Jumbo Capital Buys 7-Building Office Portfolio In Boston Suburbs For $49M
Quincy-based Jumbo Capital acquired a seven-building office portfolio in Wellesley that is home to a handful of medical and small professional services businesses.
Jumbo bought the portfolio for $48.5M from Haynes Management Inc., The Real Reporter first reported. The properties are scattered in the Wellesley Hills neighborhood.
The firm's managing partner, Jay Hirsh, told the Boston Business Journal that it was attracted to the properties due to the types of tenants in the buildings: small medical, law, accounting and financial services businesses. These businesses include Wellesley Smiles Dental Professionals, Landmark Services Inc. and Courthouse Cigar Co.
“In a post-Covid world, these types of office properties make a ton of sense to me,” Hirsh said, according to BBJ. “Everybody’s got a five-minute commute. The rents are slightly below-market, but nothing too crazy.”
Brookline Bank provided the firm with a $23.7M loan for the acquisition, BBJ reported.
The properties in the portfolio are 40 Grove St., 326-332 Washington St., 16 Laurel Ave., 336 Washington St., 366 Washington St., 10 Prescott St. and 16 Prescott St. The individual sale prices for the buildings ranged from $1.3M to $15M.
Newmark's Michael Greeley marketed the portfolio and brokered the transaction, according to BBJ.
Though Hirsh sees potential in this office portfolio, the larger office market has continued to underperform. Office vacancy in Greater Boston surpassed 20% in the third quarter for the first time since 2012, according to Colliers, with the total available space reaching 21.5M SF.
Founded in 2009, Jumbo Capital owns and manages 4M SF of commercial real estate across Greater Boston, including office, industrial, life sciences and multifamily assets, according to its website. In May, it acquired a 127K SF Hingham shopping center for $45M.
