Novaya Takes 147 KSF of Tech Office Space in Massachusetts
- Feb 01, 2012
February 1, 2012
By Barbra Murray, Contributing Editor
Novaya Real Estate Ventures L.L.C., not yet one month old, has begun to build its portfolio with the acquisition of two office/R&D buildings featuring an aggregate 146,700 square feet in suburban Boston. Novaya acquired the assets, which carry the addresses of 10 & 55 Technology Dr. in Lowell, Mass., from Nordblom Co. in a transaction valued at $10.5 million.
The two, two-story brick buildings sit roughly 30 miles northwest of Boston at the entrance to the 800,000-square-foot Drum Hill Technology Center. Encompassing 57,700 square feet of space on nearly six acres, 10 Technology opened its doors in 1984 and one year later, the 89,000-square-foot 55 Technology made its debut on a neighboring seven-acre parcel. Siemens Corp. has occupied 10 Technology in its entirety for the last 20 years and is committed to the space through April 2017, and C.R. Bard Inc. has a lease for 51 percent of 55 Technology through 2014.
Commercial real estate services firm CB Richard Ellis/New England marketed 10 and 55 Technology on behalf of Nordblom for purchase as single assets — the former with an asking price of $5.9 million — or as a two-property portfolio. Investors flocked to the opportunity.
“The Lowell acquisitions are tremendous initial investments for Novaya,” Peter Carbone, principal at Novaya, said. “The properties provide strong credit and cash flow which our investors prize at this early point in the recovery cycle. The investment also provides additional upside through the lease-up of the vacancy, which is our value-added proposition.”
The timing may be just right for leasing up the extra space, and at prices above in-place rates. According to a report by commercial real estate services firm Grubb & Ellis Co., R&D/flex product “carried the market” in 2011, buoyed by increased demand from local medical device developers, electronics manufacturers and other world-class technology companies. And more of the same is on track for 2012, as per the report. “The R&D/flex market will be the strongest industrial segment, as Boston will continue to benefit from an influx of tenants involved in energy, technology and consumer staples who are attracted to the area’s established industry base and strong labor pool. At the same time, biotech start-ups will receive higher levels of venture capital enabling them to grow.”