The Blackstone Group is selling a 1.1 million-square-foot office park in the greater Boston area to a pair of Boston-based owner-operators.
The New York-based private equity and real estate giant is amidst selling New England Executive Park, a 10-building suburban office park in Burlington, Massachusetts, to a joint venture between Charles River Realty Group and National Development. Data provider Real Capital Analytics is listing the price as approximately $215 million. Blackstone owns the office park through its Equity Office subsidiary.
Built in 1985 and located 12 miles outside of Boston, the asset currently is 86 percent occupied. Tenants include aerospace development firm BAE Systems, the General Service Administration, front- and middle-office investment management systems provider Charles River Systems and biopharmaceutical analysis firm Decisions Resources.
In a keynote speech at the PREA/IPD US Property Fund Index launch in February, Blackstone’s global head of real estate Jon Gray told attendees that his firm has been an active buyer of suburban office buildings while the industry typically has been averse, but he added that he expected to see an increased interest in such properties as fundamentals continued to improve over the course of the year. “I think you’ll see values of some of the stuff that’s been out of favor begin to rise,” he added.