Oxford Properties Group, the real estate arm of OMERS, the pension plan for municipal employees in the Province of Ontario, and institutional investors advised by J.P. Morgan Asset Management announce the acquisition of two prime office properties in Boston and one in Cambridge, comprising 2.2 million square feet of class A office space. Oxford also has acquired a fourth class A property in Boston. Oxford will assume the asset and property management of all the buildings and, as such, has added approximately 40 new employees to launch its Boston business and establish a robust on-the-ground platform to service the buildings and implement value-accretive active asset management initiatives.
Oxford and J.P. Morgan’s acquisitions in the Boston CBD and Cambridge comprise:
• 225 Franklin – A 33 story office property comprising 943,605 square feet. 96 per cent let to a variety of blue chip tenants, 225 Franklin is recognized as a best-in-class office product in Boston.
• 60 State – A 38 story office property comprising 911,394 square feet. Built in 1978, the building was extensively renovated in 2013. The building is currently 82 per cent leased to several first-rate tenants and presents Oxford with an excellent opportunity to actively manage the space and increase occupancy.
• One Memorial – A 396,436 square foot building comprising 17 floors. Located at the gateway to nearby Cambridge, home to two of the world’s most prominent universities, Harvard University and the Massachusetts Institute of Technology (‘MIT’), the building is fully let and routinely recognized as “the best office building in Cambridge.”
Oxford’s acquisition in Boston CBD
• 125 Summer – An office property comprising 475,482 square feet of GLA over 22 floors. The building is 85 per cent let and set to benefit from its close proximity to South Station with opportunities to enhance value through a potential capital improvement plan and increasing occupancy.
The office portfolio presents significant active asset management opportunities in a market that demonstrates strong and improving fundamentals. Boston has witnessed an above-average recovery since the recession, largely from job creation in the Technology and Life Science sectors. Due to its proximity to MIT, and with 52 higher education institutions in the metropolitan area, Boston is home to an expanding technology business community containing over 5,000 high technology and 480 biotech companies. As a destination for venture capital activity, the state of Massachusetts is second only to California.