Triple Net Completes $116M Sale-Leasebacks

BOSTON-One of the city’s most entrenched healthcare institutions has divested two buildings, with Triple Net Properties taking control of 15 Kneeland St. and 260 Tremont St. via the sale-leaseback process in a deal valued at $116 million. The assets were owned by Tufts-New England Medical Center through a subsidiary, NEMC Real Estate Corp.

The 14-story structures are the 155,000-sf Biewend Building and the 98,000-sf Tupper Building. The well-located properties are used as medical laboratory, office and treatment space, housing such operations as TNE’s administrative functions, the New England Eye Center and the Adult Orthopedic Clinic. All but two floors of the Tupper Building are used for lab functions, considered among the most attractive product types in the current CRE climate.

“We had a significant amount of interest,” Grubb & Ellis Co. broker Philip Giunta tells GlobeSt.com, but Triple Net, based in Santa Ana, CA, beat out the cadre of local and national suitors. Giunta, who represented the sellers, declined to discuss specifics of the deal, as did officials from Triple Net beyond unveiling the 10-year leaseback provision. According to information provided to GlobeSt.com, however, the Biewend Building traded for $54.9 million, whereas the Tupper Building fetched $61.1 million.