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Transcript of 151 Merrimac St Om
151 MerriMAC streetBOSTON, MASSACHUSE T TS
Conf ident ia l O ffer ing Memorandum
151 MerriMAC street
O F F E R I N G M E M O R A N D U M
exeCutive suMMAry 5
property detAils 8
MArket overview 11
Boston Market Overview
Competitive Property Set
Aerial View
tenAnt inforMAtion 17
Stacking Chart
Rent Roll
Floor Plans
Tenant Profiles
finAnCiAl AnAlysis 24
Cash Flow Assumptions
Historical Operating Expenses
BOSTON, MASSACHUSETTS
ExClUSIVE ADVISORS
KARyN McFARlAND
Senior Vice President
(617) 772-7231
ANTHONy W. BIETTE
Vice President, Capital Markets
(617) 772-7205
TA B l E O F CO N T E N T S
PHIl GIUNTA
Executive Vice President
(617) 772-7280
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151 MerriCk street 3
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5151 MerriMAC street
ExECUTIVE SUMMARy
As exclusive agent, Grubb & Ellis’ Capital Market Group is pleased to offer for sale the fee simple interest in the lockhart Build-
ing at 151 Merrimac Street, a 43,495 square foot office building with first floor retail space located within the Bulfinch Triangle
in Boston, Massachusetts. Originally constructed in 1887, the building was renovated in 1989 and features a layout that
provides image conscious tenants a chance to obtain coveted full floor identity. This is a tremendous opportunity to purchase
quality real estate in an established district of Boston. The dismantling of the elevated MBTA and the conversion of the Central
Artery combined with the development of the Rose Kennedy Greenway has enhanced what is already a vibrant Boston location.
The area surrounding 151 Merrimac Street is amidst a transformation into a multi-use district allowing its residents and patrons
to experience 24-hour business, retail and entertainment options. Multifamily development plans for the Delaware North site
and the North Station Garage continue to move forward, which will further enhance the 24-hour character of the neighbor-
hood.
The Bulfinch Triangle DistrictCentral to the history as well as the future of Boston, the Bulfinch Triangle neighborhood in Boston’s new downtown has expe-
rienced a rebirth following the completion of Boston’s Big Dig project. This neighborhood has emerged as a neo-industrial hot
spot in Boston. A popular entertainment destination for Boston’s hip, young cosmopolitans, the Bulfinch Triangle is home to
numerous sports bars, gourmet restaurants and swank cocktail lounges. The neighborhood is also ideally located within walk-
ing distance to some of Boston’s most popular attractions. The TD Garden, home to the Boston Celtics and Boston Bruins, as
well as host to premier concert and entertainment events, anchors the Bulfinch Triangle. Boasting new upscale condo develop-
ments and two of Boston’s newest hotels, The Bulfinch Hotel and Kimpton’s Onyx Hotel, the Bulfinch Triangle is an ideal place
to live, work and play. North Station’s role as a cultural hotspot is home to Massachusetts General Hospital, Edward S. Brooke
Courthouse and the Thomas O’Neil Federal Building.
Also within steps from the Bulfinch Triangle are North Station, the North End, Beacon Hill, the Financial District, Faneuil Hall,
and the Boston Waterfront. North Station terminal, enjoying a 2007 facelift and expansion, is one of two major transporta-
tion hubs in Boston and is the primary rail service for commuters traveling to and from areas north of Boston, including Maine
and New Hampshire. This is also the site of the newly rebuilt MBTA Superstation, a $111 million project uniting the Green and
Orange lines under Causeway Street, a vast improvement for commuter travel. The newly rebuilt Merrimac Street now allows
cars to travel both east and west and immediately connects you to Storrow Drive. Interstate 93 offers easy access from 151
Merrimac to logan International Airport, the Mass Pike and the suburbs. Workers, visitors and residents enjoy the convenience
and accessibility of the numerous service lots and parking garages in the area.
The Bulfinch Triangle District is the site of some of Boston’s most significant new development initiatives and is one of Boston’s
most vibrant historic neighborhoods. The historic district extends from Merrimac Street down Causeway Street to North Wash-
ington Street and is nestled between the prestigious Beacon Hill and famous North End. No other neighborhood in Boston can
boast of its unparalleled community diversity.
The Bulfinch Triangle by day is a thriving community for the business, medical and legal professionals as well as a government
employee base. Mayor Thomas Menino and the City of Boston have launched a comprehensive planning program defining the
“new” downtown Boston through what is referred to as the “Crossroads Initiative.” This project includes six miles of key urban
streets – twelve in all – to act as “connectors” to its surrounding ethnic neighborhoods and important destinations along the
Greenway.
