Harrison Street, Bullfinch Partnership Acquire Osborn Triangle from MIT for More Than $1B

CAMBRIDGE, MA—Chicago-based real estate investment firm Harrison Street and partner Bullfinch Companies Inc. of Boston have acquired the Osborn Triangle here from a subsidiary of the Massachusetts Institute of Technology in a deal reportedly valued at approximately $1.1 billion.

The deal for the three-building complex—610 Main St. North, 1 Portland St. and 700 Main St.—totals 676,917 square feet and an associated 650-space parking garage. The transaction was structured with MIT retaining ownership of the land via a ground lease.

Multiple press reports stated that the Hamilton-Bullfinch partnership acquired the properties for $1.1 billion. Each building has been either recently renovated or built and the property is complemented by street-level retailers: Sulmona (Italian restaurant), Café Luna, Revela (an Aveda salon) and Boston Burger Company. The complex is fully leased to seven tenants and includes three anchor tenants: Pfizer, Inc., Novartis International AG, and LabCentral, an incubator for high-potential life-sciences and biotech startups.

Christopher Merrill, Harrison Street’s co-founder, chairman and CEO, said of the acquisition, “We are thrilled to partner with MIT and the Bulfinch Companies to invest in and support one of the most cutting-edge neighborhoods serving the biotech, medical and scientific research and development communities. Harrison Street is committed to providing our tenants and communities we serve with high-quality facilities and world-class amenities and it is a privilege to be part of this vibrant Boston community for the long-term.”

Mark Burkemper, a managing director at Harrison Street, added, “Osborn Triangle is a one-of-a-kind complex serving as a global hub for the life science and innovation communities, supported by high barriers to entry and blue-chip tenant base. The East Cambridge/Kendall Square submarket is very attractive, with vacancy rates of less 1%, and we are excited by the opportunities to continue to enhance this already thriving neighborhood.”

EVP and Treasurer Israel Ruiz explains on MIT’s website that the Osborn Triangle complex was developed by MIT over the past two decades and has helped transform what was a parking lot and a vacant building into an “anchor of the innovation ecosystem in Kendall Square.”

He adds, “This is a great example of the positive impact that MIT’s investment in the area can have. The formation of the joint venture with new investment partners will allow MIT to continue to reinvest in the area surrounding its campus and contribute to a vibrant and inclusive Kendall Square. Through the Kendall Square Initiative, construction is currently underway that will bring a mix of uses to the area, including academic, commercial research, dormitory, market-rate and affordable housing, and retail, as well as a much-needed grocery store that will open later this year.”

Newmark Knight Frank vice chairman Edward Maher, executive managing directors Matthew Pullen and James Tribble and director Samantha Hallowell of NKF’s Boston Capital Markets team, which is led by co-head of U.S. Capital Markets Robert Griffin, oversaw the recapitalization effort in conjunction with NKF executive managing directors Mark Winters and David Townsend.

In addition, NKF’s Boston Debt & Structured Finance team, which is led by executive managing director David Douvadjian with senior managing directors Brian Butler and Timothy O’Donnell and Director David Douvadjian, Jr., represented the buyer in arranging debt financing for the transaction.