The acquisition of the 78% leased office building at 980 and 990 Washington St. in Dedham brings Everest's New England portfolio of office, retail, industrial and flex space to 64 buildings totaling 4.84 million sf.
Steve McDonnell, regional manager for Everest in Boston, tells GlobeSt.com that the offering brought out a number of bidders but it was the buyer's reputation as a deal closer that helped Everest acquire the property.
"We liked the location, the tenant mix was good and we saw an upside on leasing," McDonnell says of the reasons behind the acquisition. Vacancy in the submarket is just under 17% and absorption has been on the upswing this past year, market reports show.
As part of the acquisition, Everest plans to spend $5 million on infrastructure upgrades and tenant improvements. The firm also plans to add a gym to the building for its corporate tenants, which include General Electric Capital, Sallie Mae, Charles River Capital, Wellesley Information Systems, the Massachusetts Board of Real Estate Appraisers and Mulberry Child Care, McDonnell says.
The 11-year-old privately owned firm has been on a Bay State buying spree since last year when it acquired four Boston-area buildings, including one in the city's Bulfinch Triangle, for $37.5 million. Earlier this month, firm also acquired Paragon Towers at 233 Needham St. in Newton. And two buildings at 333 and 337 Turnpike Rd. in Southborough from New Boston Fund Inc. for $16.7 million.
The Dedham Executive Center transaction was handled for the seller by Jim McCaffrey, Peter Joseph, Chris Phaneuf and Sarah Lagosh, all formerly with Trammell Crow's Boston office. The brokerage team, which recently joined Eastdil Secured following Trammel Crow's merger with CB Richard Ellis, also procured the buyer.
Financing for the property was arranged by Mike Marcone of Sentivany & Marcone, of Quincy, through Countrywide Commercial Real Estate Finance of New York.
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