Deal Tracker: German Funds Trade Downtown Office Building

70 Franklin St.in Downtown Boston traded for $42.1 million.

BOSTON—Deka Immobilien has acquired the 70 Franklin St. office building here from Munich-based international asset management firm GLL Real Estate Partners for $42.1 million. The 70 Franklin St. office building totals 85,977 square feet and is currently 91% leased. An NGKF Boston Capital Markets team, led by U.S. head of capital markets Robert Griffin, vice chairman Edward Maher and executive managing director Matthew Pullen, oversaw the transaction on behalf of GLL Real Estate Partners. The property’s eight –tenant roster is anchored by TIAA-CREF. Ground-floor retailers at the Class B building include Jos. A. Bank and Papyrus. “70 Franklin’s timeless architecture combines with its flexible floor plates, open office layouts and modern building systems to create one of Boston’s premier Class B buildings,” says Maher. “As a result, the asset boasts exceptional leasing momentum with tangible upside potential in Boston’s booming Downtown district.” He adds that the property benefits from the wealth of recent activity throughout Downtown Crossing that has resulted in more than $2.4 billion being invested in the area in the last decade. German investment has been strong in Boston. In May, Deka Immobilien acquired 175 Federal St ., a 17-story, 227-365-square-foot office building, also known as the Fiduciary Trust Co. building, for $139 million from Blackstone. Earlier this year German real estate investment management firm Union Investment Real Estate GmbH paid Skanska USA $452 million for 101 Seaport Blvd. and $150 million to Related Beal for the Converse headquarters at One Lovejoy Wharf. INVESTMENT SALES NORWOOD, MA—KBS has sold the 169,000-square-foot 825 University Ave. office building in Norwood, MA to Hilco Global for $26 million. The fully occupied two-story building is the corporate headquarters for Xcerra and operates as Illinois Tool Works’ research and development production space. The Class-A office building is adjacent to University Station, a 2-million-square-foot mixed-use development anchored by Target and Wegmans. “National interest in this transaction was high and very competitive,” says Camille Renshaw, senior director of Stan Johnson Company’s New York City office, who brokered the transaction for both parties. “The buyer pool extended beyond the usual suspects and included multiple 1031 exchangers, large institutions, and international funds.” MARLBOROUGH, MA—Nordblom Company reports it has sold 450 and 500 Donald Lynch Blvd, in Marlborough, MA to Atlantic – Fulcrum Realty, LLC, a joint venture between Atlantic Management Corp. and Fulcrum Real Estate Partners. The two high-tech flex buildings are currently 92% leased with 9,521 square feet to be leased in 450 Donald Lynch Boulevard.  With the completion of a major capital improvements plan for both buildings, leasing activity has significantly increased, Nordblom reports. The recent 30,000-square-foot lease signing of New England Cryogenics Center at 500 Donald Lynch Blvd. has brought the building to 100% leased. The recent renewal and expansion of SENKO Advanced Components totaling 19,600 square feet, as well as WaterSep BioSeparations Corp.’s 15,000-square-foot deal, has brought 450 Donald Lynch Blvd. to 84% leased. The sale price was $11.5 million, according to land records. Brockton-based HarborOne Bank provided an $8.6-million mortgage, reports Banker & Tradesman. “The success of these buildings is indicative of the vibrancy in this Marlborough submarket,” states Og Hunnewell, EVP of Nordblom Co. “We are pleased to be conveying these assets to this exceptional buyer.” LEASING CHESTNUT HILL, MA—Life Time has leased 115,000 square feet at The Bullfinch Companies’ Atrium Center here. With the deal in place, Bullfinch has renamed the LEED-certified property Life Time Center. The planned mid-2017 opening in Chestnut Hill will represent the third Life Time destination in the Boston market, including Life Time Athletic Boston Metro West in Framingham, which opened earlier this month and Life Time Athletic Westwood, which opened in 2015. Construction has begun on the Life Time Center project. “Bulfinch is extremely proud to have Life Time as its anchor tenant at the new Life Time Center,” says Eric Schlager, CEO at Bulfinch Properties. “Life Time brings a unique, 360-degree approach to health, wellness, rejuvenation and entertainment that is completely aligned with our vision for a one-of-a-kind wellness center in Greater Boston. With Life Time as our anchor tenant and our rebranding, we are confident that we have developed the most attractive option for medical users in the suburban arena.” Life Time Center is a 286,000-square-foot mixed-use asset prominently situated on Route 9 East. The building features large, efficient floor plates, a sunlit atrium, and a more than 1,000-car free parking garage. Bulfinch and Newmark Grubb Knight Frank (are finalizing medical leases and will continue to market the medical offices at Life Time Center on third and fourth floors, which can accommodate medical and lab users of varying sizes. NGKF’s executive managing director Frank Nelson and Bulfinch’s SVP of leasing Michael Wilcox are leading the leasing team for the medical offices at Life Time Center. HIRES BOSTON—Mayor Martin J. Walsh has appointed Gregory Rooney acting commissioner of The Property Management Department for the City of Boston. Rooney replaces outgoing commissioner John Hanlon, who has been appointed assistant superintendent of operations for the Boston Public Schools (BPS). In his role as commissioner, Rooney will serve in the Operations Cabinet and lead the city’s management, maintenance, repairs and security for the City’s municipal buildings. The Property Management Department also manages and maintains the coordinated street furniture program throughout the downtown areas, as well as provides technical assistance, scheduling and management of special events at City Hall and Faneuil Hall. Prior to accepting the role of Commissioner, Rooney served as the director of Enforcement for the Boston Transportation Department. He also served as the deputy commissioner for transportation in the City of Boston’s Commission on Affairs of the Elderly. Rooney brings with him more than 20 years of experience with the City of Boston.