Built mostly in the 1980s and early '90s, the buildings are owned by a joint venture of locally based TMG Partners and MacLean, VA-based JER Partners, the private equity arm of JE Roberts Cos. The value of the seven-year lease deal is approximately $40 million, according to TMG Partners.
TMG Partners and JER Partners purchased 1.4 million sf in 21 buildings in the Bayside Technology Park in 2005 and 2006 from Renco Properties of Sunnyvale for approximately $200 million. The first and largest piece, 1.02 million sf in 16 buildings for $131 million, was approximately 60% leased. The second piece, approximately 400,000 sf that was more fully leased, was acquired for $72 million.
TMG Partners chief executive Michael Covarrubias told GlobeSt.com around the time of the acquisition that the business plan called for flipping the fully leased buildings to investors in order to lower its cost basis and then lease up and sell off the remainder.
This week, TMG partner Brian Fleming tells GlobeSt.com that it has sold off approximately 300,000 sf of fully leased space and the remaining 1.1 million sf is approximately 73% leased. The asking lease rate range is $0.85 to $1.10 per sf per month. The pro forma hold for the investment is three to five years, Covarrubias said.
The buildings that Boston Scientific will now occupy are 47900 Bayside Pkwy. (122,092 sf), 47421 Bayside Pkwy. (45,576 sf), 47281 Bayside Pkwy. (23,436 sf), 47201 Lakeview Blvd. (75,920 sf) and 47211 Lakeview Blvd. (93,748 sf; the expansion space). Other notable tenants occupying the TMG-JER portfolio at Bayside include Mattson Technology, Themis Computer and Micron Technology.
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