Image courtesy of MBTA

The MBTA has agreed to acquire a former Anheuser-Busch warehouse near Wellington Circle to house its fleet of electric buses.

The MBTA board of directors on Tuesday authorized executives to complete negotiations on the 21-acre property at 440 Riverside Ave. in Medford.

Owner Anheuser-Busch placed the property on the market last winter after closing the warehouse, and hired CBRE to market it to potential buyers. The property includes a 163,667 square-foot cold storage warehouse and two outbuildings, along with surface parking.

The existing structures are suitable for a new maintenance facility for the electric bus fleet, according to a presentation to the board. It would replace the “outdated” bus maintenance facilities on Western Avenue in Lynn and on the Fellsway in Medford, which are too small for modern electric-battery buses.

Streetsblog Mass first reported the decision.

The Riverside Avenue site provides proximity to key MBTA bus routes, according to the presentation, and supports electrification of 50 percent of the bus fleet. A potential location at the MBTA’s nearby Wellington station was rejected because it would require removal of existing parking, and has limitations because the city of Medford owns the property’s air rights.

The MBTA has set a goal of operating a 100 percent electric battery bus system by 2040. The current fleet includes 1,168 buses, approximately half of which are diesel hybrid models.

The transit agency’s bus electrification plan includes facilities upgrades to support maintenance and charging of battery-electric buses. The bus fleet is serviced at nine existing maintenance facilities in Boston, Cambridge, Medford, Lynn and Quincy.

The board’s vote authorizes the acquisition of the Riverside Drive property. The purchase price was not announced.

CBRE marketing materials noted that the property’s size and location made it suitable for a variety of redevelopment options.