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BOSTON-One of the city’s most entrenched healthcare institutions has divested two buildings, with Triple Net Properties taking control of 15 Kneeland St. and 260 Tremont St. via the sale-leaseback process in a deal valued at $116 million. The assets were owned by Tufts-New England Medical Center through a subsidiary, NEMC Real Estate Corp.

The 14-story structures are the 155,000-sf Biewend Building and the 98,000-sf Tupper Building. The well-located properties are used as medical laboratory, office and treatment space, housing such operations as TNE’s administrative functions, the New England Eye Center and the Adult Orthopedic Clinic. All but two floors of the Tupper Building are used for lab functions, considered among the most attractive product types in the current CRE climate.

“We had a significant amount of interest,” Grubb & Ellis Co. broker Philip Giunta tells GlobeSt.com, but Triple Net, based in Santa Ana, CA, beat out the cadre of local and national suitors. Giunta, who represented the sellers, declined to discuss specifics of the deal, as did officials from Triple Net beyond unveiling the 10-year leaseback provision. According to information provided to GlobeSt.com, however, the Biewend Building traded for $54.9 million, whereas the Tupper Building fetched $61.1 million.

TNE has had a presence in Downtown Boston for decades. The medical giant has owned 15 Kneeland St. and 260 Tremont St. since the 1980s, and will continue to occupy all of the space as part of its 10-year leaseback arrangement. Both buildings date to 1924 and were overhauled in 1985 to accommodate the office/research requirements. The assets are located near the city’s Chinatown and Theater Districts, areas enjoying substantial investment and new construction of residential, office and hotel product.

A wholly owned subsidiary of NNN Realty Advisors, Triple Net Properties specializes in TIC ownership structures. The firm and affiliates now manage more than 37 million sf of real estate, including 9,000 apartment units, with a total value of $5.1 billion. Financing for the Boston investments was arranged through PNC Bank by Joseph Byers of Commercial Realty Capital.

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