This Week's Boston Deal Sheet
ARX Urban acquired a multifamily property in Framingham for $13.6M, a $1.3M drop from its initial listing price.
The property, which includes two 27-unit apartment buildings and an adjacent two-family building, was originally listed for $15M, Framingham Source reported in March.
"We are thrilled to expand our socially-minded multifamily investment and management platform to Framingham," ARX Urban principal Benjamin Moll told Bisnow.
Moll said ARX will implement an operating model that includes a self-imposed rent cap for tenants in good standing to preserve their tenancy. The group also plans to renovate the property to make it more energy-efficient.
The property's last renovation included new rubber roofs, a new parking lot, sewer pumps and replacement windows. The property last sold in 2020 for $8.6M.
Before ARX signed the papers, there were multiple buyers interested in the property, according to Horvarth & Tremblay Executive Vice President Dennis Kelleher. He told Bisnow that due to the rising interest rates last year, a potential deal fell through and ARX was able to come in.
Along with Kelleher, Horvarth & Tremblay's John Pentore and Ryan Benton represented the seller and procured the buyer in the deal. ARX has other multifamily properties in Boston, Denver and New York City, according to its website.
SALES
Calare Properties acquired an 80K SF property in Foxborough for $7.9M, according to public records. The two-story industrial building sits on 9.4 acres at 325 Foxborough Blvd. NECI is the sole tenant on the property, occupying the entire building with a 12-year lease. The property has an additional 40K SF of development potential.
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Boston University bought back 11-19 Deerfield St. in Fenway from Related Cos. for $56M in order to settle a lawsuit with the real estate company, the Boston Business Journal reported. A Related affiliate sued the university in Suffolk Superior Court in 2021, claiming BU failed to pay more than $8M under a lease agreement at the building.
BU allegedly refused to pay unless the property was "substantially redeveloped," and it also failed to compensate Related for redesign work, according to the suit. BU sold Related the building for $28.7M in 2016, along with eight other properties in Kenmore Square, including Whoop's headquarters at One Kenmore Square.
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Alexandria Real Estate Equities acquired 35 Gatehouse Drive in Waltham for $272M and is considering turning it into a "mega campus" along with two other properties in the area, it said in its quarterly earnings report last week. The property on Gatehouse Drive is 100% leased and has 75K SF of additional development potential. The life sciences REIT said it has the opportunity to expand its nearby properties on Sylvan Road and Winter Street.
CONSTRUCTION & DEVELOPMENT
Dick’s Sporting Goods Inc. plans to open a House of Sports store at the Prudential Center in the Back Bay, the Boston Business Journal reported. Boston Properties' securities filings show a 118K SF building is expected to be occupied in the second quarter of 2024, and it is estimated to be a $43.8M investment for the REIT. The sporting goods store has also begun to hire employees for the store. The store will mark the first in a major city, with other locations in Victor, New York; Minnetonka, Minnesota; and Knoxville, Tennessee.
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WS Development plans to shift to renewable electricity sources for its New England portfolio, including eight of its Seaport buildings, Legacy Place in Dedham and The Street in Chestnut Hill.
The move, part of a seven-year power purchase agreement with NRG Energy, would reduce the portfolio's greenhouse gas emissions related to electricity consumption by 100%, the real estate firm said last week. One Boston Wharf Road, a 707K SF building fully leased by Amazon, would become the largest net-zero building upon its completion under this new energy plan.
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Rise, in partnership with DivcoWest, broke ground on an 84K SF multifamily project in West Roxbury. The project, branded The Ellery, is at 199 Gardner St. The project includes four residential buildings with 70 units. Nine of the units will be affordable to households earning up to 70% of the area median income.
CORRECTION, FEB. 7, 5:15 P.M. ET: A previous version of this story incorrectly stated the sale price for the ARX Urban acquisition and its drop from the prior sale. The story has been updated.