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live, Work, PlayThe TD Bank Garden anchors the Bulfinch Triangle and draws crowds to the neighborhoods numerous sports bars and restaurants
on game nights and for concerts and other special events. The Bulfinch Triangle draws young professionals, Boston residents and
tourists alike. Boasting new developments with pan-
oramic views of the Boston Waterfront and the new
leonard P. Zakim Bridge, Boston’s Bulfinch Triangle of-
fers upscale condo and apartment-style living options
for people who wish to live in the heart of Boston’s
new downtown.
New/Planned DevelopmentsSuffolk University - 20 Somerset Street
Project Address 20 Somerset Street
Neighborhood Beacon Hill/West End
Uses Institutional, Education, Cultural
Building Size 156,000 SF
Applicant Suffolk University
Project Description Suffolk proposes the removal of the existing building at the 20 Somerset Street site
and the construction of a new academic building not to exceed 156,000 SF. This
project is undergoing large Project Review and was listed in the approved Institutional
Master Plan. Suffolk University will move ahead with a new $68 million academic
building at the former MDC headquarters at 20 Somerset Street. The building is expected
to open January 2013. In addition, Suffolk will renovate nearby Romer Plaza, creating
an upgraded public space, at a cost of $2.5 million.
MGH Museum and History Center
Project Address 37 N Grove Street
Neighborhood Beacon Hill/West End
Uses Institutional, Education, Cultural
Building Size 8,000 SF
Applicant Massachusetts General Hospital
Project Description A new two-story museum and history center with a rooftop garden, totaling 8,000 SF on
the MGH campus.
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7151 MerriMAC street
Building for the Third Century - MGH IMP 2006
Project Address 255 Charles Street
Neighborhood Beacon Hill/West End
Uses Institutional, Medical Clinical
Building Size 530,000 SF
Applicant Massachusetts General Hospital
Project Description 150 new acute and critical care beds, an expansion of the Emergency Department and
Radiation Oncology, relocation and expansion of the sterile processing department, and
a platform for procedural services and a new dock/receiving area.
Simpson Parcel 1
Project Address Causeway/Beverly/Haverhill/Valenti Way
Neighborhood Bulfinch Triangle District
Uses Retail, Residential
Building Size 365,000 SF
Project Description 286 apartments; 142 parking spaces; 17,000 SF of retail
Status Under construction with a mid-2013 expected delivery.
Parcel 1B
Project Address Causeway/Beverly/Haverhill/Valenti Way
Neighborhood Bulfinch Triangle District
Uses Hotel, Residential, Retail
Building Size 215,000 SF
Project Description Marriott Courtyard Hotel, 220 rooms; 240 apartments; 25,000 SF of retail
Parcel 2A
Project Address One Canal
Neighborhood Bulfinch Triangle District
Uses Residential, Grocery, Retail
Building Size 438,000 SF
Project Description 320 luxury apartments; 22,000 SF grocery store; 159 parking spaces
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PROPERTy OVERVIEW
Address 151 Merrimac Street - lockhart Building, Boston, MA 02114
Property Type Class A Office
lot Size 6,853 sq. ft.
Building Size 45,000 sq. ft.
Rentable Area 43,495 sq. ft.
Total Occupied 33,850 sq. ft.
Total Vacant 9,645 sq. ft.
Stories 6
year Built 1887 - Renovated 1989
Current Tenants Rankin & Sultan, General Hospital Corporation, Dr. John Niles, Tufts University, Dr. leslie S.T. Fang M.D. P.H.D.
SITE SPECIFICATIONS
Zoning Bulfinch Triangle District Dimension Regulations ▪ Maximum Height: 80’ ▪ Maximum Floor Area Ratio: 6.0 Dimension Regulations Via Special Permit/Appeal ▪ Maximum Height: 100’ ▪ Maximum Floor Area Ratio: 7.0 / 8.0
Utilities Electric: NStar Water & Sewer: Boston Water & Sewer Gas: National Grid
151 MERRIMAC STREET / BOSTON, MA
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PROPERTy SPECIFICATIONS
Structure Steel Frame & Concrete
Foundation Granite & Concrete
Roof Rubber roof with stone ballast
Exterior Façade Brick
Windows 1988; Dual Pane
Elevators Two; Otis Elevator
Tenant Finishes Typical First Class Office Finish
Ceilings Acoustical Tile
Floors Tile & Carpet
lobby Granite Floor / Marble & Cherry Walls
lighting Energy efficient lighting installed in 2011 in all common areas plus many tenant areas. Decorative exterior lighting to highlight architectural details.
BUIlDING SySTEMS
Electrical Sytems 2 x 1600 amp redundant service. One is servicing Causeway Street; the second is servicing Merrimac Street ▪ One service provides power to the common area and roof top HVAC units; the second provides power to the tenanted areas.
