Jumbo Capital Management, LLC, gained a foothold in Cambridge, Mass., by acquiring two, well-located and fully occupied office properties in the popular life sciences and technology hub. NGKF Capital Markets represented the seller, Coda Development, a suburban Boston developer based in Needham, Mass., and secured the buyer in the $7 million transaction.
“We were attracted to the property’s outstanding rent roll and its extremely desirable location within Cambridge along the MBTA Red Line and only a short walk from Davis Square,” said Jay Hirsh, managing partner and founder of Jumbo Capital. “We always enjoy working with the Newmark Grubb Knight Frank team, which kept the train on the track throughout this transaction.”
Greg Cohen, managing principal of Coda Development, added, “NGKF did a great job representing us and working with both parties to achieve favorable terms.”
Renamed the Campus Street Tech Center, the properties at 9 Camp Street and 29 Camp Street total 21,139 square feet and are leased to MC10 Inc., an innovative maker of high-performance electronic devices, and mobile marketing firm Tapjoy Inc. MC10 occupies the entirety of 29 Camp Street (3,739 square feet), while each firm occupies a floor at the 17,400-square foot, two-story 9 Camp Street. The office buildings, featuring brick and beam interiors, are conveniently located five minutes from the Davis Square Red Line station and offer on-site parking.
The Cambridge office submarket recorded the lowest vacancy rate at 5.7 percent in the Greater Boston area in the third quarter, according to NGKF research. Year-to-date, it has posted more than 240,000 square feet in positive net absorption. As of the third quarter, there were only eight properties in the submarket that could accommodate tenants with space needs of 25,000 square feet. With no development in the pipeline, vacancy is expected to continue shrinking and rental rates to remain increasing for the foreseeable future.
“This is a singular opportunity to get a stabilized and unique property in this neighborhood, which has demonstrated strong leasing velocity this year,” said Leigh Freudenheim, executive managing director with NGKF Capital Markets in Boston, who negotiated the transaction along with Senior Managing Director Anthony Biette. “Given the urban nature of the neighborhood and little development on the horizon, the property also offers great long-term potential for commercial or residential redevelopment.”
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com/.