JLL arranges joint venture and $ 300 million construction loan for specialist office in Cambridge
BOSTON, September 23, 2021 / PRNewswire / – JLL announced today that its Capital Markets group has arranged debt and equity financing for the redevelopment of 40 Thorndike, a 475,000 square foot mixed-use project with office, residential and commercial in Cambridge East, Massachusetts.
JLL worked on behalf of the Borrower, a joint venture between Leggat McCall Properties and Granite Properties, to secure the $ 300 million fixed rate construction loan through OZK Bank. JLL also secured joint venture interests for the project through CBRE Global Investors.
The 40 Thorndike redevelopment will focus on quality and sustainability, the project for LEED Gold certification as well as a 20% improvement in energy consumption standards from American National Standards Institute recommendations, a roof green, rainwater harvesting features and a building envelope. When complete, the 20-story project will provide 421,000 square feet of Class A office space, 11,000 square feet of street-level retail and 48 affordable apartments. Facilities will include a fitness area, catering area, daycare, communal conference / community center and bicycle storage with en-suite shower and lockers. The development team continues to meet regularly with the community to provide construction updates as they work towards a goal of building occupancy in fall 2023.
40 Thorndike is positioned in Cambridge East within walking distance of Kendall Square, Cambridge Crossing and Boston downtown. Given the proximity of MIT and Harvard University, Cambridge East has become known as a preeminent global innovation center, attracting over 300 tech, life science and other innovative companies who are drawn to access to talent and the opportunity to collaborate. The site also provides convenient road access to Storrow Dr., Memorial Dr., Interstate 93, the Massachusetts Toll Freeway and connectivity to Boston Logan International Airport, just a 15-minute drive from the project.
Cambridge East is a fast-growing market with office rents up over 130% since 2010, higher than any other global market. During this same period, the region has maintained a vacancy rate close to zero percent. The majority of the supply under construction is intended for laboratory use, making the 40 Thorndike the only fully available office opportunity in Cambridge East.
JLL’s Capital Markets team representing the borrower was led by the Executive Managing Directors Riaz cassum and Trey morsbach and senior general managers Brett Paulsrud and Jim curtin.
âAs the demand from large tech tenants shifts more and more to the east coast in search of talent and quality lifestyles, Cambridge East and 40 Thorndikes are ready to capitalize on this demand, âcommented Paulsrud. âWe are proud to be a part of this exciting redevelopment and to help facilitate Leggat McCall and Granite’s vision for this innovative project.
JLL’s Capital Markets group is a global full-service provider of capital solutions for real estate investors and occupants. The company’s in-depth knowledge of the local market and global investors provides the best solutions for clients, whether it is investment sales and advice, debt advice, equity advice or recapitalization. The company has more than 3,000 capital markets specialists around the world with offices in nearly 50 countries.
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About Leggat McCall Properties
Founded in 1965, Leggat McCall Properties is a leading property owner, developer and provider of real estate services to businesses, educational institutions, healthcare and other clients in the Greater Boston Area. Over the past 10 years, LMP has played a leading role in over 42 million square feet of project development, representing over 10 billion dollars investment. The company has executed on 15 projects on $ 200 million, 50 more $ 50 million, and has also developed or acquired approximately $ 3 billion in assets as principals, including research and life sciences, mixed-use properties, offices and residences. The company has a dominant presence in the rapidly growing life sciences, higher education and healthcare industries and serves many of the region’s top universities, healthcare systems and biotechnology companies, including institutes Novartis for biomedical research, the Draper laboratory, Harvard University, Massachusetts Institute of Technology, and Brigham & Women’s Hospital.
About the properties of granite
Granite Properties is a privately held commercial property investment, development and management company founded in 1991. Granite has over 10 million square feet of high quality office space in Dallas, Houston, Atlanta, Denver, Southern california and Nashville. Granite is an established investor, developer and manager who focuses on high quality, sustainable projects. More … than $ 7.7 billion in real estate transactions and over 28 million square feet of real estate development and acquisitions have been completed by Granite. Current plans for acquisition and development projects in Atlanta, Boston, Dallas, Houston and Southern california are valued at more $ 1 billion. Granite is focused on creating extraordinary customer experiences through mixed-use, feature-rich environments, customer-centric service and innovative wellness features. The firm has been named one of the best places to work by Fortune magazine and Great Place to Work for the past nine consecutive years. For more information visit: www.graniteprop.com.
JLL (NYSE: JLL) is a leading professional services firm specializing in real estate and investment management. JLL is shaping the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, incredible spaces and sustainable real estate solutions for our clients, employees and communities. JLL is a Fortune 500 company with annual sales of $ 16.6 billion, operations in over 80 countries and a global workforce of over 91,000 in March 31, 2021. JLL is the brand name and registered trademark of Jones Lang LaSalle Incorporated. For more information, visit jll.com.
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