HVAC System HVAC system located on roof; gas fuel HVAC distribution system deploys ▪ VAV Boxes ▪ FPB with reheat on perimeter
Plumbing System Two restrooms on each floor; Two ejection pumps in basement
Fire/life Safety Fully Sprinklered
Energy Management 2010 - Energy management system - Johnson Controls
Security System Timed Building Entry
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Market Snapshot – Third Quarter 2011Downtown Boston
MARKET SIZE (numbers in thousands except dollar amounts)
Absorption Asking Rent
Submarket Tot SF Vacancy % Q3 YTD Class A Class B
Financial District (Tower) 22,778 15.8% 45 107 $48.09 $33.00
Financial District (Low Rise) 9,409 12.1% 23 206 $49.26 $31.46
Government Center 1,796 13.8% 0 24 $40.00 $29.37
MARKET SIZE (numbers in thousands, except dollar amounts)
Midtown 3,027 9.1% 12 (44) $35.00 $26.81
North Station 3,053 8.1% 16 (50) $35.51 $26.83
Seaport District 7,791 12.8% 110 32 $56.44 $26.83
South Station 3,163 10.9% 16 30 NA $31.00
Total 51,017 13.4% 221 305 $48.01 $29.56
MARKET HIGHLIGHTS
Notable third quarter transactions include the 60,000-square-foot renewal and expansion by Acadian Asset Management at 260 Franklin Street and Lois Paul & Partners relocating from Woburn into 17,751 square feet at One Beacon Street.
There are currently 436 tenants with active requirements in the CBD totaling 5 9 million square feet of demand The
MARKET FORECAST
Looking to 2012, while Boston weathered the storm better than most markets during the 2007 to 2009 and beyond downturn, a softer dip may transcend into a less vigorous recovery. Economists predict employment – the intrinsic driver for office space demand –will grow an average of one percent a year in Massachusetts; lagging the rest of the nation through 2017.
the CBD totaling 5.9 million square feet of demand. The median tenant requirement is 5,000 square feet while the average tenant requirement is 13,253 square feet.
With 10-year treasury yields at historical lows, expect the Class B and Class C investment sales market to heat up as investors grow a bigger appetite for risk.
At 6.0%, the October unemployment rate in Greater Boston stands 300 basis points lower than the national
As employment modestly improves and demand for office space rises, expect asking rental rates and vacancy to continue improving into 2012. With limited large block options in the Back Bay, and firms from the suburbs seeking to attract a talented labor pool in the city, tenants will look to the Financial District and other CBD submarkets for their space needs. Moreover, with vacancy at 13.8 respectively, marked improvements may take a substantial amount of time.
THE STATE OF THE DOWNTOWN MARKET
Class A Class B
Vacancy Asking RentsAbsorption (in thousands)
stands 300 basis points lower than the national unemployment rate of 9.0%.
Com
pan
y-750-500-250
0250500750
$20$30$40$50$60$70
Class A Class B
8%
10%
12%
14%
16%
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During the third quarter, vacancy decreased to 13.5%...
…while absorption was positive 111,393 SF…
…and Class A average asking rates decreased to $47.75/SF.
Grubb & Ellis / 470 Atlantic Avenue, 11th Floor / Boston, MA 02210 / www.grubb-ellis.com
OFFICE MARKET OVERVIEW
MARKET SIZE (numbers in thousands, except dollar amounts)
Absorption Asking rent
Submarket Total SF Vacancy % Q3 YTD Class A Class b
Financial District (Tower) 22,778 15.8% 45 107 $48.09 $33.00
Financial District (Low Rise) 9,409 12.1% 23 206 $49.26 $31.46
Government Center 1,796 13.8% 0 24 $40.00 $29.37
Midtown 3,027 9.1% 12 (44) $35.00 $26.81
North Station 3,053 8.1% 16 (50) $35.51 $26.83
Seaport District 7,791 12.8% 110 32 $56.44 $26.83
South Station 3,163 10.9% 16 30 NA $31.00
Total 51,017 13.4% 221 305 $48.01 $29.56
MARKET HIGHlIGHTS• Notable third quarter transactions include the 60,000 square-
foot renewal and expansion by Acadian Asset Management
at 260 Franklin Street and lois Paul & Partners relocating from
Woburn into 17,751 square feet at One Beacon Street.
• There are currently 436 tenants with active requirements in the
CBD totaling 5.9 million square feet of demand. The median
tenant requirement is 5,000 square feet while the average ten-
ant requirement is 13,253 square feet.
• With 10-year treasury yields at historical lows, expect the Class
B and Class C investment sales market to heat up as investors
grow a bigger appetite for risk.
