Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LOWELL, MA-One of the biggest landmark deals left over from 2007 has apparently run out of steam, with sources claiming that Davis Marcus Partners has opted against buying the CrossPoint Towers. The three-building, 1.2-million-sf office complex was slated to trade in the $180-million range.

Citing confidentiality agreements, Davis Marcus co-founder Jonathan Davis declined to discuss the status when contacted by GlobeSt.com, but sources say the intemperate lending climate ultimately led to the deal’s demise. “It’s just a different landscape,” one source tells GlobeSt.com. “The rules have totally changed.” Another industry professional marveled that the parties were able to keep the process afloat as long as they did, with numerous other sales efforts collapsing last summer and autumn under the weight of the deteriorating market.

Sources could not say whether Davis Marcus Partners tried to get the sellers to adjust their pricing from when the commitment was initially made in August, but some opined that the altered lending situation would have required such a concession in order to make the numbers work. CrossPoint is owned by a partnership of Yale Properties USA and DivcoWest Properties. There may have also been an increased equity demand from the buyers, observers note, with loan-to-value ratios adjusting sharply since mid-summer. “It’s very tough to get things done right now,” says one broker who concurs that the CrossPoint pact has succumbed to the dour conditions.

The unfulfilled transaction is the latest in a series of roller-coaster events for CrossPoint, constructed in the 1970s when the Massachusetts computer industry produced such giants as Digital Equipment Corp. and Wang Laboratories. The latter firm, headed by industry icon An Wang, built the erstwhile Wang Towers as a fortress-like campus that established the Interstate 495 North office market. When Wang Laboratories crumbled in the early 1990s, the park was taken over by its lender, which dumped the vacant buildings at auction in 1994 for barely 35 cents per sf. Later trading for $108 million, CrossPoint has since undergone a dramatic rebirth. The good times were briefly interrupted by the recession that hit in 2001, but an aggressive leasing campaign by Yale and Divco has since made it one of the top producing assets in the area in the wake of that technology related downturn.

What the future holds for CrossPoint is unclear. Calls to the brokers at Eastdil Secured who were handling the sale were not returned by press deadline. One investment specialist maintains it is unlikely DivcoWest and Yale will try to find another buyer in the current environment, predicting the group will likely feed off the existing cash flow until the market improves. Right now, says the broker, the sales effort appears to be “colder than a wet haddock.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.