The Real Reporter
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Helvetica Neue Neue Helvetica 73 extendedbold 73 The REal Reporter corporate ID info ID corporate Reporter REal The TheA COMPENDIUM OF COMMERCIAL Real PROPERTY & CAPITALReporter NEWS website: www.therealreporter.com website: contact: [email protected] contact: AUGUST 12, 2013 THIS WEEK’S ISSUE The News Source for Commercial Real Estate Real Commercial for Source News The line: Tag News gothic regular gothic News Pro-Life in Lexington. 2 Big Numbers . 4 Blackstone Confirms Eastdil as Rockwell regular Rockwell Reporter Weekly CMYK 1,1,13,15 CMYK Financing Industry . 6 Advisor on $275M Trophy Sale CMYK 24,0,0,38 CMYK Congress Sells Out . 6 Peabody Pride . 7 BY JOE CLEMENTS OSTON — The landmark disposi- Btion of a half-inter- est stake in One PO Square for a price of $680 per sf did involve Eastdil Secured in the process, seller Equity Office is acknowledging through its parent com- THE REAL REPORT pany, Blackstone. “We can confirm that Eastdil Fenway’s Phoenix continued on page 14 One Post Office Square, Boston MA C&W Listing 130,000-SF Palomar HQ BY JOE CLEMENTS URLINGTON — Start with a major company reverse commuting to BInterstate 495 from this Route 128 hotspot, and there is plenty more intrigu- ing news in the listing of a 130,000-sf com- mercial building at 15 Network Dr. through Cushman & Wakefield, a deal expected to hit the streets this week. Estimates of pricing from $23 million to $25 million were not open to discussion by 15 Network Dr., Burlington MA continued on page 16 Grossman Buys Again on ‘Main Street’ BY JOE CLEMENTS ROOKLINE — In seeking real estate they can bank Bon, the Grossman Cos. 84 The Fenway, Boston MA has acquired a building others BOSTON — Having a building fire bank in, last week paying $2.2 can be as helpful to property values million for 429 Harvard St. in a as a pig farm opening next door, but deal backed by Cambridge somehow, a blaze at 84 The Fenway Savings Bank financing of $1.5 gave suitors little pause when the 22- million. The brick-faced struc- unit apartment building was put on ture houses a top-performing continued on page 17 Citizens Bank and the lot of Photo: Derek Szabo Photo: Derek continued on page 15 429 Harvard St., Brookline MA 2 THE REAL REPORTER August 12, 2013 KSP Lands Dutch Firm for 53,000SF HQ BY MIKE HOBAN EXINGTON — King Street Properties continues to bring tenants to its L183,000-sf Lexington Science Campus on Hartwell Avenue, as the Waltham-based developer and investor recently inked Dutch gene therapy company uniQure to a 10-year deal establishing its US headquarters at the park where it will occupy a Lexington Science Campus, Lexington MA 53,000-sf mix of labora- Thomas Ragno tory, manufacturing and Hartwell Pl. that was announced in March. to the “ultra-state of the art” requirements office space. Principal “I think this is significant because it’s a for the facility, uniQure will move into Stephen Lynch tells the reflection of the growing international their new facility next spring. The deal Real Reporter that the reputation of the science node that’s being was brokered by Cushman & Wakefield deal brings the total to created by us and others along Hartwell Executive Directors Mark Winters and 80,000 sf of transactions Avenue in Lexington,” says Lynch. “We Richard Ruggiero. Winters says the deal is at the campus in 2013, have seven tenants now, and three come significant for the suburban lab market with uniQure being the from Kendall Square (Abpro, Quanterix because “it’s the largest suburban lab deal second international and T2 Biosystems), and now we’ve got that’s been done in the last two years,” Stephen Lynch tenant to sign on since the two international companies as well as even though he insists Cambridge has not January. Sekisui Diagnostics, a subsidiary two companies that come from elsewhere lost any of its allure. of the Tokyo-based Sekisui Chemical Co., in the US.” “I wouldn’t say it’s indicative of a larger previously signed a 19,000 sf deal at 4 Following a seven-month build out due continued on page 17 MANAGING YOUR MOST VALUABLE 35 SF ASSETS. INSTALLATION | MODERNIZATION | MAINTENENCE | INSPECTIONS The Highest Standards In Vertical Transportation | 781.380.0932 | www.3phaseelevator.com real reporter full pg ad 8.13:Layout 1 8/8/13 9:24 AM Page 1 Janitronics congratulates Biogen Idec on their expansion to 17 Cambridge Center. We are proud to be your cleaning partner as you continue to grow. janitronics.com 4 THE REAL REPORTER August 12, 2013 Your Property Walker & Dunlop Crests $2.6B in Q2 Originations Our Financing Fannie Mae The bank of choice for getting the deal done. Freddie Mac The commercial real estate group at Washington FHA Trust provides commercial real estate mortgages for the