• At 6.0%, the October unemployment rate in Greater Boston
stands 300 basis points lower than the national unemploy-
ment rate of 9.0%.
MARKET FORECAST• looking to 2012, while Boston weathered the storm better
than most markets during the 2007 to 2009 and beyond down-
turn, a softer dip may transcend into a less vigorous recovery.
Economists predict employment - the intrinsic driver for office
space demand - will grow an average of one percent per year
in Massachusetts, lagging the rest of the nation through 2017.
• As employment modestly improves and demand for office
space rises, expect asking rental rates and vacancy to continue
improving into 2012. With limited large block options in the
Back Bay, and firms from the suburbs seeking to attract a tal-
ented labor pool in the city, tenants will look to the Financial
District and other CBD submarkets for their space needs. More-
over, with vacancy at 13.8% respectively, marked improve-
ments may take a substantial amount of time.
THE STATE OF THE DOWNTOWN MARKET
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Market Snapshot – Third Quarter 2011Downtown Boston
MARKET ACTIVITY & OPPORTUNITIES
Recent Lease Transactions
Tenant SF Building Business Service Sign Date Term Effective Rental Rate
($/SF/Yr.) gross
Success Factors 13,077 77 North Washington Street Software September 2011 3 Years $26.39
Bryant Associates 6,870 90 Canal Street Engineering March 2011 6 Years $24.08
Where, Inc. 6,330 77 North Washington StreetMobile
TechnologyMarch 2011 2 Years
1 Month $24.28
Klein Kavanagh & Costello
2,302 85 Merrimac Street Law October 2011 3 Years $23.67
Properties with Contiguous Availabilities – By Size Number of Tenants In the Market by SF Required
219
124
81
3921 9
50
100
150
200
250
Num
ber o
f Pro
perti
es
Size in thousands of square feet
<5201
10-2579
25-5024
50-10020
100+9
0< 5 5-10 10-25 25-50 50-100 100+
Size in thousands of square feet5-10103
CENTRAL BUSINESS DISTRICT (CBD) TERRITORIES MAP
LEGEND
TanNorth Station
PurpleGovernment Center
Red
Com
pan
yFinancial District
GreenMidtown
Yellow South Station
OrangeB k B
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CBack Bay
BlueSeaport District
MARKET ACTIvITy & oppoRTuNITIES
Recent Lease TransactionsTenant SF building business
ServiceSign Date Term Effective Rental Rate
($/SF/Yr.) gross
Success Factors 13,077 77 North Washington Street Software Sep 2011(renewal)
3 years $26.39
Bryant Associates 6,870 90 Canal Street Engineering Mar 2011 6 years $24.08
Where, Inc. 6,330 77 North Washington Street Mobile Techonolgy
Mar 2011(sublease)
2 years1 month
$24.28
Klein Kavanagh & Costello
2,302 85 Merrimac Street Law oct 2011 3 years $23.67
General Hospital Corp. 2,900 151 Merrimac Street Medical LoI 6 years $34.50
Market Snapshot – Third Quarter 2011Downtown Boston
MARKET ACTIVITY & OPPORTUNITIES
Recent Lease Transactions
Tenant SF Building Business Service Sign Date Term Effective Rental Rate
($/SF/Yr.) gross
Success Factors 13,077 77 North Washington Street Software September 2011 3 Years $26.39
Bryant Associates 6,870 90 Canal Street Engineering March 2011 6 Years $24.08
Where, Inc. 6,330 77 North Washington StreetMobile
TechnologyMarch 2011 2 Years
1 Month $24.28
Klein Kavanagh & Costello
2,302 85 Merrimac Street Law October 2011 3 Years $23.67
Properties with Contiguous Availabilities – By Size Number of Tenants In the Market by SF Required
219
124
81
3921 9
50
100
150
200
250
Num
ber o
f Pro
perti
es
Size in thousands of square feet
