R&D facility in Somerville trades for $35.5M
JLL Capital Markets led sales efforts for 35 Medford Street; cites developing submarket and proximity to Cambridge
BOSTON – September 20, 2021 – JLL Capital Markets announced today that it has closed the $35.5 million sale of 35 Medford Street, a three-story office property totaling 58,156 square feet in Somerville, Massachusetts.
JLL marketed the property on behalf of the seller, funds advised by Columbia Real Estate Management (“CREM”), a subsidiary of Columbia Property Trust, and procured the buyer, Synergy Investments and their partners Independencia Asset Management.
Originally built in 1870, 35 Medford Street was recently renovated and encompasses two adjoined north and south buildings that offer 19,400-square-foot floorplates and ceiling heights between 13’ and 18’. The property is fully leased to FormLabs, a cutting-edge 3D printing manufacturer, as their headquarters location and R&D facility.
35 Medford Street is ideally positioned on the Cambridge / Somerville city line and is a short walk to Cambridge’s Kendall Square, one of the world’s most active hubs of research and innovation anchored by MIT and Harvard University. The property is also within walking distance of Somerville’s Union Square and has direct access to downtown Boston via Interstate 93 and McGrath Highway. Additionally, 35 Medford Street has premier public transit access via the MBTA’s Red and Orange lines as well as the new Green Line Extension.
“We are thrilled to acquire this asset with our long-standing partner Independencia,” said Dave Greaney, CEO of Synergy Investments. “We have strong conviction in this location’s potential and great confidence in the dynamic business that Formlabs has built. We’d like to acknowledge JLL for their efforts and expertise in the transaction.”
According to JLL’s Second Quarter 2021 Office Outlook, the Boston and Cambridge office market continues to rebound with demand trending upward. In fact, despite the difficulties of the past 15 months, Cambridge and the suburbs have rents above first quarter 2020 levels and total demand for office space across the Greater Boston area was up 10% in second quarter.
The JLL Capital Markets team representing the seller was led by Senior Managing Director Coleman Benedict and Director Scott Carpenter.
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 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 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.
About Synergy Investments
Synergy Investments is a Boston-based, full-service commercial real estate services firm. To learn more about Synergy, please visit: synergyboston.com.
About Independencia Asset Management
Independencia Asset Management is a real estate asset management firm headquartered in Miami with a regional office in Boston. Since incorporating in the U.S. in 2004, IAM has invested in more than 18 million square feet of core, core-plus and value-add office, retail, residential and industrial assets in 23 states with more than 15 different local operating partners. To date, IAM has invested in over $3 billion worth of real estate assets and their current portfolio consists of approximately $2 billion of assets under management. The 35 Medford building would be incorporated into IAM’s, “Fondo de Inversion Independencia Core US I”, which is a publicly traded fund listed on the Chilean stock exchange. This $150 million open-ended investment vehicle was established in 2017. As of today, this fund has $215 million of assets under management invested in three different states