Log in Subscribe Front Page Current Issue Real Briefs Recent Trades Subscribe/Renew Events Advertise Contact Us
Fri, Mar 29
A Compendium of Property & Capital News
Fri
Mar 29

Anchor Line, Northwood Get Nod on Totten Pond Rd. Via Newmark for TA

July 25, 2017 — By Joe Clements
460 Totten Pond Rd, Waltham MA

WALTHAM—Anchor Line Partners and Northwood Investors already know their way around this suburban corporate stronghold, with the pair currently united on two major office properties overlooking Route 128 in 200 Smith St. and Prospect Hill, and now they are reported to be throwing another asset on the CRE pile after submitting the winning bid for Totten Pond Office Park. Listed exclusively by Newmark Capital Markets on behalf of TA Associates Realty, the 300,000 sf of high-end Class B product could approach $52 million via its sale if estimates prove true, the assets being 400, 410 and 460 Totten Poind Rd.

“It’s theirs,” says one CRE professional regarding ALP and Northwood, a declaration backed by other sources tracking the negotiations. Founded by Brian Chaisson and Andrew Maher, ALP has emerged as one of suburban Boston’s top investors, with a specialty for super-sized projects such as repositioning the Cross Point Towers in Lowell and now working with Denver-based Northwood on retrofitting a postal distribution center at 200 Smith St. here into a modern corporate experience on a scale similar to the award-winning Cross Point reclamation. In 2015, the two joined forces to buy Prospect Hill Office Park, that an $101 million purchase of the 480,750-sf development which overlooks Totten Pond Office Park.

Newmark Capital Markets members did not respond to inquiries as of therealreporter.com press deadline, the team led by Robert E. Griffin Jr., Edward C. Maher Jr. and Matthew E. Pullen having launched Totten Pond Office Park earlier this spring minus any pricing guidance. Other members of the team handling the trade are Director James M. Tribble and Associate Director Samantha N. Hallowell. Executive Managing Director Mark Roth is helping with leasing analysis while debt financing options are available through Executive Managing Director David Douvadjian and Senior Managing Director Brian Butler.

Homegrown TA Associates Realty has owned the park since paying $47 million in March 2013, and during its tenure the landlord has boosted occupancy by signing several new tenants, among them prepaid commerce firms CashStar and SavingStar. This year alone the park has welcomed the Accelerated Cure Project and Advantage Resourcing America, the latter group committing into 2022.

TA has also inked renewals with denizens including Aflac and Mass Electric Construction, further ensuring the park remains cash-flowing into the next decade. But there is also “embedded upside” in the opportunity, Newmark outlines via informational materials in circulation that put in-place rents 15.5 percent below current submarket rates. Having 28,000 sf available for lease presently and with 30 percent of the existing leases rolling this decade, Newmark explains the gains are “immediately available” for the next owner.

Originally constructed in the late 1960s and early 1970s, the park underwent an extensive overhaul earlier this decade amounting to over $17 million infused into base building and tenant improvements that have helped complement structural efficiencies such as flexible 20,000-sf floor plates and enough room to house a cafeteria, conference room and fitness center “that ensure a superior tenant experience,” relays the Newmark overview. The largest of the buildings is 460 Totten Pond Rd. at 142,775 sf, followed by 82,075 sf at 410 Totten Pond Rd. and 75,575 sf comprising 400 Totten Pond Rd.

The allure attracting over four dozen tenants of various shapes and sizes is further attributed to Totten Pond Office Park being among the first developments of its ilk along Route 128, providing a superior infill location and plenty of terra firma—15 acres—to house enough automobiles for a generous parking ratio of 3.3 vehicles per 1,000 sf let. Getting on and off Route 128 is also considered easier than for many commuters, Newmark adds.

And the path of progress has been encouraging, Newmark conveys in pointing to 200,000 sf of retail delivered to Waltham over the past 24 months while the office market remains the third largest assemblage in metropolitan Boston, its 10.8 million sf representing 30 percent of Route 128 Central’s inventory. Also, there is an average asking rental rate of $31.24 per sf for Class B product—higher than the Class A rate seen in some communities. Route 128 Central is now in single digits vacancy wise at 9.7 percent after enjoying 114,000 sf of positive net absorption this past year.

For Newmark, the assignment is among a number of high-profile suburban assets the Capital Markets team is juggling right now, others including the expansive Burlington Corporate Center being pitched for Davis Cos., as well as Heritage Point in North Quincy, the Campanelli Cos. retrofit.

Edward Maher Matthew Pullen Robert Griffin Brian Chaisson Andrew Maher