Two development parcels sell in a Boston-area Opportunity Zone
JLL Capital Markets has completed the sale and arranged acquisition financing for two contiguous properties in Somerville, which will be developed into life science space
BOSTON, November 2, 2020 – JLL Capital Markets announced today that is has arranged the $48 million sale and $24 million in acquisition financing for two contiguous properties in the Boston community of Somerville, Massachusetts, including a 1.2-acre development site and the leasehold interest in a 252-space parking garage in a Qualified Opportunity Zone.
JLL marketed the property on behalf of several private sellers for the land and a private owner on the leasehold interest. Both assets were purchased by Normandy Opportunity Zone Fund, LP, a fund advised by Columbia Real Estate Management (“CREM”), a subsidiary of Columbia Property Trust. Additionally, JLL worked on behalf of the new owner to arrange floating-rate acquisition financing with Bank of New England.
The 1.2-acre site, known as Boynton Gateway, comprises blocks at 64 and 68 Webster Ave.; 495, 497, 513 and 517 Columbia St.; and 6 Beach Ave. The five-story parking garage is at 481 Columbia. The transit-oriented location is steps from the future Union Square MBTA Green Line station and is at the entrance to the Boynton Yards mixed-use development.
The buyer intends to develop the site into a state-of-the-art life science building. The Somerville market is poised to capture the life science demand coming out of Kendall Square due to its proximity to East Cambridge. The JLL 2020 U.S. Life Sciences Outlook ranked the Greater Boston Area as the No. 1 Life Science cluster in the U.S. Development in the life science space is anticipated to grow, and Boston, along with San Francisco, leads other clusters with respect to development. Demand for Life Science space had already been growing, with COVID-19 accelerating that growth.
The JLL Capital Markets team representing the seller was led by Managing Director Matthew Sherry and Director Michael Restivo, and the JLL Capital Markets team representing the new owner was led by Managing Director Anthony Cutone and Director Henry Schaffer.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of over 92,000 as of September 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Columbia Real Estate Management (“CREM”)
CREM, a wholly owned subsidiary of Columbia Property Trust, Inc. (“Columbia”), is advisor to several funds that were formerly advised by Normandy Real Estate Management, a former real estate developer, owner and manager, and fund manager that was acquired by Columbia in January 2020. Columbia also serves as general partner for these funds and is a joint venture participant with certain of these funds in several development and re-development projects. For more information, please visit columbia.reit/funds.