Boston's Stellar Credit; The Deal Sheet
As Boston prepares to sell $159M in bonds, Moody’s Investors Service says that the city’s credit rating is as good as it gets thanks, in part, to a healthy real estate market. (So, Boston, can we bum some money for gas?)
With an AAA credit rating and stable financial outlook, the city’s standing can’t get any higher, a spokesman for the rating agency tells Bisnow. (Are you sure there's no extra credit we could do?) Moody’s gave top grades to the new general obligation bonds that will be issued by Boston on March 12 and to its $918M in outstanding GO bonds for sound fiscal management, strong economy, conservative budgeting and spending, and growth in the tax base from commercial and residential real estate. Boston's largest revenue source is the property tax (63% of ’13 revenues), with more to come. The BRA’s current pipeline: 244 projects with at least 59M SF and $23B in value. 4M SF is under construction, including the New Balance HQ in Brighton (above).
The Deal Sheet
SALES
King Street Properties principal Tom Ragno declined to comment on reports that his company purchased 87 and 200 CambridgePark Dr from Pfizer for approximately $60M. But he did tell Bisnow that King Street is seeking to purchase more space appropriate for life science uses in sections of Cambridge, Lexington, and Waltham, where rents are lower than in Kendall Square. Pfizer is consolidating from a few locations into a new building, Six Ten Main Street.
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AGNL Wholesale paid nearly $27M for 25 Research Dr, a 282k SF Class-A office building in Westborough that is fully leased to BJ’s Wholesale Club until 2026. The seller, National Development/Charles River, was repped by Avison Young’s Scott Jamieson, Michael Smith, and Brandon Dickson.
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16 River Street Apartments paid $4.5M for the eight-unit apartment building at 16 River St on Beacon Hill to 16 River Street. The seller was repped by Boston Realty Advisors and the buyer by Marcus & Millichap’s Dennis Kelleher.
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Bradstreet & Chandler and Novaya Real Estate Ventures purchased Heron Cove Office Park in Merrimack, NH, a 152k SF, three-building office park near Route 3 from Castle Hill Partners. CBRE/NE’s Bill Moylan and Roger Dieker repped the seller and found the buyer, while Kyle Juszczyszyn and Josh Klimkiewicz secured the financing and Roger Dieker, Mike Tamposi, and Chris Healey will handle the leasing.
LEASES
Compuware has taken 68k SF at Hobbs Brook Office Park (404 Wyman St in Waltham) from Hobbs Brook Management in a relo from Lexington and another Waltham location. The company’s move into the recently renovated, 450k SF building was arranged by Wyman Street Advisors’ Chip Batchelder, who repped the landlord, and Cresa’s Shawn McDonough, Joe Sciolla, Andrew Orpik, Cameron McCausland, and Ann Coggeshall for the tenant.
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G-Force Shipping, a third-party logistics company, leased 15k SF from Campanelli at Heritage Landing in Quincy. Campanelli’s Peter Brown secured the deal aided by Cushman & Wakefield’s Mike Frisoli, Matt Morgan, Dave Martel, and Jason Roth. Cresa Boston’s Joe Doyle, Jon Vacca, and Dan Sullivan repped the tenant.
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After more than 20 years in Davis Square, Arrowstreet has leased 12k SF at 10 Post Office Square in the Financial District from landlord Broadway Partners. The architecture firm took 25% more space than it had occupied to accommodate its growth and to be more accessible to clients and colleagues. In the Seaport, it designed the Westin Waterfront Hotel, Parklane Seaport, and other projects.
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Fast Splits Multisport has signed a long-term lease for 6,000 SF at 77 Charles St in Needham with landlord Winhall, which was repped by Boston Realty Advisors’ Adam Meixner, Jeremy Freid, and Jordan Sneider. The tenant was repped by Cresa Boston’s David Ross. For Fast Splits, this is a relo from Newton.
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For its first US store, Caffe Nero leased 2,400 SF at Millennium Place, planning a spring opening.
ASSIGNMENTS
Skanska has signed a $126M contract to build the Watermark Seaport being developed by a JV between Twining Properties and Skanska USA Commercial Development. The complex will have 346 rental apartments expected to be ready for occupancy in March ’16.
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The Higgins Armory Museum hired CBRE/NE to sell its historic building and its land. The museum’s goals are to ensure reuse of the existing building; receive a reasonable financial return; honor historic features of the building; enhance the surrounding community; and make a deal quickly.
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Avison Young is now the exclusive leasing agent for Campanelli’s Strawberry Hill building at 289 Great Rd in Acton. Jack Kerrigan, Steve Cook, Bill Sullivan and Anne Flanagan will rep the 85k SF building.
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The Bulfinch Co hired Transwestern | RBJ to lease 784 Memorial Dr, the former Polaroid HQ overlooking the Charles River in Cambridge. The new team: Robert Richards, Eric Smith, and Sarah D’Elia.
EXECUTIVE MOVES
WS Development has brought on Stephen Prinn, the former director at Guggenheim Partners Real Estate, as its new VP of capital markets. He’ll support WS’s expansion nationwide and its extensive projects on the East Coast. At Guggenheim, Stephen managed all debt for its open-ended fund vehicle, conducted due diligence, and communications strategy for clients.
