BOSTON — HFF has secured $345 million in first mortgage and mezzanine financing for Charles River Plaza North, a 354,594-square-foot medical office/research building adjacent to and long-term leased by Massachusetts General Hospital (MGH) in Boston.
HFF worked on behalf of the borrowers, The Davis Cos. and Marcus Partners Inc. — developers and owners of the property — to secure a $245 million, fixed-rate loan with UBS and a $100 million mezzanine loan with TIAA-CREF. Loan proceeds will be used to refinance an existing loan HFF arranged for the borrower in 2007.
“[HFF is] extremely proud to be involved with such a world-class project that represents Boston’s strong presence in the field of medical research,” says HFF Senior Managing Director Riaz Cassum, who led the debt placement team representing the borrower.
Charles River Plaza North is located at 185 Cambridge St. within the larger 630,000-square-foot Charles River Plaza mixed-use development adjacent to the MGH campus in Boston’s Beacon Hill neighborhood. The location is across the Charles River from the Massachusetts Institute of Technology and Harvard University, and an MBTA red line station is located approximately three blocks away.
Completed by the current ownership in 2005, Charles River Plaza North is leased in its entirety to The General Hospital Corp., the parent of MGH and a subsidiary of Partners Healthcare System. Additional tenants within the development include Whole Foods Market, CVS and the Schepens Eye Institute.
Charles River Plaza North is used as a lab/research facility with five research teams each occupying a floor of the building — the Center for Systems Biology, the Center for Regenerative Medicine, the Center for Computational and Integrative Biology, the Wellman Center for Photomedicine and the Center for Human Genetic Research.
The Davis Cos. is an integrated real estate investment, development and management firm headquartered in Boston that has invested nearly $3 billion in gross asset value through real estate equity, debt and fixed-income securities.
Marcus Partners is a value-oriented real estate investor, operator and redeveloper based in Boston that invests in real estate and related assets through its $250 million Marcus Capital Partners Fund II LP.
HFF operates out of 22 offices nationwide and is a provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.
— Scott Reid