Southborough developer seeks to turn Marlborough office building into 180 apartments
[VIA WORCESTER BUSINESS JOURNAL]
Southborough-based developer is seeking to create a new overlay district to allow for the conversion of a long-vacant office building in Marlborough into an 180-unit apartment complex.
Ferris Development Group is asking the City of Marlborough to create the Lizotte Drive Overlay District, which would allow for the conversion of 130 Lizotte Drive into residential units.
The building has been vacant for more than a decade, and the rezoning would allow Ferris to repurpose the parcel for residential use, said Ferris Development CEO David Ferris, who spoke in favor of the proposal at a Marlborough City Council meeting held on April 22.
"It could potentially be a very positive community development, given its location and proximity to some ballparks," Ferris said at the council meeting. He was referencing the Williams Street Baseball Fields, a complex containing three baseball fields utilized by the Marlborough Youth Baseball Association.
Condo Development Sought in Marlborough Office Park
[VIA BANKER & TRADESMEN]
A Southborough-based real estate developer wants to rezone a Marlborough office park to allow construction of residential condominiums.
Ferris Development Group acquired 130 Lizotte Drive, a 5-acre parcel that includes an 80,000-square-foot office building, for nearly $4.5 million in March.
Berkshire Bank provided $15 million in financing, according to a Middlesex County Registry of Deeds filing.
The developer is seeking approval from the Marlborough City Council for a Lizotte Drive Overlay District, allowing construction of residential condominiums, self-storage facilities and contractor’s yards.
The proposed district includes properties along the west side of Lizotte Drive, off Williams Street near the junction of Interstate 495 and Route 20.
The area is currently zoned for light industrial. A Planning Board public hearing on the proposal is scheduled for June 3.
Ferris Development Group owns office and industrial properties in Boston suburbs, primarily along the Route 495 belt.
180 Units Planned for Marlborough Office Site
[VIA BLDUP]
Ferris Development Group is planning a residential conversion of the vacant office building at 130 Lizotte Drive in Marlborough. The developer acquired the property in March for $4,475,000 and has now requested the city create an overlay district that would allow for residential development. Along with converting the office to 75 apartments, the project would also include 2 new construction buildings containing 105 units.
Ferris Launching Fixer-Upper Plan
BEEHIVE TO RETOOL AGING OFFICE STOCK
[VIA THE REAL REPORTER, WRITTEN BY JOE CLEMENTS]
BOSTON — Certain certificates of occupancy matter more than others. In the case of 250 Turnpike Rd., aka Route 9, owner David M. Ferris has a vision he predicts could be the vacant 57,000-sf office building’s salvation—and for aging brethren darkened throughout suburban Boston— via a novel self-storage model serving tradespeople focused on the built environment. “We are going to disrupt the trades industry in a good way and professionalize how independent contractors do business on a daily basis,” Ferris vows in telling Real Reporter he expects to have a “C.O.” by Tuesday that will enable a pre-Thanksgiving launch of his “BeeHive” platform at 250 Turnpike Rd., a foreclosed1980’s relic Ferris bought 18 months ago for $3.5 million and found while researching possible uses that a legion of solo and smallish contractors who ballooned during the pandemic were struggling to find cohesive space options, the warehouse sector tight as a drum and reaping record rents while retail self-storage proved ill-suited for commercial tenants needing access on a 24/7 basis.
“We want to give tradespeople an alternative to doing business from the back of their van or pickup truck,” says Ferris, a Southborough native who considers the potential so promising FD has two more assets tied up with the BeeHive platform center stage, 300 Billerica Rd. in Chelmsford set to close this coming Monday while 130 Lizotte Rd. in Marlborough is on tap for acquisition in early 2024.
CBRE Capital Markets is broker for the Chelmsford building that comprises 110,000 sf on two levels; calls to the team led by CBRE Executive VPs Scott Dragos, Douglas Jacoby and Christopher Skeffington were not returned as of press deadline, but Ferris acknowledges the commitment which market watchers have trading at $5.2 million, a matter he could not discuss prior to closing, but if accurate, that would be well below the $12.2 million 300 Billerica Rd. last sold for in September 2012. With eyes also set on Florida, Ferris intends to open at least 10 BeeHive facilities in his back yard where he owns a number of mainstream industrial and office buildings, target areas for BeeHive the South Shore, Greater Milford and Worcester while Burlington and Woburn are deemed ripe for expanding the airspace north of Boston to complement Chelmsford.
