Davis and Principal Real Estate sell Charles Park for $815 million
Cambridge, MA According to The Davis Companies, a subsidiary of Alexandria Real Estate Equities, Inc. has acquired One Charles Park and One Rogers St. (Charles Park) for $ 815 million from a joint venture controlled by Davis and Principal Real Estate Investors. Davis and Alexandria are converting the two existing buildings into a life science project with 400,000 s / f class A.
Charles Park is located on more than three acres along the coveted First St. Corridor in East Cambridge and includes a parking garage with 656 spaces. Davis acquired his stake in Charles Park in December 2020 through a recapitalization with Principal Real Estate Investors, which valued the property at $ 467 million.
“The success of the Charles Park investment is the result of another successful collaboration between Davis and Principal Real Estate Investors,” said Cappy Daume, Davis’ head of asset management. “By pairing the creative development vision and execution skills of our team with the extensive resources, focus and flexibility of Principal, we have recognized Charles Park as a Class A life science opportunity in arguably the best life science submarket in the Position a country that will deliver results well ahead of the bulk of the upcoming competition pipeline. “
With only a year passed between Davis / Principal Real Estate Investors’ initial recapitalization and this sale, the execution of the Charles Park investment reflects a high level of efficiency in the successful relocation of Charles Park’s anchor tenant Pegasystems Inc., who is more inhabited had more than 50% of the building since 2012 and had a right of residence beyond 2030.
“By working closely with Pegasystems on a solution that would enable them to properly size their own corporate footprint, we were able to quickly pave the way for redevelopment of the asset,” said Michael Cantalupa, Davis’ chief development officer. “We look forward to working with Alexandria to complete the transformation of this asset.”
The Kendall Sq./East Cambridge neighborhood is adjacent to MIT and the Charles River and is home to a world-renowned cluster of laboratories, leading academic and research institutions, and corporate headquarters. Kendall Square, the epicenter of the life science boom, has often been referred to as “the world’s most innovative square mile”.
Newmark, led by Robert Griffin, Co-Head of US Capital Markets, represented the Principal Real Estate Investors on the recapitalization in December 2020 and the Principal Real Estate Investors / Davis partnership on the sale in 2021.