Quincy, MA Campanelli, in partnership with the private equity firm TriGate Capital of Dallas, TX, has sold Heritage One and Heritage Two in two separate transactions totaling $63.9 million. Foxrock Properties has purchased the 173,000 s/f Heritage One, currently over 50% occupied by State Street Corp., while Grander Capital Partners has purchased the 183,000 s/f Heritage Two. Heritage Two is 93% leased to a tenant roster anchored by Massachusetts Teachers Association, Healthcare Financial, G-Force Shipping, Pharmalogics Recruiting and Stran Promotional Services.
2 Heritage Drive - Quincy, MAThe NGKF Capital Markets Boston team led by U.S. head of capital markets Robert Griffin, vice chairman edward Maher, executive managing director Matthew Pullen, senior managing director Judy Ravech and associate director Samantha Hallowell oversaw the transaction of the class A office assets on behalf of Campanelli. Newmark Grubb Knight Frank’s leasing and debt teams, led by executive managing directors Michael Frisoli and David Douvadjian, respectively, were also instrumental to the transaction’s success.
“Campanelli successfully executed on every redevelopment vision it had for these previously vacant buildings and has blown expectations out of the water, generating unprecedented leasing velocity in the south market. The firm has created significant value not only for the property, but also for the entire Quincy submarket,” said Pullen.
Previously occupied by Boston Financial Data Services (BFDS) and CitiStreet, Heritage One and Two sat vacant for over five years before Campanelli’s purchase in June 2013. Within walking distance of the North Quincy MBTA Red Line “T” and four stops from South Station, Campanelli saw the rising rents in Boston as an opportunity to create an urban campus appealing to companies being pushed out of the Seaport and Financial District with rental rates at half the price. To date, 85% of the current tenants at Heritage Two have relocated from locations in downtown Boston or the Seaport District. The Massachusetts Teachers Association, a long-time fixture in Boston’s Beacon Hill neighborhood, moved into Heritage Two after almost 40 years downtown.
“The Heritage Landing success is testament to Campanelli’s vertically integrated platform and ability to identify favorable market trends. We utilized our in-house team of development, construction, property management and leasing professionals to execute on a successful repositioning that many saw as a significant challenge when we first purchased the portfolio,” said Steve Murphy, partner and principal of acquisitions at Campanelli.
To revive the buildings, Campanelli utilized its in-house construction arm, Campanelli Construction and Boston-based Margulies Perruzzi Architects to implement a multi-million dollar renovation plan which included sleek new entrances, a full-service café featuring downtown eatery Sebastians, high-end fitness facilities and a modern conference center in Heritage Two. The Heritage Two café also features the first-ever Micro-Mart in a multi-tenant suburban building which offers snacks, drinks and sandwiches that can be accessed via a tenant’s FOB 24/7. It was created to cater to the young, innovative companies in the building that work off-hours.
“We had companies signing leases with us and moving in before the construction was even complete at Heritage Two,” explained Peter Brown, Director of Leasing at Campanelli. “Many companies saw the vision we had for the space and knew the location would attract and retain millennial employees while offering free parking to employees coming from the suburbs.”
Located directly off Interstate 93, Route 3 and Route 3A, Heritage One and Two are only seven miles from downtown Boston and are directly accessible via the MBTA Red Line “T” and South Shore’s Commuter Rail.