<5201
10-2579
25-5024
50-10020
100+9
0< 5 5-10 10-25 25-50 50-100 100+
Size in thousands of square feet5-10103
CENTRAL BUSINESS DISTRICT (CBD) TERRITORIES MAP
LEGEND
TanNorth Station
PurpleGovernment Center
Red
Com
pan
y
Financial District
GreenMidtown
Yellow South Station
OrangeB k B
©20
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rubb
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CBack Bay
BlueSeaport District
CENTRAl BUSINESS DISTRICT (CBD) TERRITORIES MAP
Properties with Contiguous Availabilities - By Size Number of Tenants in the Market by SF Required
LEGEND
TanNorth Station
PurpleGovernment Center
RedFinancial District
GreenMidtown
YellowSouth Station
OrangeBack Bay
BlueSeaport District
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Number of Tenants in the Market by SF Required
Competitive Property Set
BUIlDING SIZE AVAIlABlE SF ASKING STARTINGRENT PSF*
225 FRIEND STREET 59,763 SF 14,927 SF $26
226 CAUSEWAy STREET 193,000 SF 80,008 SF $35
100-124 N WASHINGTON ST. 52,945 SF 18,238 SF $28
90 CANAl STREET 78,462 SF 3,280 SF $28
200 PORTlAND STREET 100,868 SF 7,370 SF $28
25 NEW CHARDON 112,854 SF 14,889 SF $32
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Haymarket MBTA Stop T
Bowdoin Square MBTA Stop T
151 Merrimac Street
Thomas P. O’NeillFederal Courthouse
TD Garden
Cambridge Stre
et
Staniford Street
93 North Station MBTA StopT
Massachusetts State House
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Boston City Hall
Rose Kennedy Greenway
Massachusetts State House
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Lease Expiration Legend
2015 2016 2017 2018 2019 +2014Vacant
Current rentable space - 43,495 Square Feet
Vacant space - 9,645 Square Feet ( 22% )
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Basement
Dr. John NilesFeb. 2014
Vacant
Tufts UniversitySept. 2017
MGH May 2018
Leslie FangMar. 2014
MGHMay 2018
Stacking Chart
MGH May 2018
MGH May 2018
Rankin & SultanOct. 2015
MGHMay 2018
Vacant
Vacant Vacant
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SuiTE TENaNT NaME SizE ( SF ) PRO RaTa ShaRE 1 STaRT DaTE ExPiRaTiON DaTE aNNuaL RENT $PSF /TOTaL RENT ChaNGE DaTE aNNuaL RENT $PSF OPERaTiNG ExPENSES REaL ESTaTE TaxES BaSE YEaR
100 Vacant 1 - (Merrimac R + B) 5,310 12.21% Sept 2012 - - - - - - -
101 Vacant 2 - (Causeway R + B) 4,335 9.97% Sept 2012 - - - - - - -
200 Rankin & Sultan 4,886 11.23% Dec 2008 Oct 2015 $26.35 / $128,746
Dec 2008Nov 2009Nov 2011Nov 2012Nov 2013Nov 2014
$24.35$25.35$26.35$27.35$28.35$29.35
12.40% 12.40% 2005 / 2006
201 General Hospital (2nd Floor)MGH 2,045 4.70% Sept 2008 May 2018 $28.50 / $58,283
Dec 2010June 2012June 2014June 2016
$28.50$29.50$30.50$31.50
5.65% 5.65% 2010 / 2011
300 Dr. John Niles 925 2.13% Feb 2008 Feb 2014 $36.05 / $33,346
Feb 2008Mar 2009Mar 2010Mar 2011Mar 2012Mar 2013
$32.99$33.98$35.00$36.05$37.13$38.24
2.53% 2.53% 2007 / 2008
301 Dr. leslie S.T. Fang M.D. P.H.D. 3,629 8.34% Apr 2004 Mar 2014 $27.50 / $99,798 Jan 2009Mar 2009
$26.00$27.50 10.02% 10.02% 2006
400 General Hospital Corporation(3rd, 4th, 5th Floor) 12,852 29.55% Jun 2008 May 2018 $32.00 / $411,264
Dec 2008Feb 2009Feb 2010Feb 2011Apr 2011May 2011Jun 2011Jun 2013Jun 2015Jun 2016
$30.00$30.00$31.00$32.00$31.00$32.00$32.00$34.00$35.00$36.00
35.51% 35.51% 2008
500 General Hospital Corporation 2,900 6.67% Nov 2009 May 2018 $32.00 / $92,800
Mar 2012Feb 2014Feb 2016Feb 2017
$32.00$34.00$35.00$36.00
8.01% 8.01% 2012
600 Tufts University 5,181 11.91% Oct 2008 Sept 2017 $29.25 / $151,544
