Ferris Deal Boosts Waltham Office Market
128 CRE, JLL Lease Fills Up 1432 Main St.
[VIA THE REAL REPORTER, WRITTEN BY JOE CLEMENTS]
WALTHAM — Buying into Main and Main continues paying dividends for backers of Ferris Development Group, the latest “good news” bringing 1432 Main St. to 100 percent occupancy as a neurologic and orthopedic therapy provider leases all available space in the 61,000-sf office building after outgrowing their home in neighboring Watertown. The Waltham property perched near the juncture of Routes 117 and 128 will welcomeCommunity Rehab Care Inc. later this summer, confirms 128 CRE principal Adam T. Meixner, joined by colleague Jeremy A. Freid, SIOR, as advisors to the tenant while JLL Executive VP Sam Crossan and Managing Director Rob Walles represented FDG. Namesake founder David M. Ferris was unavailable for comment on the transaction as of press deadline.
Through a special opportunity fund, FDG paid $22.2 million in March 2015 to secure 1432 and abutting 1440 Main St., the latter of which was traded in summer 2019 at a consideration of $15.1 million versus the $11.1 million that smaller (53,500 sf) building had been purchased for; it had also been modernized and filled to capacity prior to its sale closing out the 2010s as unveiled at the time by Real Reporter. It came on line in 1981, three years before 1432 Main St. opened.
Presently based at 51 Water St., Community Rehab is expanding from 6,000 sf to 10,000 sf, and staffers “are really excited” to have found a venue to accommodate continued growth, says Meixner. “They were bursting at the seams,” he explains, adding another benefit will be customizing the state-accredited company to meet modern changes in medical equipment and practices for CRC which provides rehabilitative services to a dedicated local clientele suffering from a variety of maladies including brain injury, speech and language disorders and other ailments needing physical therapy applications. “They are doing important and lifesaving work for the community, and we are really happy to have been able to find a location that meets all of their needs,” Meixner tells Real Reporter, including an address close to the current home with plentiful on-site parking at 1432 Main St. Getting there will be “relatively seamless” for patients, says Meixner, and he adds the tenant is also pleased to have “essentially a dedicated entryway” to the building.
“It is a great gateway into their offices,” he says if the fortuitous design of the two-story structure set on a landscaped seven acres. Meixner would not discuss specifics of the agreement except to acknowledge the lease represents a 10-year commitment, and he called FDG’s agreement “competitive for the times” and praises the landlord for a series of capital improvements under its stewardship to address the property’s age matters such as having its 40th birthday on the horizon next year.
“It is a great gateway into their offices,” he says if the fortuitous design of the two-story structure set on a landscaped seven acres. Meixner would not discuss specifics of the agreement except to acknowledge the lease represents a 10-year commitment, and he called FDG’s agreement “competitive for the times” and praises the landlord for a series of capital improvements under its stewardship to address the property’s age matters such as having its 40th birthday on the horizon next year.
As in the case of 1440 Main St. prior to its sale in July 2019 to another homegrown
investment company, FDG “did an excellent job” modernizing 1432 Main St., according to one suburban CRE professional familiar with the holdings, a notion shared by Meixner who adds the infill location has actually improved over time thanks to the recent opening of a major retail center branded 1265 Main. Surrounding amenities “are excellent,” Meixner says, enabling the neighborhood to create a live-work-play vibe that also includes Waltham’s extensive apartment holdings and a series of new residential construction projects.
“There are a lot of positive things happening there,” observes Meixner, whose Newtonbased firm specializes in communities in and around the Route 128 Central submarket. The 1265 Main mixed-use development is anchored by an expansive Market Basket and Marshall’s plus several dining options including Jake n Joes, Not Your Average Joe’s and The Federal Steakhouse. For those seeking to travel, 1432 Main St. is one exit north of the Massachusetts Turnpike and within a half-hour of downtown Boston and Logan International Airport.
David Ferris
Crossan and Walles are also the exclusive agents who negotiated a 6,750-sf lease last autumn with Adden Energy setting up the deal that put 1432 Main St. at full capacity. In that instance, the tenant was represented by R.W. Holmes Realty Co. The company founded by a team of Harvard University scientists are involved in state-of-the-art battery technologies and took a mix of flex and research at the building, their brokers including RWH Director of Corporate Services Elizabeth Holmes and Senior VP Craig Johnston.
Having a pulse on the submarket where it is based in Newton, 128 CRE has certainly seen pandemic-disrupting impacts on suburban office activity this decade, and Meixner calls the Community Rehab Care commitment “a nice deal for everyone” given it reflects a nearly doubling in size for the client and attaining a key milestone for the landlord plus infusing a measure of positivity entering the spring season. “It is a larger deal than what we have been seeing for a while,” he says, adding, “That is refreshing for sure.”
