Boston, April 25, 2017 – Colliers International announced today that its Boston Capital Markets Group has closed the $60.5 million sale of and arranged $40 million in acquisition financing for the Blackstone Valley Medical Office Portfolio (the "Portfolio"), a 10-building, institutional-quality portfolio of urban and suburban Class A medical office buildings (“MOBs”) totaling 301,700 square feet located in three distinct Rhode Island submarkets – East Greenwich, Lincoln, and Providence. Each of the properties within the Portfolio represents best-in-class product within its competitive set. The Portfolio is presently 98% leased and its favorable position in the marketplace has enabled it to maintain this same average occupancy level from 2007-2016. The Portfolio offers a stable rent roll of credit tenancy, including Lifespan Rhode Island, The Miriam Hospital, Kent County Hospital, Anchor Medical, Coastal Medical, and University Urological.
In a purely off market transaction, Colliers represented the seller, F.H. French Co. Inc., a multi-generational Rhode Island real estate firm founded in 1935.
Albany Road Real Estate Partners was identified as the ideal buyer for the Portfolio because of its pricing, track record, and certainty of execution. The Portfolio offers an attractive yield and provided Albany Road with the ability to acquire scale, stability, and diversity at a favorable basis in a highly competitive market. Albany Road’s President, Chris Knisley, a native Rhode Islander himself, had been pursuing the Portfolio for the better part of five years. Eventually, given the family’s desire to consummate a quiet, confidential transaction, in conjunction with Albany Road’s strong market reputation, a direct transaction was negotiated between the two parties and overseen by Colliers Boston co-chairman Kevin Phelan and executive vice president Scott Dragos. Joining Phelan and Dragos in the sale efforts were executive vice president Doug Jacoby, vice president Tony Hayes, assistant vice president Tim Mulhall, and associate Dan Hines.
Additionally, senior vice president Jeff Black of Colliers International's Boston-based debt team assisted Albany Road in securing highly attractive fixed-rate financing through PNC Bank. Payments will be interest only for the initial 5-year term of the loan, providing an enhancement to cash flow during the ownership period.
Jen Cookke, the granddaughter of the original founder and who now runs the firm, will continue to manage the property and assist in the leasing of the Portfolio.