Oct 2008Oct 2009Oct 2010Oct 2011Oct 2012Oct 2013Oct 2014Oct 2015Oct 2016
$26.50$28.00$28.25$29.25$30.25$31.25$32.25$33.25$34.25
14.61% 14.61% 2007 / 2008
601 General Hospital Corporation 1,432 3.29% Nov 2009 May 2018 $29.50 / $42,244
Nov 2009Nov 2011Nov 2013Nov 2016Nov 2018
$28.50$29.50$30.50$31.50$32.50
3.96% 3.96% 2009
Roof (Signage) Omni Point Holdings, Inc. 0 0.00% Dec 2008 Jul 2015 $30,992.88
$28,362.84$29,213.76$30,090.12$30,992.88$31,992.64$32,880.36
Dec 2008Jan 2009Jan 2010Jan 2011Jan 2012Jan 2013
3% Inc yearly3% Inc yearly3% Inc yearly3% Inc yearly3% Inc yearly3% Inc yearly
0.00% 0.00% -
Rent Roll
Total Occupied 33,850 SF 77.83% MGH Occupied (SF) 19,229
Total Vacant 9,645 SF 22.17% MGH Occupied (%) 53.13%
Total Current RSF 43,495 RSF 100.00%
Total Building Size
102,235 Square Feet *
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SuiTE TENaNT NaME SizE ( SF ) PRO RaTa ShaRE 1 STaRT DaTE ExPiRaTiON DaTE aNNuaL RENT $PSF /TOTaL RENT ChaNGE DaTE aNNuaL RENT $PSF OPERaTiNG ExPENSES REaL ESTaTE TaxES BaSE YEaR
100 Vacant 1 - (Merrimac R + B) 5,310 12.21% Sept 2012 - - - - - - -
101 Vacant 2 - (Causeway R + B) 4,335 9.97% Sept 2012 - - - - - - -
200 Rankin & Sultan 4,886 11.23% Dec 2008 Oct 2015 $26.35 / $128,746
Dec 2008Nov 2009Nov 2011Nov 2012Nov 2013Nov 2014
$24.35$25.35$26.35$27.35$28.35$29.35
12.40% 12.40% 2005 / 2006
201 General Hospital (2nd Floor)MGH 2,045 4.70% Sept 2008 May 2018 $28.50 / $58,283
Dec 2010June 2012June 2014June 2016
$28.50$29.50$30.50$31.50
5.65% 5.65% 2010 / 2011
300 Dr. John Niles 925 2.13% Feb 2008 Feb 2014 $36.05 / $33,346
Feb 2008Mar 2009Mar 2010Mar 2011Mar 2012Mar 2013
$32.99$33.98$35.00$36.05$37.13$38.24
2.53% 2.53% 2007 / 2008
301 Dr. leslie S.T. Fang M.D. P.H.D. 3,629 8.34% Apr 2004 Mar 2014 $27.50 / $99,798 Jan 2009Mar 2009
$26.00$27.50 10.02% 10.02% 2006
400 General Hospital Corporation(3rd, 4th, 5th Floor) 12,852 29.55% Jun 2008 May 2018 $32.00 / $411,264
Dec 2008Feb 2009Feb 2010Feb 2011Apr 2011May 2011Jun 2011Jun 2013Jun 2015Jun 2016
$30.00$30.00$31.00$32.00$31.00$32.00$32.00$34.00$35.00$36.00
35.51% 35.51% 2008
500 General Hospital Corporation 2,900 6.67% Nov 2009 May 2018 $32.00 / $92,800
Mar 2012Feb 2014Feb 2016Feb 2017
$32.00$34.00$35.00$36.00
8.01% 8.01% 2012
600 Tufts University 5,181 11.91% Oct 2008 Sept 2017 $29.25 / $151,544
Oct 2008Oct 2009Oct 2010Oct 2011Oct 2012Oct 2013Oct 2014Oct 2015Oct 2016
$26.50$28.00$28.25$29.25$30.25$31.25$32.25$33.25$34.25
14.61% 14.61% 2007 / 2008
601 General Hospital Corporation 1,432 3.29% Nov 2009 May 2018 $29.50 / $42,244
Nov 2009Nov 2011Nov 2013Nov 2016Nov 2018
$28.50$29.50$30.50$31.50$32.50
3.96% 3.96% 2009
Roof (Signage) Omni Point Holdings, Inc. 0 0.00% Dec 2008 Jul 2015 $30,992.88
$28,362.84$29,213.76$30,090.12$30,992.88$31,992.64$32,880.36
Dec 2008Jan 2009Jan 2010Jan 2011Jan 2012Jan 2013
3% Inc yearly3% Inc yearly3% Inc yearly3% Inc yearly3% Inc yearly3% Inc yearly
0.00% 0.00% -
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Floor Plans
level 1
Upper Floors (Approximate)
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Rankin & Sultan Charlie Rankin and Jamie Sultan founded the firm on June 1, 1986. They had graduated from Harvard law School in the same class (1980)
and worked together as associates at the small criminal and constitutional litigation firm of Silverglate & Gertner (now Silverglate & Good).
After each subsequently enjoyed a successful tour in private solo practice, the two reunited to join forces as Rankin & Sultan.