construction, refinancing, and purchase of Bridge investment real estate projects throughout New England. Julia Anne M. Slom CMBS SVP & Team Leader For more information, call Julia Anne M. Slom, Senior Vice President & Team Leader, at 401-348- Szabo Photo: Derek Life Company 1430 or email her at [email protected]. BY JOE CLEMENTS ETHESDA, MD — Figures of 91 percent loan origination growth, 94 percent revenue growth and 65 percent net Bincome growth over Q2 2012 “are great numbers for the www.washtrust.com ~ 401-348-1200 or 800-475-2265 quarter,” Walker & Dunlop Chairman and CEO Willy Walker declared last week in a press release showing plenty for the bur- Trusted Advisors Since 1800 geoning commercial real estate lender to be smiling about heading into Labor Day. Originations of $2.6 billion were not only more than the total $2.01 billion for the entire first Commercial Mortgages half of 2012, but also exceeded the entire fig- ure recorded in all of 2009, Walker later $250,000 up to $5 Million recounted in an earnings conference call. Walker was unavailable to discuss the Paul Carey DCU provides Stephen P. Theobald results with the Real Reporter, but Chief borrowers with a wide Financial Officer Stephen P. Theobald 508.804.9573 range of innovative acknowledged his inaugural quarter at the firm David Bromberg financing solutions. We offer competitive after replacing the retiring Deborah Wilson 508.804.9675 rates, outstanding was a solid one for a company now ranked the Leo Barrett service, and have a top Fannie Mae DUS lender in the country for proven track record 2012 and named 10th largest commercial 508.804.9158 of helping clients. lender in the country—third largest on multi- Heather Storme family—by the Mortgage Bankers Association Willy Walker of America. “We’re pleased with the perform- 508.804.9031 dcu.org ance of the quarter . and we feel good about the remaining five Andy Gnazzo Mike Darling Senior Vice President Senior Vice President months,” Theobald says in a phone interview from Walker & Multifamily Finance Multifamily Finance Dunlop’s Maryland headquarters. “Our producers are very busy [email protected] [email protected] right now and it looks that is going to continue to be the case.” (781) 707-9354 (781) 707-9428 Total revenues rose to $90.7 million in Q2 versus $46.7 million for the same three months in 2012, while adjusted net income Ellen Kantrowitz Christopher Rumul Senior Vice President Vice President SM rose 57 percent to $14.5 million. The servicing portfolio of $37.9 billion represents a 116 percent gain over midyear 2012, helping FHA Finance FHA Finance [email protected] servicing fees reach $22.4 million, up 128 percent from Q2 2012. [email protected] (781) 707-9309 (781) 707-9466 BA1.,1*²¬7+('&8WAY About the only tabulations with any negative tinge would be expenses growing by 112 percent to $66.9 million, and a scaling back of loan origination projections for the year from $10 billion continued on page 11 Your Property Our Financing Fannie Mae Freddie Mac FHA Bridge CMBS Life Company Commercial Real Estate Finance Andy Gnazzo Mike Darling Senior Vice President Senior Vice President Multifamily Finance Multifamily Finance [email protected] [email protected] (781) 707-9354 (781) 707-9428 Ellen Kantrowitz Christopher Rumul Senior Vice President Vice President FHA Finance FHA Finance [email protected] [email protected] (781) 707-9309 (781) 707-9466 www.walkerdunlop.com ĂůŝĨŽƌŶŝĂůŽĂŶƐǁŝůůďĞŵĂĚĞƉƵƌƐƵĂŶƚƚŽĞƉĂƌƚŵĞŶƚŽĨŽƌƉŽƌĂƟŽŶƐĂůŝĨŽƌŶŝĂ&ŝŶĂŶĐĞ>ĞŶĚĞƌƐ>Ăǁ>ŝĐĞŶƐĞ͘ 6 THE REAL REPORTER August 12, 2013 Construction Despite Deficit in Cache, Development Industrial Awash in Cash Financing Conveyance 1031 Exchanges Leasing Environmental C. Michael Malm Land Use [email protected] 440-480 McClellan Hwy., East Boston MA BY JOE CLEMENTS Litigation AST BOSTON — At first glance, McClellan Highway here across from Suffolk Downs and South Boston in Whitey Commercial EBulger’s killing fields appear more likely lined with grease Lending than gold, but that is not the way lenders are viewing the land- scape there and in other thriving industrial markets. Among the most substantial financ- SBA Lending ing deals of their ilk through mid-year, Brookline Bank doled out $19.6 million to refi- Mixed-Use nance an air-cargo facility across from Suffolk Downs and People’s United Bank last month Multifamily put up $30 million on One Harbor St., a mod- ern 209,000-sf warehouse in the emerging Office Jay Wagner Seaport District, whose glitz and glamour is largely prohibited by law from invading the gritty neighborhood Retail east of D Street in an attempt to preserve Boston’s working port George “Tony” Hewett from gentrification. [email protected] continued on page 18 At Davis Malm, we make your Skaff Completes NH Sales Assignment business our business.