Boston's Big Deal
Sep 1, 2007 12:00 PM, Elaine Misonzhnik
In the largest portfolio sale in Massachusetts history, Dividend Capital Total Realty Trust Inc., a Denver-based diversified REIT, reached a deal to acquire 25 properties from Tedeschi Realty Corp., a Rockland, Mass.-based real estate development and property management firm. Dividend Capital has already closed on the acquisition of 22 centers for $329 million and is expected to purchase the rest of the portfolio within the next few weeks.
Dividend Capital tapped Burlington, Mass.-based KeyPoint Partners, LLC to manage the properties. That brings the number of properties Keypoint has under management up to 230.
The portfolio consists primarily of grocery-anchored properties located throughout the Greater Boston area. The centers are 99 percent occupied. “It is one of the rarest, finest portfolios to come to the market in New England in a long time,” says Joseph French, national director of retail with real estate investment brokerage firm Sperry Van Ness.
Dividend Capital declined to comment on the acquisition. According to Marcus & Millichap Real Estate Investment Services, Inc., Boston continues to be a strong market for retail. Rents for retail properties in the area are expected to rise 2.6 percent to $20.37 per square foot this year, while vacancy will decline 20 basis points to 5.1 percent.
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