JLL completes sale of creative office campus in suburban Boston on behalf of The Davis Companies
BOSTON, July 9, 2018 – JLL’s Capital Markets completed the sale of The Xchange at Bedford, a 479,000-square-foot creative R&D and life science campus situated near amenity-rich Burlington, at Route 3 and minutes from Route 128. The firm represented the seller, The Davis Companies. The buying partnership was Jumbo Capital Management, a value-add real estate firm, and Sound Mark Partners, a debt and equity investment management firm. The buyer paid $107.75 million for the eight-building, state-of-the-art technology campus and JLL will remain as the property’s exclusive leasing agent on behalf of Jumbo Capital.
The JLL sales team was led by Managing Director, Frank Petz, Senior Vice President, Matthew Sherry and Associate, Scott Carpenter. JLL Managing Directors, Matthew Daniels and Christopher Lawrence will continue to handle the project’s leasing.
At the time of sale, The Xchange was 89 percent leased to five tenants and anchored by iRobot’s 272,000 long-term lease. iRobot has expanded by nearly 89,000 square feet in the last three years and, in 2017, extended its term through April 2030.
“Working closely with Gensler Architects to reimagine the park, we dramatically improved the overall image of the property and the individual buildings, as well as the sense of community for the tenants” stated Matt Katz, Vice President of Asset Management for The Davis Companies. “This included centralizing the amenities, adding green space and gathering areas, a glass exterior for more natural light and significantly enhancing the parking ratio via a land swap with the Massachusetts Department of Public Works. Through these efforts, we were able to better serve the needs of our tenants and create an opportunity to expand and extend the lease of our principal tenant, iRobot”.
“In a very short period of time, Jumbo Capital Management has successfully acquired over 4.1 million square feet across asset classes, bringing Jumbo’s assets under management to $775 million,” said Jumbo Senior Managing Director Brad Spencer.
Jumbo’s Director of Acquisitions Adam Fischer added: “The Xchange at Bedford is a well-located R&D and lab campus. Anchored by iRobot’s mission-critical headquarters, the campus is home to innovation across multiple industries. With Cambridge as the center for biopharma, we believe Route 3 is becoming the hub for robotics and artificial intelligence.”
“There was a broad and deep interest in The Xchange, which further proves the high level of demand for quality product in the Boston suburbs,” said Petz. “The Davis Companies did a great job modernizing the asset for flexible tenant use, including technology, biotech and life sciences.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2017 alone, the firm’s 2,000 Capital Markets specialists completed $170 billion in investment sale and debt and equity transactions globally.
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About Jumbo Capital
Jumbo Capital Management, LLC (“Jumbo Capital”) is a privately held, value focused, commercial real estate investment firm located in Quincy, MA. The firm was founded in 2009 by Jay Hirsh, who left Boston-based New Boston Fund, Inc. to pursue investment opportunities brought about by the “great recession”. Jumbo has since grown to over 40 people with leadership having a combined 80+ years of commercial real estate experience. Jumbo Capital invests in all property types and focuses on a range of transactions from $5-$300 million. Currently, the firm manages over 4.1 million square feet of commercial real estate in the Greater Boston area valued at $775 million dollars.
About Sound Mark Partners
Sound Mark Partners, LLC is an investment management company established in September 2013 by a team of investment professionals, who previously worked together at CBRE Capital Partners, where together they managed approximately $800M of equity on behalf of US and foreign pension plans, hedge funds, FOFs and mutual funds. Sound Mark Partners, LLC has an open-end investment fund known as Sound Mark Horizons, LP (“Horizons Fund” or the “Fund”). Because of its open-end structure, the Fund is able to accept capital on an ongoing basis. Sound Mark Partners’ investment strategy is to continue to make informed risk/reward commercial real estate debt investments throughout an ever-changing market cycle. The Fund focuses on investing primarily in US based commercial real estate debt, inclusive of multifamily, office, industrial, retail, hotel and mixed-use properties. Jenna Gerstenlauer is the sole Managing Partner and is joined by Managing Director Ji Won Sin, Managing Director, Jen Reinglass, Chief Financial Officer, Lauren Walsh and Director, Parul Narain.
About The Davis Companies
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 combination of capital markets, development and management expertise allows The Davis Companies to nimbly tackle complex opportunities. Directly, and with its valued partners, The Davis Companies currently owns a real estate portfolio of approximately 12 million square feet of office, multifamily, retail, hospitality, light industrial, healthcare and bioscience properties across the Eastern United States. For further information, visit www.www.thedaviscompanies.com.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with nearly 300 corporate offices, operations in over 80 countries and a global workforce of 83,500 as of March 31, 2018. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit ir.jll.com.