Boston-based Griffith Properties has acquired the Boston Dedham Commerce Park, in the Hyde Park neighborhood of Boston and Dedham, Massachusetts for $76 million. Located inside the Route 128 beltway and adjacent to the Readville Commuter rail stop, the 632,188-square-foot industrial portfolio is comprised of five buildings sprawling over 22 acres of land strategically situated on the edge of the city’s shrinking urban core. The property’s infill location offers immediate proximity to the large, affluent population in the surrounding suburbs as well as connectivity to downtown Boston which is less than 10 miles from the Property.
As part of the acquisition, Griffith Properties entered into a new joint venture with affiliates of Dune Real Estate Partners LP (Dune) to own and operate the portfolio. The partnership acquired the portfolio in an off-market transaction from First Highland, who specializes in industrial real estate in the Northeast and Midwest. First Highland has owned Boston Dedham Commerce Park for 21 years and is developing the adjacent Readville Yard 5, a speculative 300,000-square-foot industrial development on former MBTA land. “We are thrilled to add another high quality, last mile logistics asset to our portfolio,” said Brad Takala, Principal at Griffith Properties.
Newmark Co-Head of U.S. Capital Markets Robert Griffin, Executive Managing Directors JR McDonald and Mike Frisoli, Senior Managing Director Tyler McGrail and Director Caroline Collett represented the seller and the buyer, Griffith Properties, in the property acquisition and will represent the leasing of the park’s remaining vacancy.
According to Newmark Research, while the success of Greater Boston’s booming industrial market pre-dates the COVID-19 pandemic, the last few months have given way to a stronger market that has garnered the attention of all investor profiles. Metro level vacancies remain near historic lows while rents continue to climb and the market has posted more than 2.0 million square feet of positive net absorption so far in 2020 as industrial demand is surging. Robust leasing activity bodes well for the market’s near-term outlook as fundamentals are expected to tighten further in the coming quarters.
About Griffith Properties
Griffith Properties, L.L.C., is a women-owned real estate investment firm that invests in core-plus and value added office, industrial, R&D and life science assets located in the Boston to Washington DC corridor. Through four GP Funds and a separate account relationship with a major Public Pension Fund, Griffith Properties has acquired $840 million of assets consisting of 32 office and industrial buildings, totaling 4.2 million square feet in the Greater Boston, Baltimore and Washington DC markets.
About Dune Real Estate Partners
Dune Real Estate Partners is a New York City-based real estate investment firm executing an investment strategy that focuses on distressed, deep value-add and contrarian investing balanced by region, sector, and risk profile. Dune manages the Dune Real Estate Funds, which were launched by Mr. Daniel M. Neidich in 2005 and have raised approximately $4 billion of equity capital to date. Dune invests on behalf of pension funds, sovereign wealth funds, endowments and other large institutions and individuals.
About Newmark (Nasdaq: NMRK)
Newmark Group, Inc., together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2019, Newmark generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.
