This Week's Boston Deal Sheet
Realty Income Corp. acquired a portfolio of 415 single-tenant convenience stores, including 116 in Massachusetts, from EG Group in a $1.5B sale-leaseback agreement.
Cumberland Farms stores make up over 80% of the rent the portfolio generates, according to a press release. Other brands include Tom Thumb, Fastrac and Sprint.
"We believe this portfolio includes brands that are among the most recognizable convenience store brands on the east coast, and the convenience store industry has long been a well-performing staple in our real estate portfolio," Realty Income CEO Sumit Roy said in the release.
The average size of properties in the portfolio is approximately 3,700 SF. The portfolio also has properties in other states, including New York and Florida. The deal is expected to close in the second quarter.
In 2019, EG Group acquired Cumberland Farms and moved EG's North American headquarters to Westborough, Massachusetts. The group operates in 31 states and is the fifth-biggest convenience store system in the U.S. with over 1,800 sites.
There are 586 Cumberland Farms stores in eight states, according to ScrapeHero. Massachusetts has 214, or 37% of these locations. The state with the second-most Cumberland Farms stores is New York with 86, followed by Connecticut with 75.
SALES
Synergy Investments acquired the Chestnut Place office complex in Worcester for $10.5M, it announced Thursday. The two-building, 273K SF office complex is in the city's central business district and is over 80% leased. The buildings include One Chestnut Place and Two Chestnut Place.
Kelleher & Sadowsky's James Umphrey and Brian Johnson brokered the deal and represented the seller, Hertz Investment Group, which acquired the site in 2015.
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An entity known as 11 Marlborough LLC bought two multifamily buildings on Marlborough Street in the Back Bay for $12M, according to public records. The 14K SF property at 9-11 Marlborough St. consists of 22 units, according to a listing for the property. Campion & Co.'s Tracy Campion brokered the deal.
LEASES
Flexible lab provider SmartLabs leased the entire third floor of New England Development's redevelopment of the CambridgeSide mall. The company signed a lease for 140K SF, marking one of the largest life sciences leases in the region in recent months. It will use the space to build and operate custom labs that can accommodate life sciences companies ranging from 10 to 100 employees.
The lab space provider has four existing locations in the Boston region at Boston Landing, the Seaport District, Cambridgeport and Kendall Square, plus two locations in San Francisco and Philadelphia. The new location is the company's largest and is expected to open in 2024.
CONSTRUCTION & DEVELOPMENT
2Life Communities celebrated the groundbreaking of its Opus Newton senior living project on Monday. The development will feature 174 units for residents 62 and older. The developer pre-sold 95% of the units, allowing it to begin construction earlier than expected. The project is connected to 2Life's Coleman House on the Jewish Community Center of Greater Boston's campus.
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The Davis Cos. celebrated the topping off of its 101 Smith Place life sciences development in Alewife. The 161K SF development is one of four buildings that make up The Quad life sciences campus, and it marks Phase 2 of the campus's masterplan.
Tenants at the campus include Gingko Bioworks, Civetta Therapeutics, Invaio Sciences, Hyperion and Samsung Electronics. 101 Smith Place is expected to be completed in late 2023.
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The Boston Planning & Development Agency unveiled its draft design guidelines for life sciences projects submitted to the agency in a meeting on Wednesday. The guidelines are part of the agency's broader Life Sciences Action Agenda, which will regulate life sciences development in the city, including new zoning definitions for what constitutes a research lab.
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Tishman Speyer proposed a new life sciences project in the Fort Point neighborhood. The 455K SF development at 232 A St. would include lab, office and retail space. The site was owned by shaving company Gillette, which used it as a parking lot and staging area for delivery and operations. Tishman bought the site from Gillette for $80M in 2021.
