & Tradesman. “We like the current cash flow and long-term perspectives. We do have an angle to reposition the property. We believe it’s a good purchase based on current tenant lineup, which are especially technology-oriented. Boston Properties took very good care of it.

The Davis Cos. looked at several options for the future of the property, and feels the firm and the assets and have the flexibility to meet whatever needs the market presents, including converting more space to lab use if and when it becomes available.