Kendall Square was acquired from joint owners JE Robert Cos. and Lincoln Property Co. Walter Schmidt, senior managing director in charge of east coast acquisitions for Rockwood, says in a statement announcing the acquisition that "given the asset's unique physical characteristics, discount to replacement cost, and world class location, we view this as an excellent acquisition." Schmidt said the new owners plan to reposition the asset.
Set on a nine-acre campus near the Massachusetts Institute of Technology, Kendall Square was originally constructed in the late 1890's as a manufacturing plant for the Boston Woven Hose & Rubber Co. It was later redeveloped into a mixed-use center comprised of 47% lab space, 39% office space, 11% retail, and 3% storage, and counts among its tenants Genzyme Corp., the Whitehead Institute, Harvard, Amgen, and Charles Draper Labs.
Michael Smith, with Spaulding & Slye's Boston office, which marketed the property for the sellers, says the asset "generated broad investor interest on a global scale. The new ownership will benefit from its strong underlying fundamentals and unrealized potential." Rockwood and the Beal each own more than 50 properties in the Bay State.
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