The Deal Sheet
In what’s likely to be the largest office sale of the year, Senior Housing Property Trust paid The Fallon Co and partner Cornerstone Real Estate Advisers $1.12B for the Vertex complex on Fan Pier, and will buy more life science properties, says HFF executive managing director John Fowler, whose firm arranged the deal.
The purchase is a good way for Newton-based SNH to put out a lot of of money; the Boston waterfront asset is in its own backyard and "I believe they view it as a long-term hold," says John (here with wife Mary) who worked on the deal with senior managing director Coleman Benedict. Publicly held SNH wants to broaden its portfolio into medical office and life science. This isn’t their first life science purchase and "I expect them to buy more," John tells us. (Science is addicting; haven't you been watching Cosmos?)
Industry sources estimate that the sale price of the complex that cost nearly $900M to develop was a 6.5% cap rate. Any developer trying to build the 1.1M SF complex now would probably spend 15% more, says John. The $1.12B is an “attractive” price, he adds. Fallon was ready to sell because the clock started to tick on the 15-year lease with Vertex in December when the life science company began its relo from Cambridge. Also, the partnership sought to recycle the sizable amount of equity it had tied up in the site, which HFF sold to them in ’05.
An affiliate of Fairfield Residential purchased a 28-acre vacant lot across from the Marlborough Technology Park from an affiliate of The Gutierrez Co for an undisclosed priced. Fairfield plans to build a 40B, 225-unit luxury rental apartment community. CBRE/New England’s Simon Butler and Biria St. John repped the seller and found the buyer.
Samuels & Associates and investment partners, Weiner Ventures, and American Realty Advisors closed on the financing for the Barry’s Corner Residential and Retail Commons. The first private development on Harvard University land in Boston, which is on a long-term ground lease, will have 325 rental apartment units, 35k SF of ground floor retail space, and 120 parking spaces. Working for Samuels, HFF secured the JV equity with American and a construction loan from Northwestern Mutual.
LCB Senior Living secured $19.6 M of senior financing and JV equity capital to acquire a senior housing facility in Reading—the 86-unit assisted living community formerly known as Longwood at Reading. LCB will rebrand it as The Residence at Pearl Street. Cushman & Wakefield arranged the acquisition financing from M&T Bank and the JV equity through Virtus Real Estate Capital.
An affiliate of True North Capital Partners paid an affiliate of Prospectus $16.9M for the 74-unit Brickview Portfolio with properties in Somerville and Brighton. CBRE/NE’s Simon Butler and Biria St. John repped the seller and found the buyer.
CPA Gray, Gray & Gray leased 25k SF at 150 Royall St in Canton; a relo from Southwest Park in Westwood. Colliers CEO Tom Hynes, and EVP Jim Elcock repped the accountants. The landlord, OneBeacon Insurance Group was repped internally by John Ferrari and Babson Real Estate Advisors’ Richard Bradbury.
Four-time James Beard Nominee Matt Jennings, owner of Farmstead, in Rhode Island, has signed a 4,500 SF lease with Forest City to open “Townsman” restaurant at the new multifamily tower, Radian in late ’14. He and wife Kate will close their Rhode Island restaurant to open in Boston. Graffito SP’s Jesse Baerkahn repped Farmstand.
CLASS, a non-profit service provider for people with disabilities, leased 11k SF from Cummings Properties at 50 Concord St in Wilmington. Cummings’ Robert Yacobian worked with Stubblebine's Micah Stubblebine on the deal.
Construction & Development
Tomorrow, Mitchell Properties will ceremonially cut the ribbon on the 46 apartments in the Flats at 44, and a ground-breaking for the 50-unit Flats at 22 that's bringing new housing to Chelsea. The development team includes: The Architectural Team and DMS Design.
The energy services arm of Winn Cos, Open market ESCO, will develop 4 MW of installed renewable energy capacity at federally assisted housing by 2020. This is Winn’s commitment to support President Obama’s Climate Action Plan, a call to developers and owners to install 100 megawatts (MW) of renewable energy capacity at federally assisted housing by 2020. Winn’s contribution will amount to 4% of that challenge and will generate an annual savings of $3M in electricity costs.
The law firm Dain, Torpy, Le Ray, Wiest & Garner PC (Dain Torpy) has chosen a project team for its relo into 10k SF at 745 Atlantic Ave from 129 South St. Avison Young is the GC and StudioTROIKA, the architect. Dain plans a June move-in.
Steve Wendel has joined CBRE Capital Markets’ mutifamily division as FHA lending head of production. He’ll play a key role in expanding CBRE’s FHA lending platform for multifamily and seniors housing loans. He comes from Berkeley Point Capital, where he was executive managing director. Previously, he was managing director, co-head, at Deutsche Bank Berkshire Mortgage and managing director, head of commercial real estate, at ContiFinancial Corp.
Dan Collins, Greg Tanner, and admin Christina Lambertson, joined Avison Young in Boston to rep landlords and tenants in the downtown Boston office market. All three left NAI Hunneman in Boston.