Jumbo Capital Management, LLC, gained a foothold in the city, by acquiring two, well-located and fully occupied office properties in the popular life sciences and technology hub. NGKF Capital Markets represented the seller, Coda Development, a suburban Boston developer based in Needham, and secured the buyer in the $7 million transaction.
"We were attracted to the property's outstanding rent roll and its extremely desirable location within Cambridge along the MBTA Red Line and only a short walk from Davis Sq.," said Jay Hirsh, managing partner and founder of Jumbo Capital. "We always enjoy working with the Newmark Grubb Knight Frank team, which kept the train on the track throughout this transaction."
Greg Cohen, managing principal of Coda Development, added, "NGKF did a great job representing us and working with both parties to achieve favorable terms."
Renamed the Campus Street Tech Center, the properties at 9 Camp St. and 29 Camp St. total 21,139 s/f and are leased to MC10 Inc., an innovative maker of high-performance electronic devices, and mobile marketing firm Tapjoy Inc. MC10 occupies the entirety of 29 Camp St. (3,739 s/f), while each firm occupies a floor at the 17,400 s/f, two-story 9 Camp St.
The office buildings, featuring brick and beam interiors, are conveniently located five minutes from the Davis Sq. Red Line station and offer on-site parking.
The Cambridge office submarket recorded the lowest vacancy rate at 6.2% in the Greater Boston area in the first quarter, according to NGKF research. Over 30,000 square feet of positive absorption was posted during the first quarter, after 2014 ended with 218,126 square feet of positive absorption. As of the first quarter, there were only five properties in the Cambridge submarkets that could accommodate tenants with space needs of 25,000 square feet. With no development in the pipeline, vacancy is expected to continue shrinking and rental rates to remain increasing for the foreseeable future.
"This is a singular opportunity to get a stabilized and unique property in this neighborhood, which has demonstrated strong leasing velocity this year," said Leigh Freudenheim, executive managing director with NGKF Capital Markets in Boston, who negotiated the transaction along with senior managing director Anthony Biette. "Given the urban nature of the neighborhood and little development on the horizon, the property also offers great long-term potential for commercial or residential redevelopment."