Newmark Arranges $93M Boston Office Sale

9/90 Corporate Center. Image courtesy of Newmark

Outshine Properties and Jadian Capital have acquired 9/90 Corporate Center, a four-building office and laboratory campus totaling more than 400,000 square feet in Framingham, Mass.

The seller and price were not disclosed but Bisnow reported National Development sold the campus for approximately $93 million.

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The sale was arranged by Newmark. Newmark Co-Head of U.S. Capital Markets Robert Griffin, Vice Chairman Edward Maher, Executive Managing Director Matthew Pullen and Managing Director Samantha Hallowell of the firm’s Boston Capital Markets Group represented the seller and procured the buyer. Newmark Senior Financial Analyst William Sleeper provided financial analysis support.

The campus includes 100, 175 and 200 Crossing Blvd. and 200 Staples Drive. In May 2018, National Development completed a comprehensive renovation and modernization of 100 Crossing Blvd., a three-story, 100,000-square-foot building. Anchored by life science and technology users, the campus is more than 80 percent leased by 12 tenants, many of which operate their headquarters or other flagship facilities at the site.

The demand for research and development space has intensified and there is a scarcity of quality-built lab space in the Boston metro area, according to Jonathan Scheinberg, Outshine’s managing partner who founded the New York-based real estate investment and development firm in 2020 with Bill Hunter. Scheinberg said in a prepared statement the firm planned on bringing more much-needed lab space to the market in the coming months to meet the demand.

Pullen said in prepared remarks the in-place cash flow at 9/90 Corporate Center is complemented by a prime laboratory conversion opportunity at 200 Staples Drive. He said the 65,000-square-foot building is fully available and features reusable infrastructure for life science users.

Conversions abound

In its third-quarter Boston office market report, Newmark noted demand for laboratory space is driving much of the activity in the region. The report stated developers are focused on purpose-built space as well as conversion projects, mainly in the Boston suburbs. Conversions resulted in a 1.4 million square-foot reduction in the metro’s office inventory, with most occurring in the suburbs. It is also impacting the capital markets with more than $2.2 billion in office and lab assets changing hands across the metro in the third quarter, bringing the year-to-date total to nearly $8.7 billion, according to the Newmark report.

Situated 25 miles west of Boston, the campus is located at the intersection of Route 9 and Interstate 90 (Massachusetts Turnpike) with shuttle service to a nearby MBTA commuter rail station.