Davis & Principal Real Estate Investors Sell Charles Park in Cambridge for $815 Million to an affiliate of Alexandria Real Estate Equities

Davis & Principal Real Estate Investors Sell Charles Park in Cambridge for $815 Million to an affiliate of Alexandria Real Estate Equities
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BOSTON – Davis Corporations announced that it is a subsidiary of Alexandria Real Company
Estate Equities, Inc. on One Charles Park and One Rogers Street (Charles Park) for $815 million from a joint venture controlled by Davis and Principal Real Estate Investors.

Davis and Alexandria will redevelop the two existing buildings into a Grade A life sciences project of approximately 400,000 square feet.

Located on more than three acres of land along the highly sought-after First Street lane in east Cambridge, Massachusetts, Charles Park features a 656-seat parking garage. Davis acquired its ownership stake in Charles Park in December 2020, by recapitalizing with a major real estate investor who valued the property at $467 million.

Cappy Dome

“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 first-class opportunity for life sciences, in what is undoubtedly the best life sciences submarket 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 recapitalization of Davis/Major Real Estate Investors and this sale, the execution of the Charles Park investment reflects a high level of proficiency in the successful transfer of Charles Park’s principal tenant, Pegasystems Inc. (Nasdaq: PEGA), which has occupied more than 50% of the building since 2012 and has rights to remain on the property beyond 2030.

“By working closely with Pegasystems on a solution that enabled them to determine the appropriate 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.”

Adjacent to the Massachusetts Institute of Technology and the Charles River, the Kendall Square/East Cambridge neighborhood is home to a range of world-renowned 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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