The two buildings, totaling 127,732 sf, are located near North Station and South Station. 186 Lincoln Street, located adjacent to South Station, is a nine-story office building totaling 67,968 sf. Built in 1904, it was fully renovated in 1986. 225 Friend St., located adjacent to North Station, is an eight-story office building totaling 59,763 sf. Built in 1913, it was fully renovated in 1985.
Gary J. Lemire, senior vice president/partner of CB Richard Ellis/Whittier Partners, represented the seller, Meridian Investment Management. The acquisition represents the third venture between Praedium and Essex River Ventures. Previously, the firms purchased Manor Parkway, a three-building 121,500-sf office/flex development in Salem, NH, and Great Woods Office Park, a two-building office park totaling 57,769 sf in Mansfield, MA.
Philip Tager, director of the Praedium Group notes that the firm anticipates that both properties will benefit from the completion of the Big Dig--the massive highway project in the city--as well as other infrastructure improvements and amenities which he believes "will enhance the appeal of the North Station and South Station submarkets."
"Boston has been the center of nation's leading financial services firms, technology companies, and educational and healthcare institutions," adds John Fenton, president of Essex River Ventures. "It continues to lead these industries, and therefore, we see continued demand for office space in Boston."
According to Spaulding & Slye Colliers' most recent statistics, the overall availability rate for office space in the city's North Station submarket is still at 18% while the rate in the South Station is nearly 11%, up from 9% the previous quarter.
Essex River Ventures is a real estate investment and asset management firm specializing in office, research and development and industrial properties on the East Coast. The Praedium Group is a real estate investor focusing on under-performing assets throughout North America, with $3.5 billion in total investments comprised of 33 million sf of commercial space and 28,000 multifamily units.
Praedium is currently investing in its most recent $465-million real estate private equity fund, Praedium Fund V. This equity will be leveraged to acquire $1.5 billion in properties. The fund will invest in mid-cap assets throughout the US and Canada in the $10- to $70-million range, targeting multifamily, office, retail and industrial properties.
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