WATERTOWN, MASS. — Athenahealth Inc. has finalized its purchase of the Arsenal on the Charles, a 760,000-square-foot office campus in Watertown for $168.5 million. The 11-building complex, whose historic buildings date back 200 years, is located about 10 miles from downtown Boston
The company, which provides electronic record and billing systems to hospitals and other medical industry clients, purchased the office campus from Boston-based Harvard University. In December, Athenahealth disclosed that it had agreed to pay $168.5 million to acquire the parcel from Harvard University.
The campus already serves as Athenahealth’s headquarters, but executives say buying the property will allow them to expand the business in coming years. The company moved into the property in 2005 as a tenant and occupied 133,000 square feet. Due to its rapid growth, the company sought up to 500,000 square feet for its corporate headquarters.
“The Arsenal on the Charles offers Athenahealth everything we could ask for in a headquarters. Its open and expansive architecture, outdoor campus feel, strong community, and proximity to Boston fit with our culture,” says Jonathan Bush, chairman and CEO of Athenahealth.
Given the lack of existing product and the high expense of new construction, the Arsenal on the Charles made sense as a long-term solution on a cost basis, according to a press release by Avison Young, broker of the deal.
The Arsenal on the Charles was more than 90 percent leased at the time of sale. Athenahealth currently occupies 250,000 square feet. Other major tenants include Harvard Business School Publishing (100,000 square feet), Bright Horizons (90,000 square feet) and Boston Sports Club (50,000 square feet).
Harvard acquired the property in 2001 with the intention of utilizing the campus for future institutional needs. Following the recent recession, Harvard recalibrated its vision for properties beyond its core campus. The university utilized property closer to the Harvard campus for institutional needs and leased the Arsenal on the Charles to outside businesses.
Avison Young principals Steve Cook in Boston and Suzanne Martinez in Chicago represented the buyer, Athenahealth. Harvard University represented itself in the transaction, which closed May 10.