Bluestone Holdings has purchased One and Two Cabot Place in Waltham for nearly $45 million.
If the commercial real estate sales
market truly is on the wane, one would not know it in Waltham, with a spate of opportunities continuing to attract investment interest. In the latest activity, Wellsford Commercial Properties is said to be buying the Polaroid complex on Winter Street, while Bluestone Holdings has purchased One and Two Cabot Place from CC&F New England.
Calls to Wellsford and brokers for Polaroid were not returned by Banker & Tradesman’s press deadline, but several sources named Wellsford as the winner for the 56-acre complex, one being sold amidst a difficult financial climate for Polaroid. “I have heard they were the winners of that contest,” said one local broker familiar with the situation, while another claimed the property is under agreement.
One and Two Cabot Place overlook Route 128. The 201,000-square-foot development, leased mostly to CSC Consulting, fetched an impressive $221 per square foot, or $44.6 million. Broker Philip Giunta of CB Richard Ellis/Whittier Partners said there were a number of suitors who chased the property, which features a mix of new and renovated space.
“It was an absolute pleasure to work with Bluestone,” said Giunta, who represented CC&F and procured the buyer along with colleague Scott Richmond. Efforts to contact Bluestone officials were unsuccessful. The Needham-based company is a real estate arm of Continental Wingate, and was one of several private investors who made bids on the Cabot Place properties. Pension fund advisory groups were also active, said Giunta, who explained that even with the real estate market past its peak, Waltham remains a popular destination for investment dollars.
“Peripheral markets may have their troubles, but the western Route 128 market will hold up very well,” Giunta said. “It’s a core market that just proves itself time and time again.”
Broker John Boyle of Trammell Crow concurs with that notion. Especially given the likelihood that speculative construction will be harder to push forward, Boyle said he believes centralized Route 128 communities will withstand a recent barrage of sublease space flooding both downtown Boston and the suburbs (see related story, Page 1).
“Right now, the market is finding its level,” said Boyle, noting that 10 percent vacancy is usually considered equilibrium. “It is slower, but there’s still good demand and high-quality projects will continue to do well because that kind of space is hard to find.”
Great Location
As for the Polaroid property, Wellsford would reportedly buy the complex via a new funding vehicle created by the company and the Whitehall Funds, a private pool of capital sponsored by Goldman, Sachs & Co. It is unclear what price the buyers will pay. One source placed the figure at $83 million, but others said they have heard the number ranges anywhere between $70 million and $90 million. With the market off its peak, the development is unlikely to fetch the $100 million that Polaroid initially estimated it would receive for the complex.
Most real estate professionals spoken with said the Polaroid site should make for an attractive redevelopment opportunity. At the same time, the age of the 1960s-era complex and the condition of some of the existing buildings there will probably require extra attention to convert the complex into modern office space.
“It needs a lot of work,” said one broker who is familiar with the development. Nonetheless, the source supported the notion of investing in the property, noting that “it’s in a great location.”
