2 Morrissey Boulevard is fully leased to Santander Bank under a long-term lease.
BOSTON—A joint venture of locally-based Accordia Partners and real estate private equity funds managed by affiliates of Ares Management Corp. of Los Angeles has acquired the 2 Morrisey Blvd, office complex here.
The new ownership purchased the property for $110 million, according to multiple published reports. The seller, Beacon Capital paid $72.7 million for the site a few years ago, according to a report in the Boston Business Journal.
The five-building complex at 2 Morrissey that totals of 425,000 square feet of rentable square feet is fully leased to Santander Bank under a long-term lease. Located in Dorchester, the property is across the street from the 20-acre site of the former Bayside Expo Center. Accordia Partners and Ares Management were selected by the University of Massachusetts earlier this year to develop the Bayside Expo Center site.
“This purchase reflects our commitment to and interest in this area. With proximity to transit, the waterfront and the talent assets of UMass Boston, we are confident that this neighborhood is a strong investment,” says Dick Galvin and Kirk Sykes of Accordia Partners.
“This transaction for 2 Morrissey reflects our confidence in the long-term growth and development of the Dorchester neighborhood, especially given the tremendous increase in employment across greater Boston,” says Andrew Holm, partner in the Ares Real Estate Group. “Ares is excited to continue to work with Accordia and other stakeholders to capitalize on this significant opportunity.”
Newmark Knight Frank's Boston Capital Markets team served as advisor on the transaction on behalf of the seller, and its Boston Debt & Structured Finance team represented the buyers in arranging debt financing for the transaction.
In terms of the Bayside Expo Center project announced by UMass Boston in February, Accordia Partners has proposed a mixed-use project of up to 3.4 million square feet at the parcel on Columbia Point.
The agreement calls for a ground lease between Accordia and the university for up to $235 million, with a minimum lease price of $192 million contingent on receipt of necessary approvals. The lease price represents a more than 10-fold return on the university's 2010 purchase price of $18.7 million. In addition, Accordia Partners has committed to a $25-million investment in related infrastructure improvements.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
