JLL arranges joint venture equity and $300M construction loan for Cambridge office project
40 Thorndike, the only fully available office opportunity in the high growth market of East Cambridge
BOSTON, Sept. 23, 2021 – JLL announced today that its Capital Markets group arranged debt and equity financing for the redevelopment of 40 Thorndike, a 475,000-square-foot mixed-use project with office, residential and retail uses in East Cambridge, Massachusetts.
JLL worked on behalf of the borrower, a joint venture between Leggat McCall Properties and Granite Properties, to secure the $300 million fixed-rate construction loan through Bank OZK. JLL also secured joint venture equity for the project through CBRE Global Investors.
The redevelopment of 40 Thorndike will focus on quality and sustainability, with the project seeking LEED Gold Certification as well as an improvement in energy consumption standards of 20% over American National Standards Institute recommendations, a green roof, rainwater harvesting features and a high-performance building envelope. Upon completion, the 20-story project will offer 421,000 square feet of Class A office space, 11,000 square feet of street-level retail and 48 affordable apartment units. Amenities will include a fitness space, restaurant space, childcare, a shared conference/community center and a bike room with adjoining shower and locker facility. The development team continues to meet regularly with the community to provide updates on construction as they work toward a building occupancy goal of Fall 2023.
40 Thorndike is positioned in East Cambridge within walking distance of Kendall Square, Cambridge Crossing and Downtown Boston. Given the proximity to MIT and Harvard University, East Cambridge has become known as a preeminent global innovation hub, attracting more than 300-plus technology, life science and other innovative companies that are drawn to the access to talent and the opportunity to collaborate. The site also has convenient vehicular access to Storrow Dr., Memorial Dr., Interstate 93, the Massachusetts Turnpike and connectivity to Boston Logan International Airport, just a 15-minute drive from the project.
East Cambridge is a high-growth market with office rents increasing more than 130% since 2010, higher than any other global market. During this same timeframe, the region has maintained a near-zero percent vacancy rate. The majority of the under-construction supply is slated for lab use, making 40 Thorndike the only fully available office opportunity in East Cambridge.
JLL’s Capital Markets team representing the borrower was led by Executive Managing Directors Riaz Cassum and Trey Morsbach and Senior Managing Directors Brett Paulsrud and Jim Curtin.
“As tenant demand from large tech tenants increasingly shifts to the east coast in search of talent and quality lifestyles, East Cambridge and 40 Thorndike are poised to capitalize on this demand,” Paulsrud commented. “We are proud to be a part of this exciting redevelopment and help facilitate Leggat McCall’s and Granite’s vision for this innovative project.”
JLL’s Capital Markets group 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 and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 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 $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 92,000 as of June 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Leggat McCall Properties
Founded in 1965, Leggat McCall Properties is a leading real estate owner, developer and service provider to corporate, educational, healthcare and other clients in the Greater Boston Area. Over the past 10 years, LMP has had a leadership role in over 42 million square feet of project development, representing more than $10 billion of investment. The company has executed on 15 projects over $200 million, 50 over $50 million, and has also developed or acquired approximately $3 billion in assets as principals, including research and life science, mixed-use, office, and residential properties. The firm has a dominant presence in the rapidly growing life sciences, higher education and healthcare industries and serves many of the area’s top universities, healthcare systems and biotech companies, including Novartis Institutes for BioMedical Research, Draper Laboratory, Harvard University, Massachusetts Institute of Technology, and Brigham & Women’s Hospital.
About Granite Properties
Granite Properties is a privately held commercial real estate investment, development and management company founded in 1991. Granite owns more than 10 million square feet of high-quality office space in Dallas, Houston, Atlanta, Denver, Southern California and Nashville. Granite is an established investor, developer and manager with a focus on sustainable, high-quality projects. More than $7.7 billion in real estate transactions and more than 28 million square feet of real estate development and acquisitions have been completed by Granite. Current plans for acquisition and development projects in Atlanta, Boston, Dallas, Houston and Southern California are valued at over $1 billion. Granite focuses on creating extraordinary customer experiences through mixed-use environments, rich in amenities, customer-centric service, and innovative wellness features. The firm has been named as one of Fortune Magazine and Great Place to Work Best Workplaces for the last nine consecutive years. For more information, visit: www.graniteprop.com.