BOSTON – JLL Capital Markets announced that it has structured a new partnership between Berkeley Partners (“Berkeley”) and Invesco Real Estate, the $88 billion global real estate investment platform of Invesco Ltd. The new venture will target tough tech/advanced manufacturing assets in Greater Boston and the Bay Area.
As the first transaction of the venture, JLL arranged the sale and acquisition financing of a four-property seed portfolio totaling 217,217 square feet in Greater Boston, Massachusetts. The seed portfolio, which was previously owned by Berkeley Partners, consists of 244 Vanderbilt Ave. in Norwood, 23 Rainin Rd. in Woburn and 33 and 37 Manning Rd. in Billerica.
JLL worked on behalf of Berkeley to recapitalize the portfolio and secured Invesco Real Estate as a strategic equity partner to compile a larger portfolio of like-kind assets. In addition to the initial four-property recapitalization, the venture will consider bolt-on acquisitions to the portfolio. JLL also secured a five-year, floating-rate acquisition loan through an institutional bank.
Located within 30 minutes of downtown Boston, the assets provide convenient access to the region’s deep talent pool and world-class universities. The buildings feature ample parking and heavy power capabilities to support advanced manufacturing and R&D tenants.
The portfolio is fully leased to seven diverse tenants representing industries including advanced manufacturing, aerospace and aviation technology, mobility and transportation solutions, printing and imaging technology, supply chain logistics and scientific instruments and sensors. The venture will strategically invest capital to further enhance the buildings’ ability to accommodate R&D/advanced manufacturing tenants.
The JLL Capital Markets team representing Berkeley Partners in the recapitalization and equity raise was led by Managing Directors Michael Restivo and Andrew Gray and Director David Coffman. The financing process was led by Senior Managing Director Brett Paulsrud and Managing Director Andrew Gray. Associate Hugh Doherty and Analyst Ali Howard provided analytical support throughout the processes.
“With significant mark-to-market opportunity and the ability to reposition assets for higher-value uses, this seed portfolio and go-forward venture are well-positioned to capitalize on Greater Boston’s thriving innovation economy,” said Restivo. “The venture aims to compile a larger portfolio of similar quality properties in the core innovation markets such as Boston and San Francisco, aligning with the growing demand for ‘superflex’ product in these key markets.”
