BOSTON – Holliday Fenoglio Fowler, L.P. (HFF) announced that it has closed the $21.686 million sale of 200 Exchange Street, a 314,176-square-foot office building located in the heart of Malden, Massachusetts, immediately across from the MBTA’s Malden Center “T” station.
HFF exclusively represented the seller, an affiliate of KBS Real Estate Investment Trust, Inc., in the transaction, and procured the buyer, Berkeley Investments, Inc. Gramercy Property Trust, as asset manager, advised KBS on the transaction.
Originally constructed as an operations center for Bank of Boston, this four-story property features abundant floor loads, oversized windows, robust infrastructure and large, efficient floorplates. Berkeley Investments has engaged Stantec to devise a significant renovation program that includes improvements to the streetscape and the building’s curb appeal as well as a complete renovation of the interior spaces.
The plan is to turn the building into a vibrant mixed-use asset with street level retail, a state-of-the art data center, and nearly 200,000 square feet of creative office space. Street level retail will be created on two sides of the building adding to the already vibrant restaurant scene in the area and appealing to the new millennials living and working in the new downtown. Berkeley plans to take full advantage of the building’s irreplaceable infrastructure by turning part of the first floor and the second floor into highly sought after data center space.
Due to its original use, the building currently has the power and redundancies necessary for data center tenants that are cost prohibitive to install on a speculative basis. In the remainder of the building, Berkeley will create vibrant office space that appeals to forward-thinking creative tenants that are price-sensitive but crave the amenities and transportation package of an urban location. Berkeley intends to turn outdated office space on the upper floors into creative and efficient space by adding sky lights, an atrium, new systems, and incorporating sought after building amenities like a fitness center, shared conference room, bike storage, and updated lobby.
Located in Malden Center, 200 Exchange Street is easily accessible via public transportation or the Interstate Highway system. The property is situated directly across the street from the Malden Center T stop, offering Orange Line and Commuter Rail service to and from downtown Boston in less than 12 minutes. The station is also a focal point of the MBTA’s bus system north of Boston and will also serve as the terminus of the future Wynn Casino shuttle service. The property is positioned alongside Route 60, which provides direct access to Interstate 93 and Route 1, offering multiple convenient commuting routes to Boston and the North Shore.
The HFF investment sales team representing the seller was led by senior managing director Coleman Benedict, managing director Chris Phaneuf and directors Ben Sayles and Mark Campbell.
“Malden Center is currently undergoing a dramatic transformation as a downtown redevelopment is underway that will reconnect streets, relocate City Hall, and introduce hundreds of new residential units along with numerous new retail destinations,” said Sayles. “With a lower price point than other close-in suburbs and with immediate T access, Malden is emerging as a new residential and commercial hub for the region and 200 Exchange Street is well positioned to both contribute to and benefit from this transformation.”