Press Release: Fully Capitalized, Cambridge’s 40 Thorndike Development Forges Ahead
Fully Capitalized, Cambridge’s 40 Thorndike Development Forges Ahead
Located in the heart of East Cambridge, this transformative mixed-use development, designed to achieve LEED Gold certification, represents the only Class-A office headquarters opportunity in the nation’s premier tech and life science cluster in the next two years.
EAST CAMBRIDGE, MA – September 15, 2021 – After years of pre-development planning and permitting, and with interior demo and abatement nearing completion, the joint venture of Leggat McCall Properties and Granite Properties today announced that capital funding has been secured for the full redevelopment of 40 Thorndike, a 475,000 square foot, 20-story project located in East Cambridge scheduled for delivery in fall 2023.
CBRE Global Investors, one of the world’s leading real asset investment managers with $129.1 billion in assets under management, will join the effort as the project’s equity partner on behalf of one of the firm’s investment funds. Bank OZK, an industry leader in construction financing for marquee properties throughout the U.S., is the project’s construction lender. CBRE Global Investors and Bank OZK’s commitment comes at a time when 40 Thorndike has emerged as the singular custom headquarters office opportunity in the East Cambridge market. JLL arranged the funding as capital market broker and will continue to represent Leggat McCall and Granite Properties as leasing agent for the property.
“Our partnership with CBRE Global Investors and Bank OZK enables us to deliver truly exceptional, modern office space to the most innovative companies in this global hub of ingenuity,” said Rob Dickey, Executive Vice President and partner at Leggat McCall Properties. “The building’s new terracotta and glass façade along with unencumbered 360-degree views will set the tone for a thriving block that also includes 48 new housing units, onsite childcare, retail and outdoor space.”
“With our committed partners, Granite is excited to realize our vision for this transformative East Cambridge project that embodies ESG principles in both its design and amenities,” added Bill Brown, Chief Investment Officer at Granite Properties. “Securing this capital allows us to offer a sustainable, wellness-focused, people-centric work environment designed for collaboration and innovation. Located just a few blocks from Kendall Square, 40 Thorndike’s one-of-a-kind, Class-A office space will be attractive to top talent and businesses serving the area’s most prominent global tech and life science companies.”
Designed by Elkus Manfredi Architects and being constructed by John Moriarty & Associates, the ground level of the reimagined building will feature a thoughtful series of activated storefronts and intimate public landscaped space for the enjoyment of the Cambridge community and future building employees and residents.
The majority and upper floors of the new building will offer office space planned for Kendall Square-connected businesses, while floors 2 and 3 will accommodate 48 affordable apartments with a separate residential entry on Third Street.
Comprised of a city block, the project is designed with a commitment to sustainability and wellness to achieve LEED Gold certification. Class-A amenities, including a childcare facility, fitness center, a south facing pocket-park and multiple outdoor deck spaces, and an adjacent indoor farmers market will support its resurrection as a prominently located community asset. Spanning 475,000 square feet across 20 stories, the building will also be a formidable presence on the city skyline with superior views of Boston, Cambridge, and the Charles River.
Project construction began in 2020 with the initial phase clean-up of the building interior. Phase two construction work recently began on the installation of a new façade with a terracotta and glass skin that will completely modernize the exterior and showcase this prominent East Cambridge building.
The development team will continue to meet regularly with the community to provide updates on construction as they work toward a building occupancy goal of Fall 2023.
Just a 5-minute walk from the new Lechmere station and 13 minutes from Kendall/MIT station, 40 Thorndike has unparalleled access to the MBTA, boasts a 94 bike score and will provide 130 indoor bike spaces. The neighborhood is just 8 minutes from I-93 and 12 minutes from I-90 and will have 362 parking spaces serving its tenants.
Leggat McCall Properties
Founded in 1965, Leggat McCall Properties is a leading real estate owner, developer and service provider to corporate, educational, healthcare and other clients in the Greater Boston Area. Over the past 10 years, LMP has had a leadership role in over 42 million square feet of project development, representing more than $10 billion of investment. The company has executed on 15 projects over $200 million, 50 over $50 million, and has also developed or acquired approximately $3 billion in assets as principals, including research and life science, mixed-use, office, and residential properties. The firm has a dominant presence in the rapidly growing life sciences, higher education and healthcare industries and serves many of the area’s top universities, healthcare systems and biotech companies, including Novartis Institutes for BioMedical Research, Draper Laboratory, Harvard University, Massachusetts Institute of Technology, and Brigham & Women’s Hospital.
Granite Properties is a privately held commercial real estate investment, development and management company founded in 1991. Granite owns more than 10 million square feet of high quality office space in Dallas, Houston, Atlanta, Denver, Southern California and Nashville. Granite is an established investor, developer and manager with a focus on sustainable, high-quality projects. More than $7.7 billion in real estate transactions and more than 28 million square feet of real estate development and acquisitions have been completed by Granite. Current plans for acquisition and development projects in Atlanta, Boston, Dallas, Houston and Southern California are valued at over $1 billion. Granite focuses on creating extraordinary customer experiences through mixed-use environments, rich in amenities, customer-centric service, and innovative wellness features. The firm has been named as one of Fortune Magazine and Great Place to Work Best Workplaces for the last nine consecutive years. For more information, visit: www.graniteprop.com.
CBRE Global Investors
CBRE Global Investors is one of the world’s leading real asset investment managers with $124.5 billion in assets under management. Built up over more than 40 years, our distinct platform is focused on real assets, giving our institutional clients access to real estate and infrastructure in the Americas, Europe and Asia Pacific. Our clients have access to a complete range of investment solutions including equity and debt, direct and indirect, and listed and unlisted strategies. We believe the best performance comes from putting our clients first. In our experience, our local market intelligence, proprietary research and active management enable our experienced professionals to deliver strong results and exceptional service. As part of CBRE Group, the premier real estate services platform, we believe we offer our clients a competitive advantage with an enriched local footprint and market knowledge and access to best-in-class services.
Bank OZK (Nasdaq: OZK), through its Real Estate Specialties Group (RESG), provides financing on commercial real estate projects throughout the nation. RESG is considered a preeminent, market-leading construction lender changing skylines across the United States. RESG focuses on senior secured commercial real estate construction financing for a variety of property types including mixed use, multifamily housing, condominiums, office, hotels, life sciences, industrial and retail. During the five years ended December 31, 2020, RESG originated $35 billion in new commercial real estate construction loans. For more information visit www.ozk.com.
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