This Week's Boston Deal Sheet
Rockpoint Group’s agreement to buy 75-101 Federal St from Pearlmark for $320M signals the strength of the Boston office market and health of the CMBS market, Trepp’s Sean Barrie tells us.
The deal offers opportunity to the buyer and seller, Sean (above) says. Pearlmark can pay off its $210M CMBS loan early in the strengthening CMBS market. In Boston, the $6B of existing CMBS loans are 93.5% current, a big improvement from the dark days of the recession. Rockpoint can renovate the building that has a prime downtown address and lease the 20% of space that’s empty at today’s rising rents. Sean says they may have an inside track on a new tenant.
For its first Boston buy, an affiliate of Berkshire Group—Berkshire Income Realty—paid $54M to Metric Construction for Gatehouse 75, a 99-unit multifamily building in Charlestown. Berkshire, which also is developing a major mixed-use property in the Seaport, chose to buy this luxury building for its: new construction (late 2013), convenient location, easy T access and full tenant roster, VP Brendon Sullivan (above) tells Bisnow. There’s a scant supply of core multifamily buildings on the market but Berkshire will keep looking for its next acquisition, he says. In the region, Berkshire affiliates also own multifamily assets in Watertown, Quincy and Franklin.
US Realty Advisors, on behalf of its second fund, acquired 1 & 2 Federal St in Billerica for $26M. Cushman & Wakefield’s Robert Griffin, Edward Maher and Matt Pullen oversaw the deal for the fully leased and renovated single-tenant property occupied by PAREXEL International.
KS Partners paid Hudson Advisors $14.6M for Connector Park, two Class-A office buildings in Lowell. DTZ Boston’s David Pergola and Brian Doherty repped the seller.
GreenOak and Synergy Investments tapped JLL to lease Ten Post Office Square, a 445k SF Class-A mid-rise in the heart of downtown. They chose Dyer Brown to design upgrades for the common area and an amenity package that includes an improved lobby and central reception area; new collaborative spaces and eateries.
For its first store in the state, Michigan-based Goldfish Swim School will work with Vantage Builders to transform a 13k SF warehouse into its new facility at 45 Fourth Ave in Needham. The company offers indoor swim classes and programs for children 4 months and up.
Colliers leased almost 71k SF of office space in the distant I-495 South market. Lockheed Martin took space at 225 Foxborough Blvd in Foxborough from landlord Park Square Realty with the parties repped by Bill Lynch, David Goodhue, Austin Smith and PJ Foster. More leases were signed in Mansfield, Norton and Taunton.
Vestmark expanded into 44k SF at 100 Quannapowitt Pkwy in Wakefield repped by Newmark Grubb Knight Frank’s Christopher Curley; former owner Digital Realty was repped by JLL’s Tamie Thompson and Peter Richardson. RJ Kelly is the new landlord.
American Renal Associates is expanding its HQ at 500 Cummings Center in Beverly to occupy a total of 60k SF. The new space is an open plan layout corner suite overlooking Upper Shoe Pond, with lots of natural light and custom finishes that match those in the tenant’s current suite.
Heavy hitter Frank Wuest joined Marcus Partners as a principal with a focus on acquisitions and redevelopment. During his career, Frank has directed the acquisition, development, sale or financing of more than $8B of office, industrial, residential, retail and mixed-use properties. He comes from Forest City Enterprises, where he was president of the company’s Boston office and its Science & Technology Group; he also served on the executive and investment committees.
By The Numbers
Yesterday, Mayor Walsh announced that Standard & Poor's Rating Service and Moody's Investors Service both gave Boston a AAA bond rating, the highest possible credit rating for a city. The rating agencies say the city’s fiscal management is sound and the economy strong with local unemployment at 4.5% and $23B in the BRA development pipeline.
Construction & Development
Boston’s Brutalist City Hall Plaza—some love it, others hate it—may be headed for a makeover or sale. Mayor Walsh is calling for new ideas for the use, redesign and operations of the yawning 200k SF concrete plateau that runs between Government Center and Faneuil Hall. The city’s official building “needs new energy” for its exterior and the Mayor hopes to gauge market interest in the project and/or the property. We’re curious. If you want to let us know your thoughts, send them to firstname.lastname@example.org.