WALTHAM, MASS. — Private equity firm Rubenstein Partners, acting on behalf of Rubenstein Properties Fund II LP, has closed on its acquisition of CenterPoint office park in Waltham for $68 million. The transaction marks the Philadelphia-based firm’s initial investment in its second value-added office real estate fund.
The seller was TC Saracen, a joint venture between Saracen Properties LLC and Trammell Crow Co.
The approximate 500,000-square-foot office complex is located on 24 acres in Waltham, about 10 miles northwest of Boston. CenterPoint was originally built in the 1950s and used as a research and development facility. The property includes two office buildings: 41 Seyon Place and 43 Foundry Ave.
The complex was significantly renovated and redeveloped in 2008 and now includes dramatic and engaging “creative class” office space, according to Rubenstein Partners. CenterPoint is currently 84 percent occupied.
Rubenstein Partners purchased CenterPoint through a joint-venture partnership with developer and operator Saracen Properties, which designed and carried out the recent renovations.
In addition to efficient floor plates, CenterPoint features high ceilings with an abundance of natural light, feature that are unique to the Waltham market, according to Rubenstein Partners. The office space has seen increased tenant demand from a variety of users including professional service, technology and marketing firms.
CenterPoint is located in an infill neighborhood undergoing a transformation. Many retail and residential amenities are within walking distance and short drive times to the town centers of Waltham, Watertown and Newton.
“Vibrant, mixed-use neighborhoods with nearby amenities are increasing in appeal at the expense of standalone office parks,” says Deke Schultze, director of New England for Rubenstein. “CenterPoint appears to be positioned perfectly to capitalize on this trend, which we believe will only intensify as more and more tenants look creatively to drive corporate performance through their use of office space.”
Rubenstein Partners and Saracen Properties were drawn to CenterPoint's strategic location in a rapidly improving section of the Route 128 West suburban office submarket of Boston, the strength of the current tenant roster and the quality of CenterPoint's recent office renovations.
“We are extremely excited about the prospects for the future with Rubenstein Partners as we continue to expand the repositioning efforts at CenterPoint,” says Ted Saraceno, president of Saracen Properties.
“It has been a dramatic transformation to date, and with all that is happening in the neighborhood in regards to retail and residential development, we are poised to see this transformation continue into the future,” Saraceno added,
Founded in September 2005, Rubenstein Partners is a private real estate investment management and advisory firm with operations throughout the eastern United States. The firm is focused on directing and managing value-added office real estate investments.
Rubenstein Partners’ predecessor company, The Rubenstein Company LP, was founded in 1969 and was one of the largest private owner operators of Class A office real estate in the Mid-Atlantic, owning and operating a portfolio of assets valued at approximately $1.2 billion at the time of its disposition in 2004.
Since 2005, Rubenstein Partners has, on behalf of its investors, invested in more than 8.5 million square feet of office real estate assets in New England, metro New York, the Mid-Atlantic, Midwest and Southeast.
— Matt Valley