HFF secures $27.4 million bridge loan for five-building office portfolio in Needham, Massachusetts

The Boston office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it secured a $27.4 million bridge loan for a five-building, 226,000-square-foot office portfolio in the New England Business Center in Needham, Massachusetts.

Working on behalf of a joint venture between Commonfund Realty and Cabot, Cabot & Forbes, HFF senior managing director Riaz Cassum, director Gregory LaBine and senior real estate analyst Porter Terry placed the three-year, adjustable-rate loan with Wells Fargo Real Estate Group, Inc. Loan proceeds will allow the client to reposition the portfolio by redeveloping some buildings and releasing others.

“Wells took the time to structure a loan that gave Commonfund and CC&F both the dollars and the flexibility they need to successfully reposition the portfolio and unlock their long-term value. The quality of the assets and their location, along with the strength and experience of the borrowers allowed us to complete the loan on a largely vacant portfolio in a challenging financial environment,” said Cassum.

The portfolio is located within the 150-acre New England Business Center, adjacent to Route 128 and south of the Massachusetts Turnpike in Needham, approximately eight miles west of downtown Boston. Four of the properties are currently vacant and the fifth is leased to Gold’s Gym.

“Three of the buildings are adjacent to one another with immediate frontage and visibility on Interstate 95/Route 128 presents an opportunity for higher density development. The venture is in the midst of permitting these parcels for a Class A office campus and has had several potential tenants express a strong interest in the project,” added LaBine.

Commonfund Realty, Inc. is the realty arm of Commonfund, the nation’s largest dedicated non-profit investment manager. Since 1988, Commonfund Realty, Inc. has acquired or overseen developments in more than 18 states throughout the country aggregating more than $3.7 billion in transactions.