Rankin & Sultan quickly developed a reputation for providing painstakingly diligent, thoroughly sophisticated, and extremely effective legal
counsel. Both Charlie and Jamie have been listed in The Best lawyers in America since 1991, and the firm is one of very few Boston criminal
firms listed in the Martindale-Hubbell Bar Register of Pre-eminent lawyers which “lists only the most distinguished law practices—those
that have achieved the…highest levels of legal ability…[and] adherence to professional standards of conduct, ethics, reliability, and dili-
gence. ” Today, Rankin & Sultan is at the forefront of the legal field, having forged some of the most significant advances in criminal justice
in Massachusetts over the past two decades. Charlie and Jamie are routinely called upon to speak, teach, and counsel others, from law
students to accomplished practitioners.
Company Description: Criminal defense firm representing individuals and companies in investigations, prosecutions, and appeals in
state and federal courts
Dr. John NilesJohn l Niles, MD is a Nephrologist in Boston, MA. A Nephrologist is a physician who provides kidney transplants, dialysis therapy and treat-ment for kidney disease.
Tufts University2011 FINANCIAl REPORTFiscal year 2011 produced solid financial results with an increase in net assets of $262 million. Operating performance produced an increase in net assets of $29 million, resulting from a 4% increase in revenues combined with a 2% increase in expenses. Investment returns ac-counted for the largest portion of the increase in net assets. The total return pool, which comprises the majority of the University’s invest-ments, returned 18.3% for the year. The University remained focused on meeting the financial aid need of their students and enhancing the academic program, while also avoiding reductions in staffing.
NET ASSETSTufts’ net assets grew 14.6% to $2 billion in fiscal year 2011. A strong donor base delivered $51 million in capital contributions, and unre-stricted operating activities added $29 million. As stated above, investment returns and other net asset changes, resulted in a $262 million increase. Over the last five years, net asset values rose by nearly $409 million and posted a compound annual growth of 4.5%.
Massachusetts General HospitalMassachusetts General Hospital (Mass General) is hardly general. The 200-year-old acute care hospital is Harvard Medical School’s original and largest teaching hospital. With some 900 beds, Mass General has its main campus in Boston and operates several health centers in sur-rounding communities. Its specialized medical departments include cancer, cardiology and heart surgery, neurology and neurosurgery, and diabetes and endocrinology. As a leading research facility, Mass General hosts a gaggle of clinical trials and has an annual research budget approaching $700 million. The hospital is a founding member of the Partners HealthCare System (along with Brigham and Women’s).
Tenant Profiles
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Cash Flow Assumptions Current Rentable Area (SF) 43,495
Vacant Space (as of 12/2011) 9,645 SF (22.17%)
General Inflation 2.5%
Growth Rate - Market Rent 2.5%
General Vacancy Rate 2% of all Gross Potential Revenue
Credit/Collection loss 3% of Gross Potential Revenue
Credit/Collection loss - (Mass General) 0%
Capital Reserve $0.05 PSF
Market leasing Assumptions
Absorption
Merrimac Retail / Basement Causeway Retail / Basement
Vacant Space 5,310 4,335
Date Sep 2012 Sept 2012
OfficE MERRiMAc REtAiL
MERRiMAc BASEMENt
cAUSEWAYREtAiL
cAUSEWAYBASEMENt
Downtime Between Leases 6 Months
Market Rent $PSF/Yr $31.00 $35.00 $20.00 $50.00 $10.00
Annual Increases $1.00 PSF $1.00 PSF $1.00 PSF $1.00 PSF $0.50 PSF
Renewal Probability (Months) 75% 75% 75% 75% 75%
Months Vacant 6 6 6 6 6
Term Lengths ( Years ) 5 10 10 10 10
Reimbursements Base Stop Base Stop Base Stop NNN NNN
LEASiNG cOMMiSSiONS $PSf/YR $PSf/YR $PSf/YR %/YR %/YR
NewRenewal
$2.25$1.00
$2.25$1.00
$2.25$1.00
9.0%4.5%
9.0%4.5%
tENANt iMPROvEMENtS $PSf/YR $PSf/YR $PSf/YR $PSf/YR $PSf/YR
NewRenewal
$25.00$10.00
