DivcoWest, a San Francisco-based real estate investment and operating firm founded by Stuart Shiff, made a major addition to its Boston-area holdings with the acquisition of One Kendall Square, a 10-building corporate campus located in Cambridge, MA. The sale included 670,000 square feet of office, retail and laboratory space along with a 1,574-space garage and potential development site.
The seller, a joint venture between Rockwood Capital and Related Beal, had owned One Kendall Square since 2006 when they acquired it from Lincoln Property Co. and JER Partners for $211 million.
Rockwood and Related Beal said they invested $75 million in property upgrades and increased occupancy to more than 91 percent, more than doubling the property's net income.
Terms of the transaction were not disclosed, although local media cited property records indicating the property traded for $395 million. The joint venture had listed the property for sale with Cushman & Wakefield.
Considered one of the most successful mixed-use properties in the Kendall Square/East Cambridge area, One Kendall Square has benefitted from the large number of technology and life science companies that have operastions in the area, drawn by its proximity to major educational and research centers, including the Cambridge Innovation Center and the Massachusetts Institute of Technology (MIT).
Major tenants in the property include Merrimack Pharmaceuticals, Akamai, Nine Point Medical, MIT, Abcam, Next Jump, CRB Consulting Engineers, Invivo Therapeutics, Redstar Ventures, Visterra, Inc., Cogo Labs, Semprus Biosciences and Catabasis.
DivcoWest has been an active investor in technology-related real estate properties. In addition to One Kendall Square, the firm owns the Davenport in Cambridge and several buildings in the Seaport District. Last month, Divco purchased One Winthrop Square, a five-story, 114,257-square-foot office building in Boston's financial district from GLL Real Estate Partners for $36 million.
Other Boston-area holdings include 11 Beacon in Boston; 100 Crosby in Bedford, MA; 300 & 400 Riverpark in North Reading, MA; Prospect Hill in Waltham, MA; and 210 Littleton in Westford, MA.