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Sources Say $180M CrossPoint Sale is Dead

LOWELL, MA-The three-building, 1.2-million-sf complex is among suburban Boston's most recognized office parks.

By Joe Clements | Updated on February 13, 2008

LOWELL, MA-One of the biggest landmark deals left over from 2007 has apparently run out of steam, with sources claiming that Davis Marcus Partners has opted against buying the CrossPoint Towers. The three-building, 1.2-million-sf office complex was slated to trade in the $180-million range.

Citing confidentiality agreements, Davis Marcus co-founder Jonathan Davis declined to discuss the status when contacted by GlobeSt.com, but sources say the intemperate lending climate ultimately led to the deal’s demise. “It’s just a different landscape,” one source tells GlobeSt.com. “The rules have totally changed.” Another industry professional marveled that the parties were able to keep the process afloat as long as they did, with numerous other sales efforts collapsing last summer and autumn under the weight of the deteriorating market.

Sources could not say whether Davis Marcus Partners tried to get the sellers to adjust their pricing from when the commitment was initially made in August, but some opined that the altered lending situation would have required such a concession in order to make the numbers work. CrossPoint is owned by a partnership of Yale Properties USA and DivcoWest Properties. There may have also been an increased equity demand from the buyers, observers note, with loan-to-value ratios adjusting sharply since mid-summer. “It’s very tough to get things done right now,” says one broker who concurs that the CrossPoint pact has succumbed to the dour conditions.

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