BOSTON– KKR, a global investment firm, and Skanska, a development and construction firm, announced that KKR has acquired Two Drydock in Boston from Skanska. Synergy Investments, a full-service real estate investment and operating company primarily focused on the Boston market, is participating in the investment alongside KKR and will operate the property.
Two Drydock, designed by Boston architectural firm SGA, is a 13-story, 235,000-square-foot, Class-A, office building developed by Skanska which holds LEED® Gold and Fitwel® certifications. It features approximately 7,000 square-feet of ground-floor retail, 150 above-ground parking spaces and a 10,000-square-foot outdoor plaza.
“The Seaport is a global hub for leading technology and life science companies and we are pleased to add another great property to our Boston portfolio with the purchase of Two Drydock,” said Daniel Rudin, Managing Director at KKR. “Under the management of the great team at Synergy, this modern, highly amenitized office building is well positioned to cater to a wide range of tenants and we believe it will benefit from the sustained strong demand in the Seaport for top quality office space.”
“Two Drydock is a prime example of what modern tenants are looking for in the next-generation of buildings in Boston, and we couldn’t be prouder of what we’ve delivered to this quickly expanding area of the Seaport,” said Russell DeMartino, Executive Vice President of Skanska USA Commercial Development in Boston. “We remain highly confident in the Boston office market, and the sale of Two Drydock further confirms our belief that well-designed, high-quality office buildings are still the best tool employers can use to attract and retain world-class talent.”
“We are excited to join in this investment with KKR and expand our growing portfolio in Boston with the purchase of Two Drydock,” said Dave Greaney, Founder & Chief Executive Officer of Synergy Investments. “This best-in-class building exemplifies our commitment to the fundamental importance of office as an asset class.”
The office tenants of Two Drydock are a diverse group of pioneering companies. Lord Hobo Brewing Company and Render Coffee have entered into agreements to occupy the ground floor retail space, completing Skanska’s vision for a dynamic, open-concept lobby experience, adding value as a new asset for the surrounding community.
Located at 2 Drydock Avenue in the Seaport, the building is proximate to the MBTA’s Silver Line and is within walking distance to the ferry that connects the Seaport to North Station. Two Drydock is also easily accessible to I-90 and I-93, and is minutes from Logan International Airport.
Two Drydock, which broke ground in June 2018, represents Skanska’s sixth commercial development in Boston and fourth development in the Seaport. Skanska’s other developments in Greater Boston include 121 Seaport, a LEED Platinum elliptical tower in the city with 400,000 square feet of Class-A, flexible office space that is home to PTC and Alexion; 101 Seaport, the New England headquarters for PwC; Watermark Seaport, a 300,000-square-foot, LEED Gold residential building with ground-floor retail; The Harlo, a 17-story, 183,000-square-foot residential tower with 212 apartments and approximately 7,000-square-feet of ground-floor retail; and, 150 Second Street, a lab building in Cambridge.
Skanska has built and restored New England’s landmarks for more than 70 years, from Gillette Stadium and the Novartis Institute for Biomedical Research to the Longfellow Bridge. Skanska continues to leverage its local knowledge and global expertise to shape the region’s institutional, commercial, healthcare and life science facilities, as well as to enhance and expand essential transportation and energy infrastructure.
KKR is making the investment in Two Drydock through its KKR Real Estate Partners Americas III fund. Since launching a dedicated real estate platform in 2011, KKR has grown real estate assets under management to approximately $36 billion across the U.S., Europe and Asia as of September 30, 2021. KKR’s global real estate team consists of approximately 135 dedicated investment professionals, spanning both the equity and credit business, across twelve offices and nine countries.
Newmark represented Skanska in the transaction.