$20.00$10.00
$20.00$10.00
$20.00$10.00
As-IsAs-Is
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Historical Operating Expenses
OPERAtiNG ExPENSES 2009 ActUAL
2010 ActUAL
2011 ActUAL1
2012 BUDGEt
Real Estate Taxes $162,179 $152,409 $148,280 $152,409
Utility Expenses 74,568 68,756 72,770 54,400
Contract Services 93,165 108,304 114,035 116,624
Repairs, Maintenance & Supplies 129,713 84,724 55,248 48,680
Total Administrative 59,431 66,012 62,901 66,444
Total Operating Expenses $519,056 $480,205 $453,234 $438,557
1. Actual Numbers through November 30, 2011
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Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
for the Years Ending $ PSf Dec-2012 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2018 Dec-2019
Potential Gross Revenue
Base Rental Revenue $29.87 $1,299,242 $1,345,099 $1,392,821 $1,427,560 $1,479,830 $1,504,728 $1,526,386 $1,553,855
Absorption & Turnover Vacancy ($4.48) ($195,034) - ($24,720) ($27,185) - ($30,286) ($115,215) ($27,969)
Scheduled Base Rental Revenue $25.39 $1,104,208 $1,345,099 $1,368,101 $1,400,375 $1,479,830 $1,474,442 $1,411,171 $1,525,886
Base Rental Step Revenue $0.00 - - $2,734 $7,288 $16,728 $26,600 $49,233 $68,655
Expense Reimbursement Revenue
Utility Expense $0.06 $2,.411 $6,557 $6,489 $7,047 $7,705 $8,925 $9,284 $9,598
Contract Services $0.12 $5,168 $14,056 $13,907 $15,107 $16,517 $19,132 $19,904 $20,579
Repairs Maintenance Supplies $0.05 $2,157 $5,866 $5,805 $6,305 $6,894 $7,987 $8,309 $8,591
Administrative $0.07 $2,944 $8,007 $7,922 $8,607 $9,410 $10,901 $11,340 $11,723
Real Estate Taxes $0.43 $18,596 $32,848 $34,318 $37,025 $37,403 $41,419 $32,597 $26,895
Total Reimbursement Revenue $0.72 $31,276 $67,334 $68,441 $74,091 $77,929 $88,364 $81,434 $77,386
Omni Point Holdings, Inc. $0.72 $31,523 $32,468 $33,442 $34,447 $35,481 $36,546 $37,640 $38,765
tOtAL POtENtiAL GROSS REvENUE $26.83 $1,167,007 $1,444,901 $1,472,718 $1,516,201 $1,609,968 $1,625,952 $1,579,478 $1,710,692
General Vacancy $0.00 - ($16,256) - - ($18,470) - ($19,771) -
Collection Loss ($0.39) ($17,055) ($24,385) ($24,605) ($25,548) ($27,705) ($27,720) ($29,657) ($29,596)
EffEctivE GROSS REvENUE $26.44 $1,149,952 $1,404,260 $1,448,113 $1,490,653 $1,563,793 $1,598,232 $1,530,050 $1,681,096
Operating Expenses
Utility Expense $1.25 $54,400 $55,760 $57,154 $58,583 $60,047 $61,549 $63,087 $64,665
Contract Services $2.68 $116,624 $119,540 $122,528 $125,591 $128,731 $131,949 $135,248 $138,629
Repairs Maintenance Supplies $1.12 $48,680 $49,897 $51,144 $52,423 $53,734 $55,077 $56,454 $57,865
Administrative $1.53 $66,444 $68,105 $69,808 $71,553 $73,342 $75,175 $77,055 $78,981
Real Estate Taxes $3.50 $152,409 $156,219 $160,125 $164,128 $168,231 $172,437 $176,748 $181,166
total Operating Expenses $10.08 $438,557 $449,521 $460,759 $472,278 $484,085 $496,187 $508,592 $521,306
Per Square Foot $10.08 $10.34 $10.59 $10.86 $11.13 $11.41 $11.69 $11.99
NEt OPERAtiNG iNcOME $16.36 $711,395 $954,739 $987,354 $1,018,375 $1,079,708 $1,102,045 $1,021,458 $1,159,790Per Square Foot $16.36 $21.95 $22.70 $23.41 $24.82 $25.34 $23.48 $26.66
Tenant Improvements
Tenant Improvements $192,900 - $65,788 - $74,157 $80,600 $306,621
Leasing Commissions $136,244 - $6,280 - $7,097 $7,694 $29,269
Capital Reserves $2,175 $2,229 $2,285 $2,342 $2,401 $2,461 $2,522
total Leasing & capital costs $331,319 $2,229 $74,353 $2,342 $83,637 $90,755 $338,412
OPERAtiNG cASH fLOW $380,076 $952,510 $913,001 $1,016,033 $996,071 $1,011,290 $683,046
Cash Flow Analysis
151 MerriMAC street 2 52 5
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PHIl GIUNTA
Executive Vice President
(617) 772-7280
ANTHONy W. BIETTE
Vice President, Capital Markets
(617) 772-7205
ExClUSIVE ADVISORS
KARyN McFARlAND
Senior Vice President
(617) 772-7231
Cambridge
This brochure can be rec ycled
The information contained herein was obtained from sources believed reliable; however, Grubb & Ellis Company makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of these properties is subject to errors, omissions, change of price and or conditions prior to sale or withdrawal without notice.