The Deal Sheet
Tomorrow for the first time in 10 years, a new office building will get into construction in the Back Bay, the city’s highest-priced submarket. At 425k SF and 17 stories, 888 Boylston St isn’t the biggest project around but will set a new standard for sustainability, says developer Boston Properties’ Bryan Koop.
Boston certainly isn’t the sunshine city. But those working in this mid-rise will have enough natural light 60% of the time to forgo artificial lighting thanks to 14-foot ceilings and other technology. It will use 37% less potable water and 45% less energy than a traditional office. Bryan (above with high-performance workspace consultant Fritz Steele), who has a long time commitment to sustainability, says in addition to solar-energy generated on-site, this will be Boston’s first commercial office tower to use wind turbine energy.
Construction of the building, envisioned as an 11-story version 30 years ago as part of the Prudential Center’s master plan, won’t require a huge added expense to be green, Bryan says. As developers perfect their sustainability skills, they’re able to build at a cost comparable to traditional offices. Natixis Global Asset Management is the anchor, committing to 128k SF. Unconfirmed—Bloomingdale’s will be the retail anchor. (We really hope so.) The building designed by FX Fowle was created from the inside out to optimize the daily work environment for occupants, Bryan says.
Sales
An affiliate of Blackstone Real Estate Partners and Equity Office paid Shorenstein Properties $117M for 399 Boylston St in the Back Bay. Cushman & Wakefield’s Robert Griffin, Edward Maher and Matt Pullen repped the seller of the core asset that’s 87% leased.
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Rubenstein Properties Fund II and partner Genesis Management Group paid $13M for the 495 Business Center, a 722k SF complex on 84 acres in Tewksbury that was the birthplace and original HQ of Wang Computers.
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An undisclosed buyer purchased the HQ of Forrester Research and a 650-car parking garage in Discovery Park in Cambridge from Bullfinch Companies. Recently, the city assessed the property value at nearly $60M. Bulfinch prez Robert Schlager says the company intends to develop the balance of Discovery Park “over the next several quarters.” Eastdil Secured advised Bulfinch.
Brady Sullivan Properties acquired City Hall Plaza in Manchester, NH from TIER REIT for an undisclosed price. The 19-story, 217k SF Class A office was built in 1992. Cushman & Wakefield’s Robert Griffin, Edward Maher and Matt Pullen repped the seller.
Leasing
Quest Diagnostics recently moved into 200k SF in Marlborough that it leased from Atlantic Management. The new facility for clinical testing brings together 1,350 employees from around the region under one roof.
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For an HQ relo, RAGE Frameworks has taken 16k SF at 3 Allied Dr in Dedham for its move from 200 Lowder Brook Dr in Westwood. Avison Young’s Mark Silva and Mike Callahan led the team doing the build out.
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At Maric's 35 New England Business Center in Andover Vanasse & Associates signed for 6,766 SF (repped by Mohr Partners), Old Republic Title Insurance Gp for 5,141 SF (repped by DZT) and Spruce Law (repped by JLL) took 2,297 SF. CBRE/NE’s Kerry Olson Hawkins repped the landlord in the transactions.
In a relo from Lexington to Acton, Willmott & Associates took 2,100 SF at Campanelli’s Strawberry Hill Corporate Center at 289 Great Rd. Avison Young’s Jack Kerrigan, Steve Cook, Bill Sullivan, and Anne Flanagan repped the landlord and Lincoln Property repped the tenant.
Financing
Metropolitan Properties of America has secured $175M in financing to pay off existing debt on Granada Highlands in Malden, complete an existing unit renovation and build 236 new units. Colliers’ John Broderick and Kevin Phelan repped MPA to secure the new financing through JP Morgan Chase.
People
Berkshire Group formed a new board of directors to oversee its strategic direction, and promoted prez Chuck Leitner to CEO. The Board includes George Krupp, co-founder and chairman, Berkshire Group; Douglas Krupp, Co-Founder and Vice Chairman, Berkshire Group; Chuck Leitner, partner and CEO, Berkshire Group; Joseph Azrack, principal owner, Azrack & Company and Senior Advisor to Apollo Global Management; C. Ronald Blankenship, member of the boards of Regency Centers, Pacolet-Milliken Enterprises Inc., and Carefree Communities; and Jeanne Myerson, president and CEO, The Swig Company.
Assignments
Bulfinch Congress Holdings – a joint venture of the National Electrical Benefit Fund and the British-Based Lewis Trust Group – and its Boston-based development partner, The HYM Investment Group, LLC, have named internationally renowned Pelli Clarke Pelli Architects and the highly accomplished Boston-based firm CBT Architects as co-designers of the first two high-rise towers planned as part of the six building, 2.3 million square feet, mixed-use redevelopment of the Government Center Garage.
