Westbrook Partners of New York City and Dallas-based Crow Holdings Inc. delivered the five-story building at 1293 Eldridge Parkway in September 1999, just three months after Aspen Technology of Cambridge, MA penned a 12-year lease for the entire building. Still feeling the tech slump, the e-business solutions provider has 99,036 sf on the sublease market at $17.50 per sf for three-year deals.
Richard Rudd in the local office of Granite Partners tells GlobeSt.com that the listing garnered several offers, but was on the market eight months. He says the plan was always to sell the asset once it was fully leased. The property came to market briefly in 2000 and was pulled.
A source close to the deal says potential buyers were not motivated to put a bid on the building until after Aspen Technology received a $100-million investment in August 2003 from Advent International, a private equity firm with North American headquarters in Boston.
Rudd says the buy is likely a long-term hold for Franklin Street Partners, which isn't facing any immediate capital improvements due to the building's age. The eight-acre asset sits in a submarket with high barriers to entry and eight million sf of class A inventory with one of the city's lowest vacancy rates, 4%, according to a recent report by CBRE/Trione & Gordon in Houston. Class A rent averages $23.36 per sf, about 30 cents more than comparable CBD space.
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