Jeff Gronning, a Normandy managing principal, tells GlobeSt.com that the 400 Fifth Ave. building, which was acquired from on behalf of Normandy Real Estate Fund LP, will undergo more than $1 million in renovation work in the next few months. Although the scope of that renovation has not yet been determined, Gronning says it will include the building's facade, common areas and landscaping.
The acquisition, the second by Normandy in the past four months, reflects the investment group's continued confidence in the suburban Boston office market, Gronning notes. "The combination of outstanding location and robust tenant demand offers tremendous upside potential and is a great fit for the fund's investment requirements."
The property is currently about 60% occupied but with several leases expiring in September, that rate will drop to between 30% and 40%. Gronning says the firm expects the renovation work along with an aggressive marketing campaign to enable Normandy to quickly reposition the asset.
The seller, Value Enhancement Fund, was represented by Peter Joseph, Jim McCaffrey and Chris Phaneuf, all with the Trammell Crow Co., which also procured the buyer. The property is the second Boston area acquisition for the New Jersey investment group. Normandy also acquired a 129,781-sf office building at 150 Newport St. in Quincy in December, Gronning says Normandy is also in the process of negotiating a portfolio buy in the Boston area.
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