WHITE PLAINS, N.Y. & BOSTON--(BUSINESS WIRE)--
Rockwood Capital and Related Beal announced today that their joint venture has completed the sale of One Kendall Square in East Cambridge, MA to Divco West. Terms of the transaction were not disclosed. Rockwood and Related Beal acquired the property from Lincoln Property Company and JER Partners for $211 million in 2006.
One Kendall Square is a nine building portfolio encompassing approximately 670,000 square feet of office, laboratory and retail space along with a 1,574-car parking garage, a nine screen cinema and a dynamic development site. The 7.88 acre transit-oriented campus has six full-service restaurants, a variety of shops, a daycare center, a new fitness center, and excellent access to public transportation.
The property is located at the epicenter of Kendall Square/East Cambridge, a submarket revered around the world as a hub for innovation and entrepreneurship, with more than 200 technology and life science companies operating alongside the world’s top educational institutions and research centers.
Over the course of their ownership, Rockwood and Related Beal invested $75 million in the property’s base building infrastructure, public spaces and tenant improvements. Site upgrades included the addition of small tenant incubator suites for life science start ups, enhanced and expanded food options, the creation of a restaurant hub and the building of amenities such as Cambridge’s busiest Hubway bicycle station and a new fitness center for employees of tenants. These initiatives increased occupancy of the nine-building campus to over 91 percent which resulted in the property's net income more than doubling.
Joe Gorin, Managing Director at Rockwood said, “We believe One Kendall Square is a great example of our ability to create value in a property, and we are proud of the site's transformation into the city's premier science and technology address. The Boston area will continue to be a key target market for Rockwood.”
Tyson Skillings, Rockwood Partner and Portfolio Manager added, “The successful sale of this building showcases our strategy of investing in well-located real estate that provides opportunity to outperform over the long term and offers value to our investors.”
“We could not be more pleased with the performance of the asset, including this significant transaction. Our partner Rockwood Capital shared a consistent vision with us for what One Kendall Square could be, the most successful mixed-use campus in East Cambridge, and to see it through to execution is very rewarding,” said Stephen Faber, Executive Vice President of Related Beal. “Success did not just happen; it was born from a lot of hard work from the entire ownership and management team.”
Today, One Kendall Square is home to an impressive tenant roster with more than 50 quality companies, including Merrimack Pharmaceuticals, Akamai, Nine Point Medical, MIT, Abcam, Next Jump, CRB Consulting Engineers, Invivo Therapeutics, Redstar Ventures, Visterra, Inc., Cogo Labs, Semprus Biosciences and Catabasis.
About Rockwood Capital, LLC
Rockwood Capital, LLC is a real estate investment firm that provides equity capital combined with real estate expertise for repositioning, recapitalization, development and redevelopment of retail, hotel, residential, office and research and development space in key markets throughout the United States. Since 1990, Rockwood and its principals have invested on behalf of their clients approximately $15.0 billion of real estate through nine value-add vehicles and three separate accounts. Today, Rockwood is an 82 person real estate investment firm with offices in San Francisco, CA, White Plains, NY, and Los Angeles, CA and manages a portfolio of approximately $2.9 billion of net equity value in approximately $7.6 billion of gross real estate value. Rockwood’s investors include public and private pension funds, endowments, foundations, insurance companies, fund of funds, high net worth individuals and family offices. For more information, please visit www.Rockwoodcap.com.
About Related Beal
Related Beal is a fully-integrated real estate firm focused on development and investment opportunities in Boston and the surrounding region. Related Beal leverages Related Companies’ international real estate platform with expertise across all assets classes and The Beal Companies’ storied local experience in life sciences, commercial and residential development, property management and investment. Related Beal has developed, and is undertaking the development, of some of the most recognized buildings in the area including The Clarendon and One Back Bay, Lovejoy Wharf and Converse’s U.S. headquarters. For more information on Related Beal, please visit www.relatedbeal.com.
- Real Estate
- Kendall Square