KBS senior vice president, Shannon Hill tells GlobeSt.com that the three-story, 96% leased building, located just over a mile from Harvard Square, offered a prime Cambridge address in an area poised to capture the spill-over from tenants priced out of the East Cambridge market.
"We feel comfortable with the long term prospects of it being an infill location," Hill says of the property, which sold at a cap rate of about 7%. "Long term, there is demand and rents in the East Cambridge market are climbing very high. That could be a positive for West Cambridge."
The fully-renovated property also appeals to tenants who want "the cache of a Cambridge address without the cost," he says.
The seller was listed on record with the Middlesex County Registry of Deeds as 625 Mount Auburn Street LLC. Principals in that firm could not be reached by GlobeSt.com for comment.
The acquisition was the second for KBS in Cambridge and its seventh in Massachusetts. The firm also owns 725 Concord Ave. in Cambridge, 80 Central St. in Boxborough, 825 University Ave. in Norwood, One Research Dr. and Westboro Executive Park, both in Westborough and the nine-building Nagog Office Park in Action. The Norwood property is held under the recently formed KBS REIT.
Gary Lemire of CB Richard Ellis' New England office handled the transaction for the seller. KBS was self represented.
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