WALTHAM, MA—American Realty Advisors of Glendale, CA has sold a nearly 295,000-square-foot three-building office complex here for $116.7 million to the building's largest tenant—the Massachusetts General Physicians Organization.

The office complex is located at 10, 40, and 52 Second Ave. and consists of 294,663 square feet of office space. American Realty Advisors had owned the building since April 2007. The company acquired the complex from The Beal Cos. LLC for an undisclosed price, according to the Boston Business Journal.

Gregory Pauly, chief operating officer of the Massachusetts General Physicians Organization, confirmed the property's purchase for $116.7 million to Globest.com. In a prepared statement, Pauly says, “We already lease more than 100,000 square feet in the building, so it made more sense to purchase than to continue to lease the space.”

The Massachusetts General Physicians Organization is a multi-specialty medical group dedicated to excellence and innovation in patient care, teaching and research that works in partnership with the Massachusetts General Hospital and in cooperation with Partners HealthCare.

“There is currently tremendous investor interest in high-quality Boston area office assets and this is driving prices to a premium,” states American Realty Advisors president Scott Darling in announcing the property sale. “Investors are willing to stretch for well-located premium assets with long term income stability. With a favorable market climate and our strategic management of the asset, American was able to achieve a favorable disposition execution. This was clearly the ideal time to sell this property.”

Prior to the most recent sale, American Realty successfully extended the lease term with the existing anchor tenant. The asset was 94% occupied at time of sale. In addition to Massachusetts General Physicians Organization, National Grid is a major tenant at the property.

“We stabilized a steady stream of income and significantly enhanced the property's value during our ownership,” says Darling. “This increased and stable NOI was a key factor in strengthening the value of the asset.”