White Plains, New York-based Rockwood Capital has sold One Kendall Square in East Cambridge, Massachusetts to DivcoWest for approximately $395 million, according to data provider Real Capital Analytics. Rockwood originally acquired the property, along with Related Companies’ Boston-based affiliate Related Beal, from Lincoln Property and JER Partners for $211 million in 2006.
Over the course of their ownership, Rockwood and Related Beal invested $75 million in the property’s base building infrastructure, public spaces and tenant improvements. Site upgrades included the addition of small tenant incubator suites for life science startups, the creation of a restaurant hub and the building of amenities such as a new fitness center for employees of tenants. These initiatives increased occupancy of the nine-building campus to more than 91 percent, which resulted in the property's net income more than doubling, according to a statement by Rockwood.
“We believe One Kendall Square is a great example of our ability to create value in a property, and we are proud of the site's transformation into the city's premier science and technology address, “said Joe Gorin, managing director at Rockwood, in a release. “The Boston area will continue to be a key target market for Rockwood.”
One Kendall Square further expands the Boston portfolio of San Francisco-based DivcoWest, an active investor in technology-related real estate properties. The property is similar to recent acquisitions by the firm including the Davenport in Cambridge and several buildings in the Seaport District. DivcoWest also owns property in nearby Westford, Bedford and North Reading.
The nine-building campus at One Kendall Square encompasses approximately 670,000 square feet of office, laboratory and retail space, along with a 1,574-car parking garage, a nine-screen cinema and a development site. The property is home to more than 50 tenants, including Merrimack Pharmaceuticals, Massachusetts Institute of Technology, CRB Consulting Engineers, Invivo Therapeutics, Redstar Ventures and Semprus Biosciences.