It is unclear what prompted Flatley to make the decision to retreat on Braintree Hill, especially at a time when suburban office parks are becoming a darling among yield-starved investors. Prominent assets throughout Route 128 are being rushed onto the sales block to meet the demand, and Braintree Hill was considered among the top prospects available.
Several estimates had the park trading in the $120-million range. "That was the goal," acknowledges one industry professional. Flatley had retained Cushman & Wakefield to sell Braintree Hill, which has six buildings located on a 24-acre expanse offering sweeping views of Downtown Boston and the Blue Hills. Rents there are estimated by one source to run between $20 per sf and $24 per sf on a gross basis.
Officials at C&W would not comment on the status of Braintree Hill when contacted by GlobeSt.com, and Flatley did not return a phone call by press deadline. Sources insist, however, that the park is not on the market.
Flatley has built a diverse real estate empire in Massachusetts since his company's founding in 1959, developing more than 10,000 apartments, hotels, industrial product, medical facilities, office space and retail, and during the past decade has deftly pruned those holdings, usually by product type. More than a dozen hotels were sold to Starwood Capital in 1997. Flatley also divested his apartment portfolio for more than $500 million to residential REIT Aimco of Denver. In both instances, the sales came at seemingly the top of the market, leading many to subsequently use Flatley's actions as a barometer of real estate trends. "No one is tuned in better," says one broker who nonetheless maintains the shift on Braintree Hill should not be viewed as a commentary on the office market.
"If anything, it's a compliment" to the market, claims the source, opining that Flatley may see more value in retaining the park than selling into an improving climate. Indeed, there has been talk that the veteran developer may be mulling a speculative office building at Braintree Hill to meet the increased demand. Flatley has publicly said he wants to construct another building at Crown Colony Office Park in Quincy, and he continues to own office properties elsewhere in Greater Boston, including the Schraffts Center in Boston's Charlestown district.
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