Davis and Principal Real Estate sell Charles Park for $815 million

Davis and Principal Real Estate sell Charles Park for $815 million
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Cambridge, Massachusetts According to The Davis Companies, Alexandria Real Estate Equities, Inc. On One Charles Park and One Rogers St. (Charles Park) for $815 million from a joint venture controlled by Davis and Principal Real Estate Investors. The existing two buildings will be redeveloped by Davis and Alexandria into a class 400,000 s/f life sciences project.

Charles Park is located on more than three acres of land along the First St. Davis acquired its ownership stake in Charles Park in December 2020, by recapitalizing with major real estate investors who valued the property at $467 million.

“The success of the Charles Park investment is yet another result in a series of successful collaborations between Davis and major real estate investors,” said Kaby Dome, President of Asset Management at Davis. “By pairing our team’s creative development vision and operational capabilities with the director’s deep resources, focus and flexibility, we have been able to position Charles Park as a top-tier life sciences opportunity, in what is undoubtedly the best life sciences sub-market in the country, which will offer long before most of the life sciences line The next competitive pipe.”

With only one year to go between the initial recapitalization of Davis/major property investors and this sale, the implementation of the Charles Park investment reflects a high level of proficiency in the successful transfer of the main tenant in Charles Park, Pegasystems Inc. , which have occupied more than 50% of the building since 2012 and have rights to remain in the property after 2030.

“By working closely with Pegasystems on a solution that enabled them to determine the right size for their corporate footprint, we were able to move quickly toward paving the way for asset redevelopment,” said Michael Cantaluba, chief development officer at Davis. “We look forward to working collaboratively with Alexandria to complete the conversion of this asset.”

Kendall Square / East Cambridge is adjacent to the Massachusetts Institute of Technology and the Charles River and is home to a world-renowned group of laboratories, leading academic and research institutions and corporate headquarters. The center of the life sciences boom, Kendall Square is often called “the most creative square miles on the planet.”

Newmark, led by Co-Chairman of US Capital Markets Robert Griffin, represented the major real estate investors in the December 2020 recapitalization and the Real Estate Investors/Davis Partnership in the 2021 sale.

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