HFF secures $345 million in financing for Charles River Plaza North adjacent to Massachusetts General Hospital in Boston
BOSTON, MA – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has secured $345 million in first mortgage and mezzanine financing for Charles River Plaza North, a 354,594-square-foot, state-of-the-art office/research building adjacent to and long-term leased by Massachusetts General Hospital (MGH) in Boston, Massachusetts.
HFF worked on behalf of the borrower, The Davis Companies and Marcus Partners, Inc., developers and owners of the property, to secure a $245 million, fixed-rate loan with UBS and a $100 million mezzanine loan with TIAA-CREF. Loan proceeds will be used to refinance an existing loan HFF arranged for the borrower in 2007.
Charles River Plaza North is located at 185 Cambridge Street within the larger 630,000-square-foot Charles River Plaza mixed-use development adjacent to the campus of MGH in Boston’s Beacon Hill neighborhood. This location is across the Charles River from the Massachusetts Institute of Technology and Harvard University and is convenient to mass transit with an MBTA red line station about three blocks away. Completed by the current ownership in 2005, Charles River Plaza North is leased in its entirety to The General Hospital Corporation, the parent of MGH and subsidiary of Partners Healthcare System. Additional tenants within the development include Whole Foods, CVS and the Schepens Eye Institute. Charles River Plaza North is used as a lab/research facility with five distinct research teams each occupying a floor of the building – the Center for Systems Biology, the Center for Regenerative Medicine, the Center for Computational and Integrative Biology, the Wellman Center for Photomedicine and the Center for Human Genetic Research.
The HFF debt placement team representing the borrower was led by senior managing director Riaz Cassum.
“HFF has had a long history with Charles River Plaza and was involved in securing both the original construction financing for the project in 2003 as well as the permanent loan in 2007,” said Cassum. “We are extremely proud to be involved with such a world class project that represents Boston’s strong presence in the field of medical research.”
About The Davis Companies
Committed to excellence in both investment performance and operations, The Davis Companies is an integrated real estate investment, development and management firm headquartered in Boston that has invested nearly $3.0 billion in gross asset value through real estate equity, debt, and fixed-income securities. A unique combination of capital markets, development and management expertise allows The Davis Companies to nimbly tackle complex and contrarian opportunities. Directly, and with its valued partners, The Davis Companies currently owns and manages a real estate portfolio of 12 million square feet across the Eastern United States. For more information on The Davis Companies please visit http://www.thedaviscompanies.com/.
About Marcus Partners, Inc.
Marcus Partners is a value-oriented real estate investor, operator and redeveloper based in Boston, Massachusetts, with regional offices in Norwalk, Connecticut and Secaucus, New Jersey. The firm invests in real estate and related assets through its fully discretionary $250 million Marcus Capital Partners Fund II, L.P., pursuing a mix of strategic and opportunistic investment strategies. Its current portfolio includes more than five million square feet of office, medical office, research and development, warehouse and industrial properties located along the East Coast. For more information about Marcus Partners, please visit http://www.marcuspartners.com.
TIAA-CREF (www.tiaa-cref.org) is a national financial services organization with $866 billion in total assets under management (as of 3/31/2015) and is the leading provider of retirement services in the academic, research, medical and cultural fields.
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.