Boston – Oxford Properties Group, Oxford, and J.P. Morgan Global Alternatives, announced the sale of One Memorial Drive, a fully leased, 409,422sf Class A office building in Cambridge, Mass. for $825.1 million.
The property was acquired by a joint venture between MetLife Investment Management and Norges Bank Investment Management. The sale was led by Eastdil Secured on behalf of Oxford and J.P. Morgan.
The transaction, which values the property at over $2,000 per square foot, sets a benchmark for office product pricing in the Boston region. Attracting an array of bids across institutional, private equity and REIT capital, it reveals demand for well let, high-quality office product among institutional investors. Originally purchased by Oxford and institutional investors advised by J.P. Morgan Global Alternatives in 2014 as part of a multi-asset office portfolio, One Memorial Drive, located next to MIT’s campus, is leased to Microsoft and InterSystems.
In 2017, Oxford increased the lettable area of the building by over 10% by converting an entire floor of underutilized parking space into office space which was then leased to InterSystems. Long-term renewals were also secured with the building’s occupants to drive net operating income over 55% higher than at acquisition.