A rendering of GE's headquarters.
BOSTON—A joint venture of Alexandria Real Estate Equities, National Development and its private equity affiliate Charles River Realty Investors has signed a deal to acquire the 2.7-acre Fort Point headquarters property of GE in a deal valued at $252 million.
The agreement calls for the joint venture to purchase the 5 and 15 Necco Street buildings from GE and MassDevelopment. Alexandria Real Estate Equities is headquartered in Pasadena, CA, National Development is based in Newtown Lower Falls, MA.
GE has signed a 12-year lease for the refurbished Necco brick buildings for its permanent headquarters space. The two brick buildings include 95,000 square feet of space, with a bistro on the first floor, and will house GE's senior executive team and approximately 250 GE employees.
The vacant parcel is permitted for a new, 12-story building with approximately 297,000 square feet of space. The permits will be assigned to the new owner once the deal closes.
In February, MassDevelopment and GE reached an agreement to sell the Fort Point Channel property. The agreement with the Alexandria-National-Charles River venture will reimburse the Commonwealth for the $87 million spent in connection with luring GE to the Boston Seaport, including the purchase the two brick buildings and land as well as construction and other related financing costs.
MassDevelopment and GE will equally share in the proceeds of the sale exceeding the amount spent by both on the project. As a result, the Commonwealth will receive an additional $11.2 million for a total of approximately $98 million once the transaction closes.
Ann R. Klee, VP, Boston Development & Operations for GE, says, “We are looking forward to moving into our permanent headquarters space in the newly refurbished Necco brick buildings later this year. We appreciate the support we've received from our partners, the Commonwealth of Massachusetts and the City of Boston. We are fully committed to Boston and proud to call it home.”
The GE Foundation will spend approximately $50 million to drive STEM education in Boston public schools, support community health with a focus on the opioid crisis, and promote workforce diversity. To date, GE has already provided more than $15 million in grants in connection with that commitment.
The company will also complete public spaces adjacent to its property, including the Harborwalk and public dock and the renovation of the “green bridge.”
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
