Investors Pour Combined $109M Into Separate Burlington Office Assets
Separate investors have injected a combined $109M into the Burlington office market, securing adjacent buildings in the same week.
FoxRock, a South Shore-based developer, purchased the 159K SF office building at 1 Van De Graaff Drive from TA Realty for $33M at the end of August, according to Middlesex County land records. The six-story building is 73% leased, FoxRock said in a statement, and sits along the Route 128 corridor.
“This location will become a key piece of our new flexible leasing model that we will announce soon," FoxRock Director of Business Development Bryan Giudicelli said in a statement. "And we plan to continue to expand our geographic footprint to enhance our offering to tenants.”
Newmark co-Head of U.S. Capital Markets Robert Griffin, Vice Chairman Edward Maher, Executive Managing Director Matthew Pullen and Managing Director Samantha Hallowell of the firm’s Boston Capital Markets Group represented TA Realty and procured FoxRock, the brokerage said in a statement.
FoxRock owns a 4M SF diverse portfolio of South Shore assets and Wednesday pitched its latest project, a massive mixed-use development including a 20-story hotel and residential tower at a vacant lot in Quincy.
New York-based private equity firm Apollo Investment Corp. purchased the adjacent 3 Van De Graaff Drive office building for $76M in a transaction at the end of August, according to land records. Apollo paid 20-year owner American Landmark for the 292K SF property, and the office is 58% leased, according to Bldup, which first reported the sale.
The office, built in 1975, was mulled for a life sciences repositioning before the coronavirus pandemic, and town members in a 2019 meeting voted for zoning changes for three properties to encourage life sciences use.
Burlington has attempted to position itself as a life sciences player amid the booming industry and Nordblom Co. in May pitched a 270K SF lab project at 25 Network Drive. Office deals have quietly closed in the city 16 miles north of Boston, including ultrasound tech company Butterfly Network in June which signed a 10-year lease at National Development’s The District office campus.