"It is done," Cushman & Wakefield broker Mark Roth acknowledges to GlobeSt.com, with the C&W team of Roth, Ty Janney and Ben Finnegan negotiating for the landlord, the Gutierrez Cos. of Burlington. Michael Ippolito of Newmark Knight Frank's Manhattan office was broker for the tenant.
Roth referred questions regarding Aspen's motivations for moving to the company itself. Efforts to contact officials there by press deadline were unsuccessful, but in a financial disclosure recently issued regarding the deal, officials estimated that Aspen will save approximately $1 million a year once the firm's lease at 10 Canal Park in Cambridge runs its course. One observer says there is close to four years remaining on that agreement, while Aspen reportedly struck a seven-year deal for 200 Wheeler Rd. The savings will be break even until the Cambridge lease expires, Aspen CFO Brad Miller indicates in a review of the lease.
"The move not only makes sense from a financial perspective, but we believe it represents a significant upgrade in the quality of our office space and will contribute to improving the profile and operations of Aspen," Miller states. The effort will, however, require a charge of $10 million in the first fiscal quarter of 2008 on a GAAP basis, according to Miller.
One broker who has been tracking the company's space search maintains that Aspen's work force was also geared towards a suburban environment, although Miller did not discuss that aspect while providing initial financial guidance of the undertaking. After several years in the doldrums, Burlington has benefited in 2007 by rising rents in core markets such as Downtown Boston, Cambridge and Central Route 128 communities such as Lexington and Waltham. Another company, Color Kinetics, is moving from Boston to the Burlington Woods Office Park, and brokers say several large requirements are also coming up Route 128 to explore cost-effective options.
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