Newton, MA Privately held real estate investment firm, Jumbo Capital has completed the disposition of two commercial properties – The Wells Ave Portfolio for $92 million and 9 Stuart Rd. in Chelmsford for $30 million - for a combined value of $122 million. The two transactions yielded a return of over $42 million for Jumbo and its investment partners signaling what the firm sees as a continued strengthening of the suburban Boston commercial real estate market.
Senior Associate John Harrison spearheaded the disposition of both deals for Jumbo and congratulated all of the stakeholders involved in each transaction.
“Jumbo is very pleased with the return on investment that both exits have yielded for the firm and its partners.” Harrison said. “The Wells Ave. portfolio sale allowed us to capitalize on a prevalent trend of suburban core office demand driven by a gradual return to work.” Regarding 9 Stuart Rd., Harrison attributed the nearly three-fold increase in value to the high watermarks set by longer-trend cap rate compression in the industrial/flex asset class around suburban Boston.
The first transaction included the sale of the Wells Park Office Complex. Jumbo and investment partner, Angelo Gordon acquired the Rte. 128 campus with its three buildings in 2016 for just over $69 million. Jumbo and Gordon successfully rebranded, enhanced the amenities, and brought the building to over 93% occupancy . The property consisting of nearly 377,000 s/f of class A office space was just sold to Taurus Investments for $92 million. The property was successfully marketed by Dan Hines and the capital markets team at CBRE.
Jumbo Partner, Jordan Berns reflected on the activity at Wells Park over Jumbo’s hold period, “With $4 million+ of capital improvements made during Jumbo’s tenure, and the placement of many stable, high quality long term tenants like Newton Wellesley Hospital, Karyopharm Therapeutics and Adviser Investment Management, Taurus now holds an asset that promises to increase in value and remain in high demand. Similarly, the tenants can expect continued outstanding service and property management under Taurus Investments’ care,” Berns said.
The second sale involved 286,000 s/f of industrial/flex space to Equity Industrial Partners. The large industrial warehouse space located at 9 Stuart Rd. is home to long term Jumbo tenant, and food service product manufacturer, Waddington North America (WNA).
Jumbo acquired the property for $10.75 million in 2013 and recently sold to Equity Industrial Partners for $30 million. Nick Trocki, Jumbo’s vice president of development said, “With a long term lease in place and a strong credit tenant the asset at 9 Stuart Rd. has performed well over our ownership since 2013. With the trending market demand for logistics and warehouse facilities in the past years we saw the opportunity to sell a stabilized asset with future upside for a buyer to bring rents to market.”
