Nordblom Co. Closes on $212M CRE Purchase

BURLINGTON, MA-Accentuating a busy start to the 2007 CRE sales market, an abutter has snagged one of suburban Boston’s top investment prizes, the 158-acre Sun Microsystems campus. The Nordblom Co. and affiliate Nordic Properties paid $212 million for One Network Dr., which encompasses 800,000 sf of existing office space and has permits in place to construct another 570,000 sf.

“It’s a significant step for the Nordblom Co.,” VP Greg Anderson says in acknowledging that the real estate firm has closed on the eight-building asset, located adjacent to Nordblom’s 140-acre Northwest Park. In a related action, Sun Microsystems has inked a lengthy leaseback commitment for 450,000 sf, providing a measure of stability as remaining space is repositioned to accommodate multiple tenants. The sales process had generated considerable speculation about how large a presence Sun would retain, and the final outcome was on the high end of industry estimates.

Not only is the commitment a boon to Burlington, the leaseback by the Santa Clara, CA-based technology firm was “very appealing” to Nordblom, says Anderson, helping justify the pricing paid to secure the property. The aggressive bid was needed to beat back a tide of competition, with several firms said to have eclipsed the $200-million level. Brokers for the deal at Jones Lang LaSalle did not provide specifics, but managing director Michael Smith characterized investor interest as “amazing,” especially given the complexities of the deal such as the leaseback component.