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Normandy, a real estate investment management firm, bought the properties on behalf of Normandy Real Estate Fund LP, a private equity fund, and an affiliated co-investment partnership, Normandy Northeast Office Venture Partners LP. The portfolio consists of 13 properties totaling about 2.4 million sf and two development sites in the Northeast, and the deal carries a value of $537.9 million.

The properties include five Northern New Jersey office buildings, five more in suburban Boston and one in that city's CBD, and one each in Washington, DC and Northern Virginia. The assets being acquired weren't specified; Glenborough's website lists the company's New Jersey office holdings as being located in Bridgewater, Parsippany, Warren, Chatham, and Branchburg.

"This transaction brings us a high quality, value-added portfolio of assets in our core investment markets of New Jersey, Boston and Washington, DC," says Jeffrey Gronning, managing principal of Normandy. "It's also an opportunity to further expand our operating platform throughout the region."

Lehman Brothers acted as financial advisor to Normandy. Morgan Stanley was the financial advisor to Morgan Stanley Real Estate on the sale to Normandy, and Skadden Arps, Slate Meagher & Flom LLP and Goodwin Procter LLP served as Normandy's legal counsel.

Lehman Brother also provided mortgage financing for the transaction, and General Electric Real Estate provided preferred equity. Finally, Eastdil Secured acted as the financial advisor to Normandy in connection with the GE preferred equity investment.

With the deal, Normandy's principals have now invested more than $1 billion of equity over the past decade, totaling approximately $4 billion in asset value. The firm recently closed on its current discretionary real estate fund with projected total purchasing power of about $1.8 billion, and continues to target the Northeast and Mid-Atlantic markets of Boston, metro New York including Northern New Jersey, Philadelphia and metro Washington, DC.

Instant Insights /

Normandy Buys Glenborough Assets for $538M

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