Newbury Line Seen Reaping $175M-Plus: Eastdil Selling Portfolio for Taurus, UrbanMeritage

updated Tuesday, July 5th 7:35PM
BOSTON—An assemblage of 23 prized properties concentrated along the Hub’s famous Newbury Street could fetch $175 million and possibly north of that estimate, according to industry experts. As revealed on Monday at therealreporter.com, owners Taurus Investments and UrbanMeritage have opted to divest a portfolio acquired by the Boston-based partnership during the past five years, hiring Eastdil Secured to find a buyer for the entire package.

“That’s the target,” one source familiar with the holdings tells therealreporter.com in predicting the properties will draw interest globally. “It’s probably going to be the highest-profile retail (listing) to go on the market in the country this year,” relays the source who further characterizes the listing as a “generational opportunity” that will be viewed as a rare chance to grab a critical mass of properties on a thoroughfare recognized globally.

Eastdil officials were unavailable to discuss the strategy as of press deadline. Therealreporter.com’s original story on the listing noted that the platform was launched in 2006, ultimately leading to more than $105 million spent to buy the assets from a disparate ownership base, many having held the small- and mid-sized properties for decades. The transactions were primarily in increments under $10 million. Taurus and UrbanMeritage have since invested considerable capital and energy upgrading the properties and filling them with an impressive array of internationally known retailers who have further solidified Newbury Street’s reputation.

While declining to discuss specifics, Taurus and UrbanMeritage principals Peter Carbone and Michael Jammen offered therealreporter.com a prepared statement on the sales effort, explaining that: “We have been able to create a significant amount of value for our investors and our partners over the past few years, and they feel this is a good time to harvest the assets,” and adding that, “We remain committed to Newbury Street, and look forward to pursuing additional opportunities with new investors and partners.”

Among the retailers occupying space in the properties being peddled include Ben Sherman, the blues Jean Bar, Madura, Marc Jacobs, Pinkberry, Scoop NYC and Jack Wills. The portfolio encompasses 102,000 sf of retail, 36,000 sf of boutique office space and 50 luxury residential units, plus 55 parking spaces, an especially valued element in the densely populated Back Bay.

One veteran of the Newbury Street commercial real estate scene concurs with other views that the portfolio is unique and should garner widespread interest. “They’ve got the whole street covered,” the source says of the assets, with holdings on virtually every block along the mile-long stretch that runs between Arlington Street and Massachusetts Avenue.

Addresses being offered up run from 71 to 329 Newbury St. In between are 81, 85, 91, 119, 144, 154-156 (pictured), 160, 172, 177, 179, 220, 234, 236, 286, 288, 299 and 301 Newbury St. There are also a few assets just off the main stretch, including 234-236 Clarendon St., 283 Dartmouth St. and 899 Boylston St.

Boston’s Back Bay did see its share of pain during the national recession, but as with much of Greater Boston, the recovery has been quicker than other parts of the country, and many of the vacancies which sprung up on Newbury Street during the dark days have since been filled. “It always comes back,” says the Newbury Street CRE veteran spoken to who credits the retail strip’s vast reputation for its resiliency.

Sources also say they anticipate the transaction will be an outright sale, although the possibility exists that the owners could retain an interest under the right circumstances. And although the $175 million range is deemed as a viable goal, the portfolio is being pitched minus an asking price, as indicated in the original story posted on Monday. It also appears the properties will be sold en masse versus individually or in smaller units. “That’s the real value,” says one source.

Eastdil Secured’s Boston team includes Brian Barnett, Peter Joseph, Sarah Lagosh, James McCaffrey and Christopher Phaneuf. The Newbury Line assignment is just one of several major listings being marketed by the Boston office, with others including Boston’s 33 Arch St. and Exchange Place at 53 State St., the 40-story Financial District tower owned by Brookfield Office Properties. On the suburban front, Eastdil is marketing Unicorn Park in Woburn and The Campus at Marlborough in Marlborough, and recently completed the sale of Hayden Woods in Lexington.