HFF announces $205M financing of The District Burlington, the Inner Suburbs most walkable and amenitized mixed-use environment
BOSTON, MA – October 5, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announces the $205 million financing of The District Burlington, a first-class mixed-use park comprising over one million square feet of office and retail buildings in Burlington, Massachusetts.
The HFF team worked on behalf of the borrower, affiliates of Charles River Realty Investors, National Development and AEW Capital Management, to secure the seven-year, fixed-rate permanent loan through a major institutional life insurance company.
The District Burlington is located adjacent to Route 128/Interstate 95 and the Burlington Mall, only 15 miles northwest of Boston. The property was repositioned and rebranded through the complete redesign of the park infrastructure and the development of a 30,000-square-foot retail cluster anchored by Island Creek Oyster Bar, Tuscan Kitchen and Market, and TD Bank.
Improvements to the park also include the addition of a 350-space parking garage, the repositioning and expansion of Building 700, and the creation of a first-rate walkable amenity package including a new Residence Inn by Marriott, an 8,000-square-foot fitness center, and OMMMSpace that houses yoga and meditation classes. Enhanced connectivity is provided through a Zagster Bike Share Program, walking trails and a private shuttle to and from the Alewife MBTA station in Cambridge. The District Burlington is 85 percent leased to a diversified roster of more than 40 regional, national and global tenants, including BAE Systems, Black Duck Software, Charles River Development (no affiliation with Charles River Realty Investors) and Decision Resources.
The HFF debt placement team representing the borrower included senior managing director Fred Wittmann, managing director Greg LaBine and senior associate Robyn King.
“The borrower did a fantastic job repositioning the asset to become a best-in-class mixed-use park with the best amenity package available in the market,” said LaBine. “That led to increased tenant demand and higher rents, which when coupled with top institutional sponsorship within the borrower group, made this a compelling opportunity for the lender.”
About Charles River Realty Investors
Founded in 2006, Charles River Realty Investors LLC is a private equity real estate investment firm that employs the extensive operating and investment experience of its team to make value-added real estate investments on behalf of its institutional clients in a closed-end fund format. The firm and its principals have successfully acquired and/or developed over 25 million square feet of real estate with a value of over $4 billion. The firm is currently investing the $290 million Charles River Realty Fund III, L.P.
About National Development
For over 25 years, National Development has been one of the most active real estate development firms in Massachusetts. Specializing in commercial office, mixed-use, retail, industrial, multi-family, hotel and senior housing projects, National Development and its affiliates have developed over 28 million square feet of space. National Development is also one of the region’s largest property management companies and currently manages over 9 million square feet of commercial space and 2,400 residential units. For more information, visit www.natdev.com or follow @nationaldevelop.
About AEW Capital Management, L.P.
Founded in 1981, AEW Capital Management, L.P. (AEW) provides real estate investment management services to investors worldwide. One of the world’s leading real estate investment advisors, AEW and its affiliates manage over $57 billion of property and securities in North America, Europe and Asia (as of September 30, 2016). Grounded in research and experienced in the complexities of the real estate and capital markets, AEW actively manages portfolios in both the public and private property markets and across the risk/return spectrum. AEW and its affiliates have offices in Boston, Los Angeles, London, Paris, Dusseldorf, Hong Kong, Singapore, and Sydney as well as additional offices in nine European cities. For more information, please visit aew.com.
HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.
HFF Senior Managing Director
HFF Managing Director
HFF Director, Public Relations