The structure "will provide our investors with a solid return from day one," NBF chief investment officer Jim Kelleher says. The sale-leaseback "is a perfect fit" for NBF's diversified strategy in that it offers near-term stability, Kelleher says.
Abt Associates CFO David Loeser also praises the arrangement. "This transaction was favorable for us from a financial point of view and allows us to focus our resources on growing our core business of research, consulting and technical assistance," he says. Abt has been at the property since 1965 after founder Clark Abt designed the complex in what is now known as the Alewife district.
The Boston office of Grubb & Ellis marketed 55 Wheeler St. for Abt Associates and also procured the buyer. G&E has orchestrated other sale-leaseback deals locally, including a $116 million pact last year involving two Boston office/research buildings and Tufts Medical Center. Broker Phil Giunta, who spearheaded that and the Abt deals, tells GlobeSt.com that the concept is a good solution for firms seeking to use the equity in their real estate while retaining occupancy.
Having launched the 55 Wheeler St. marketing effort last spring, G&E had to guide the offering through a volatile debt crisis that doomed dozens of transactions in the region. The difficult environment did delay the sale, says Giunta, who credits its survival to a cooperative attitude by Abt, NBF and the G&E sales team, which includes George Nugent, Jennifer Nicholson and Ann Newman.
"Today, the name of the game is stick-to-itness," Giunta says. "You have to stay very focused and I'm really proud of the way everyone worked together to get this done." Giunta praises NBF for sticking to its terms even as conditions worsened and Abt for patience through the process. "It made a lot of sense for both sides," he says of the final agreement.
Expanded several times, 55 Wheeler St. now has more than 125,000 sf of space assembled around a courtyard setting. Located within a half-mile of the Alewife Red Line subway that connects to Downtown Boston, 55 Wheeler St. abuts another NBF asset, 70 Fawcett St. That asset combined with 55 Wheeler St. gives the firm an assemblage of 10 acres in one of the region's most promising commercial districts. While not offering specifics, NBF does cite the development potential of the combined parcels, and Giunta says that element was an advantage that other suitors could not match. "There is a clear density benefit," he says.
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