UMass Building Authority Signs Lease for 3.4M SF Campus Project
The 99-year ground lease will bring UMass $235 million and has the potential to foster 3.4 million square feet of mixed-use development at the property.
BOSTON—The redevelopment of the former Bayside Expo Center reached a new and significant milestone as partners in the project, including the UMass Building Authority, signed a definitive agreement on a long-term lease for the 20-acre site that will pave the way for a major mixed-use development at the campus.
The UMass Building Authority announced today it had finalized lease terms with Boston-based Accordia Partners and an affiliate of the Real Estate Group of Ares Management Corp. of Los Angeles. The 99-year ground lease will bring UMass $235 million and has the potential to foster 3.4 million square feet of mixed-use development at the property. The UMass Building Authority announced in February the selection of Accordia and Ares to develop the former Bayside Expo Center site.
“The Bayside development is a game-changer for our students and faculty,” says UMass Boston interim chancellor Katherine Newman. “This agreement moves us one giant step closer to bringing new private sector research partners, internship providers, and job opportunities in construction, retail and services to Columbia Point. We eagerly await the next milestones and look forward to collaborating closely with Accordia Partners on campus, community and business engagement.”
Closing of the transaction and exchange of funds is anticipated to occur after Accordia and Ares receive all necessary regulatory approvals, which is expected to take approximately 24 months. Because the university’s acquisition of the property in 2010 utilized tax-exempt bonds, use of revenue generated by the university through the long-term ground lease is restricted to qualified capital projects approved by the UMass Board of Trustees.
“We appreciate the commitment that Accordia and Ares have demonstrated by agreeing to lease terms that maximize the present value return to UMass and for being willing to invest in complementary off-site infrastructure,” says Victor Woolridge, chair of UMBA, which oversees the planning, financing, construction and renovation of university facilities.
“Among the many benefits to UMass Boston of the lease and development of the Bayside property is a significant infusion of revenue to fund the long-term goals of the campus,” adds UMass president Marty Meehan, who in 2017, with the support of the UMass Board of Trustees, requested that UMBA monetize the Bayside Property for the benefit of UMass Boston. “We are pleased to see the project moving forward to the next stage.”
Last month, Accordia Partners and real estate private equity funds managed by affiliates of Ares Management Corp. of Los Angeles reportedly acquired the 2 Morrisey Blvd, office complex from Beacon Capital for $110 million.
The property is across the street from the former Bayside Expo Center. At the time of the purchase, Dick Galvin and Kirk Sykes of Accordia Partners, said, “This purchase reflects our commitment to and interest in this area. With proximity to transit, the waterfront and the talent assets of UMass Boston, we are confident that this neighborhood is a strong investment.”