News

409K SF Needham Campus Trades For $132M

140 Kendrick St. In Needham, Massachusetts

BXP has sold a Needham office campus as part of its larger sell-off plans.

The Boston-based office REIT sold its 409K SF 140 Kendrick St. campus in Needham for $132M, according to a press release. Lincoln Property Co. and Cross Ocean Partners acquired the property.

"140 Kendrick Street exemplifies the perfect blend of quality, prime location, and long-term stability," Scott Faber, senior vice president of investments at Lincoln Property Co., said in the release.

The campus is 96% leased. Wellington Management is the anchor tenant for the property, and other tenants include Clarks, CyberArk, Walker & Dunlop and Focus Partners Wealth.

Wellington committed to a 106K SF lease at the property in 2021. Focus Partners Wealth and CyberArk signed 90K SF and 60K SF leases last quarter, respectively, as BXP decided to put the building up for sale, the Boston Business Journal reported.

BXP acquired the 14-acre site for $31M in 1999 and built the three-building campus in 2000. The landlord had originally built the campus for Parametric Technology Corp. In 2019, Parametric moved from the property to a 250K SF office in Boston's Seaport District.

The REIT invested $27.8M in capital improvements to the property.

In October, BXP outlined plans to sell off 23 properties for roughly $1.9B by the end of 2027, Banker & Tradesman reported. The REIT said up to $700M in transactions could be completed by the end of this year.

As of Sept. 30, BXP had some 55M SF and 187 properties in its portfolio, with about 3.5M SF in development or redevelopment, according to its third-quarter investment overview.

BXP has been pivoting away from constructing new office space to focus on developing multifamily space. The REIT is developing one 312-unit project at 17 Hartwell Ave. in Lexington and has its eyes set on another 480-unit project in Weston.

Newmark's David Douvadjian Sr., Timothy O’Donnell, David Douvadjian Jr., Bobby Alvarado, Conor Reenstierna and Harrison Zucco worked on the deal.

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