JV Acquires Raytheon's 361,000-SF HQ

LEXINGTON, MA-Patriot Partners acquired the three-building, 361,000-sf headquarters of Raytheon Co. at 141 Spring St. The financial details of the deal were not disclosed.

Steve Murphy, executive managing director in the Boston office of Insignia/ESG, represented Raytheon in the transaction, and procured the buyer, Patriot Partners, a joint venture among Framingham, MA-based Atlantic Management, Concord, MA-based Mohawk Partners and New York City-based Peabody Global Real Estate Partners.

Murphy tells GlobeSt.com that it took about three to four months to identify the buyer, which in the current market is considered a fairly quick turnaround. Murphy attributes the success of the deal to the fact that this 95-acre complex is a “high profile unique asset.” He notes that there was a “wide level of interest” from both local and national buyers.

Joe Zink of Atlantic Management points out that the fact that the property is centrally located near Route 128 sparked a lot of interest. “We certainly feel this is a unique campus which will be attractive to future users on a long term basis,” he says.

The campus consists of a 50,000-sf building, a 103,000-sf building and a 206,000-sf building. Murphy says that the buyers will do some planning before they put the space on the market. “They want to look at it as an overall site but they will be offering the space to tenants,” says Murphy, adding that the buyers will probably not be looking for a single user again but will break up the space. He notes that it is still unclear what the asking rent will be for the space but the area average hovers around $30 per sf gross.

Defense and aerospace contractor Raytheon broke ground this month on its new 150,000-sf headquarters in Waltham Woods Corporate Center in Waltham, MA. The new building is under construction and is expected to be completed at the end of the year.