BOSTON-A joint venture group has received $58 million in acquisition financing for a seven-building, 666,697-sf suburban Boston portfolio. The sum includes nearly $5 million in additional money for planned renovations.
The portfolio, which includes office and R&D space in Bedford, Andover and Billerica, was acquired earlier this month by a joint venture between Cranford, NJ-based Mack-Cali Realty Corp., and Gale International for $53.6 million. The new owners plan to invest about $20 million in capital expenditures, tenant improvements and leasing commissions on the buildings.
Frank Petz, senior director of CBRE|Melody's Boston office who secured the financing for the property's new owner, tells GlobeSt.com that the additional funding is a strong indication that some lenders remain confident of a recovery in Boston's suburban office market. "The beauty of the deal was that the occupancy was so low, yet we were able to provide a relatively high loan to value for the occupancy. That is indicative of certain lenders confidence in the recovery in the suburban Boston office market."
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