This Week's Boston Deal Sheet
A Michigan-based real estate investment trust acquired a retail property leased by BJ's Wholesale Club in Framingham.
Agree Realty bought the the 114K SF property at 26 Whittier St. for $28M, according to property records. Agree bought the Framingham building from Chicago-based Inland Real Estate Group, the Worcester Business Journal reported. Inland acquired it in 2014 for $26.5M.
Agree owns a number of properties in Massachusetts spanning from Boston to the western part of the state and houses tenants Best Buy, Chick-fil-A, CVS, Aldi, BJ's and Advance Auto Parts, according to its website.
The REIT targets properties leased up by chain retailers like Costco Wholesale, Home Depot, Target and Lowe's. It owns over 2,000 properties encompassing 42M SF across the country.
SALES
Boston investment firm Kendall Capital acquired an eight-story, 38K SF Class-B office building at 33-41 West St. for $4.1M from Dedham-based Bay Management Corp. The deal represented a 74% discount from the $16M that Bay Management paid for the property in 2016. The building is more than 50% occupied by tenants like Escape the Room Boston, Musicians Playground and MassVOTE.
LEASES
DPR Construction leased a 16K SF office at 950 Winter St. in Waltham. Its new Waltham office is in a building owned by Boston Properties, which also owns three other buildings at 1000, 1050 and 1100 Winter St. that make up the 957K SF Bay Colony campus. Other tenants at the complex include the United Health Group and PatientKeeper.
***
MedMinder expanded its lease to 24K SF at 320 Norwood Park S in Norwood to accommodate additional growth, the Boston Real Estate Times reported. Savills' Larry Epstein represented MedMinder, and R.W. Holmes represented the landlord, Brave Dog Properties. The expansion brings the property to 85% leased.
FINANCING
Pennsylvania Real Estate Investment Trust was authorized to use up to $54M in proceeds from a revolving credit facility to refinance its 500K SF Dartmouth Mall loan, the Boston Business Journal reported. The mall is now included as collateral in PREIT's credit facility.
The news comes after the mall's CMBS loan was put into special servicing after PREIT's failure to repay it. The owner still has a looming Dec. 10 maturity date for the loan. The property was recently appraised at $59M, just more than half of the $108M it was appraised for in 2013.
The Philadelphia-based REIT has been embroiled in a power struggle between its leadership and some of its largest shareholders over the impending debt maturity.
CONSTRUCTION & DEVELOPMENT
Last week, MP Boston's Winthrop Center officially became the world's largest office building designed to the Passive House standard. The 812K SF office building opened its doors earlier this year. The Passive House designation helped to get big leases from the likes of Deloitte, McKinsey & Co. and Cambridge Associates. The building also has 317 residential units spanning 510K SF.
