THE DAVIS COMPANIES AND PRINCIPAL REAL ESTATE INVESTORS SELL THE CENTER AT CORPORATE DRIVE TO SPEAR STREET CAPITAL
Campus achieved impressive leasing success following transformative repositioning under TDC’s and Principal’s ownership
BURLINGTON, MA – October 11, 2017 – Following the successful leasing and significant repositioning of The Center at Corporate Drive, located at 10, 25, 30 and 35 Corporate Drive in Burlington, MA, The Davis Companies (TDC) in joint venture with Principal Real Estate Investors (PREI) today announced it has sold the four-building, 487,000 square foot contemporary office campus to Spear Street Capital. The campus was 94% leased at time of transfer, validating the appeal of the ownership’s efforts to create a more dynamic campus with centralized and enhanced amenities.
TDC and PREI purchased The Center at Corporate Drive in September 2013, with a significant capital improvement plan, including more than $8 million in renovations. Working with the acclaimed architectural firm, CBT, the joint venture renovated the park into a premier Class-A campus featuring a state-of-the-art amenities hub and extensive outdoor green space and patio. New capital improvements included: a 7,850-square foot cafeteria with flexible conference space; a 2,100-square foot fitness center with a yoga room, new showers and locker facilities; and a 4,500-square foot outdoor patio with green space and numerous collaboration areas with Wi-Fi connectivity.
TDC’s leasing efforts at the property have helped enliven the Burlington submarket by attracting leading companies and talent to the area. The campus is just 15 miles northwest of Boston on 47 beautifully landscaped acres at the intersection of Route 3A and Route 128, and offers views of Boston’s skyline. This ideal location provides easy access to the Burlington Mall, Lahey Medical Center, and a variety of hotels, retail and restaurants. Current tenants include the world headquarters of: Everbridge, Endurance International Group, ClickSoftware, and the regional offices of: Liberty Mutual Insurance, Health Edge, Taiwan Semiconductor Manufacturing Company, Torchlight, Santhera Pharmaceuticals, Cornerstone Financial, ST Microsystems, GE Ionics and Witt/Kieffer, to name a few.
“This sale of the four existing office buildings completes Phase 1 of the venture’s investment. We now begin Phase 2 by constructing 270 apartment units on the last land parcel in the park. We worked closely with the Town of Burlington to plan a vibrant new housing complex. This investment is exciting not only for us, but for our new neighbor, Spear Street Capital, as it will create even more vitality within the park,” said Cappy Daume, Managing Director at The Davis Companies. “We are confident that Spear Street Capital will be an excellent steward of the office buildings, continuing to improve the campus and driving further toward its full potential as a premier business destination in Burlington along Route 128.”
TDC and PREI are developing a 270-unit multifamily building adjacent to The Center at Corporate Drive. This development will provide the town with high-quality housing when completed in 2019, and will contribute to the well-rounded environment created here.
“We are excited to be continuing our joint venture relationship with The Davis companies on this high-quality, multi-family development,” said Rob Klinkner, Managing Director-East for Principal Real Estate Investors. The residences will have tremendous linkages to nearby retail and recreational amenities as well as employment centers within Burlington. Principal is thrilled to be a part of such a well-designed project that will help meet the demand for high quality for-rent product.”
Newmark Knight Frank represented TDC and PREI in this transaction.
TDC is well-known for its repositioning expertise, which has attracted top companies to office buildings across the Eastern U.S. Among the numerous repositioning projects that TDC has recently completed are: The Xchange at Bedford, an eight-building, approximately 475,000 square foot campus in Bedford, MA; the Union Trust Building, a 460,000-square foot historic landmark and mixed-use business destination, in Pittsburgh, PA; CrossPoint at Valley Forge, a 272,360-square-foot, LEED Gold-certified and Energy Star-rated building with modern amenities, in Wayne, PA; The Westport Center for Health, a 38,000-square foot, Class-A medical office campus that represents the largest collection of medical providers in Westport, CT; 67 South Bedford Street in Burlington, MA, a four-story, 176,886 square foot office building; and, One Cabot Road in Medford, MA, a four-story, 308,954 square foot building just four miles from Boston.
About The Davis Companies
Committed to excellence in both investment performance and operations, The Davis Companies is an integrated real estate investment, development and management firm headquartered in Boston that has invested more than $4 billion in gross asset value through real estate equity, debt, and fixed-income securities. A unique combination of capital markets, development and management expertise allows The Davis Companies to nimbly tackle complex and contrarian opportunities. Directly, and with its valued partners, The Davis Companies currently owns a real estate portfolio of approximately 12 million square feet across the Eastern United States.
About Principal Real Estate Investors
Principal Real Estate Investors manages or sub-advises $74.7 billion in commercial real estate assets*. The firm’s real estate capabilities include both public and private equity and debt investment alternatives. Principal Real Estate Investors is the dedicated real estate group of Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group®.
*As of 30 June 2017