Avison Young Recaps 540 KSF in Boston
- Aug 16, 2011
August 16, 2011
By Nicholas Ziegler, News Editor
Taking advantage of its ability to lock in good financing, Avison Young announced on Monday that it had recapitalized three commercial properties totaling 540,000 square feet. Located in Downtown Boston, as well as the suburbs of Andover and Wilmington, the properties have seen quite a bit of action lately, with 180,000 square feet of new leases signed within the last 12 months.
The Boston city and surroundings continue to be a hot growth area, according to a Jones Lang LaSalle research report. Net absorption is expected to rise to 1.19 million square feet in the next year, and class A overall asking rents are predicted to grow to $49.03 per square foot. Both of these factors, combined with the report’s assertion that “certain [Boston] submarkets well outpace the region and the nation,” point to a very good time for Avison to recap.
“Due to the value-oriented acquisition pricing and hands-on management, these assets weathered the economic storm in 2008 and 2009,” said John Fenton, principal and managing director for Avison Young’s New England region. “In conjunction with the new leasing, each asset was recapitalized to provide a more competitive financial position in the marketplace.”
The assets, 299-301 Ballardvale Street in Wilmington/Andover, and 201-207 South Street and 52-56 Roland Street in Boston, were acquired between 2006 and 2007 and underwent capital-improvement upgrades to reposition the properties during the initial phase of ownership. The real estate services firm restructured each deal to include new leasing activity, an infusion of fresh equity and term modifications on more than $50 million of first-mortgage loans to extend maturities and provide additional capital to fund the cost of new leasing.