Alvarado, Cahill Broker 60,000SF Deal as 300 Apollo Dr. Hits 100 Percent Occupancy

CHELMSFORD, MA—Dating to 1985, 300 Apollo Dr. could be the newest old building in Interstate 495 North’s office market. There are certainly few as well-received, with a 60,000-sf lease to Axis Communications capping off a gut rehab of the 290,000-sf structure that has brought occupancy to 100 percent from being completely empty just three years earlier.
“It was really the only spec building in this market,” offers Lincoln Property Group SVP Gregory H. Cahill, exclusive leasing agent for longtime building owner USAA Real Estate Advisors. USAA’s bold move to make 300 Apollo Dr. a multi-tenanted building after previously serving as home to Cisco Systems scored a number of commitments handled by Cahill, including a 127,000-sf pact to kick off the campaign and the 60,000-sf lease by Axis to cement the assignment. “The two bookend (leases) were important, and we had some nice smaller deals in between,” says Cahill, who declined to identify the newest arrival due to a request from that firm. Tenant broker and Parsons Commercial Group VP Marci Alvarado was equally vague on the identity of her client, although market sources confirm Axis Communications is the organization in question. The tenant is relocating in April from 100 Apollo Dr. Terms of the lease were also not divulged.

Alvarado would only say the firm is experiencing “rapid growth,” fomenting the need to find an alternative. Besides serving as regional headquarters, 300 Apollo Dr. will also house a state-of-the-art technology training center. High-end finishes and efficient space in the building are accentuated by amenities such as an on-site fitness center, full-service cafeteria and generous parking ratio of five vehicles per 1,000 sf leased, relays Cahill. Savvy sponsorship was also critical to getting leases signed, he adds, with tenants reassured at having a competent ownership in place.

Whatever the formula, Cahill was able to fill a large block of product in spite of a lingering market malaise and national recession. “It’s still spotty,” he says of weak demand during the lease-up phase remaining a challenge. According to CBRE/NE the submarket has a 25.3 percent availability rate for 14.0 million sf of office space after posting negative net absorption of 133,000 sf in 2010. The average asking rent is $14.81 per sf compared to a rate of $19.53 per sf for suburban Boston overall.