The preferred size for a BeeHive building is similar to 300 Billerica Rd. and 130 Lizotte Dr., which is 100,000 sf, but Ferris reports there is ample land upon which to build upwards of 60,000 sf more at the latter site and 45,000 sf in Chelmsford, projects that would accommodate bigger requirements beyond the existing building where most of the units will be similar to Southborough, although Ferris says the second level of 300 Billerica Rd. could support spaces on a larger scale as well. A key to providing BeeHive’s tenant amenities package that go beyond simple storage offerings ranging from 100 to 1,500 sf in the 395 units at 250 Turnpike Rd. is acquiring the properties at a certain discount to replacement cost, concurs Ferris who is fueling his transformation from financial advisor into real estate using proceeds of selling his wealth planning business to a national competitor, that deal this past year involving an operation he created over 10 years that had $1 billion of AUM when harvested.
David Ferris
Perhaps similar to devising a wealth management strategy, Ferris says once the general idea was conceived, BeeHive evolved to develop a broader concept beyond standard fare like storing materials, tools and work vehicles to offering pallet delivery; in-unit electrical outlets; business mailing addresses plus areas for tenants to meet customers and prepare quotes, print invoices, ship and receive supplies and perform other tasks “necessary to provide daily job responsibilities.” A linchpin to the idea is a mobile app through which tenants can communicate with his company but also a network of commercial landlords who may be seeking services without requiring a bid, a realm Ferris as a property owner maintains many owners would be interested in having while providing tradespeople a way to enhance what may be a consumer-based residential clientele.
“We are doing every thing we can to make our tenants successful,” says Ferris. One manifestation of that is equipment rentals including Caterpillar excavators, scissor lifts, sand blasters, boom lifts and “other essential tools required for commercial and residential projects.” Amenities are being offered ala carte with basic monthly storage solutions in Southborough from $55 to $2,000.
Ferris intends to acquire 300 Billerica Rd. using an existing credit facility with Webster Bank, specific details of which he did not provide on LTV and other elements. Recognizing the struggles some are having transacting deals due to higher interest rates, Ferris also wants to send a message to those who might have BeeHive worthy prospects or other investment opportunities for sale, his announcement that “We are looking to buy right now” in stating he is using proceeds from selling the wealth management business to make all-cash commitments when appropriate, an element he maintains may look attractive to landlords on the fence of whether to soldier on or accept the dramatic changes negatively “dislocating” office prices at present and use the exit ramp. In his view, many hanger-ons have this year “begun to read the tea leaves” on a challenging recovery and are over the past tw months willing to sell at a discount.
“We are fortunate to be in this position,” he says of having “dry powder” to take on reclamation projects such as those in Southborough and lining up in Chelmsford and Marlborough, the 130 Lizotte Dr. asset presently owned by a firm that intended to occupy the space, having paid $4.85 million in October 2022 to a partnership led by Brady Sullivan Properties that had bought it out of foreclosure in December 2019, and then the new owner changed course and FD was introduced to the opportunity by Colliers Executive VP Kevin Hanna. While Ferris could not discuss the negotiations that are being done, sources claim 130 Lizotte Dr. is under agreement for a price in the mid-$4 million range, one account placing it from $4.3 million to $4.4 million, or roughly $100 per sf. In a transaction that led to its foreclosure, the first-class, 100,000-sf building that dates to 1999 fetched $11.7 million in April 2014. As part of the bank’s foreclosure process, BSP spent $3.3 million for 130 Lizotte Dr. in December 2019, then dispatched it to the current owner that will apparently take a slight loss if the building does sell sub $4.5 million as sources maintain.
Ferris says his company will continue to evolve the BeeHive concept as it takes hold, that prospect helping to ramp up the anticipation of next week’s planned opening in Southborough where about half of the first floor has committed leases in place, its inagural tenants including a sprinkler-sytem installer and a landscape contractor. “We are very excited,” acknowledges Ferris who regards the mobile app of particular use for serving its tenants and the community at large. “With BeeHive, community members can easily request services and quickly link with our dependable network of customers,” one promotional missive pledges, adding, “We are committed to providing fair and 6 prompt service quotes and ensuring immediate solutions for commercial projects, repairs and maintenance.”
Ferris Development Office Sale Tops $23M
CBRE BrokersTrade to Tenant Eversource
[VIA THE REAL REPORTER, WRITTEN BY JOE CLEMENTS]
WESTBOROUGH — Having just leased up a Waltham building amidst the region’s slogging office sector, Ferris Development Group has bucked 2023 malaise again via this week’s harvesting of 4 Technology Dr. in one of the region’s most challenged submarkets, Interstate 495 West, as anchor tenant Eversource Gas Co. acquires the first-class property at a consideration of $23.7 million through CBRE, the figure pushed from $21.3 million thanks to a land parcel accompanying the leafy eight-acre corporate campus FDG secured in spring 2015 for a mere $12.9 million.
In buying 4 Technology Dr. eight years ago, the hands-on firm led by founder David M. Ferris filled the two-story, 117,000-sf building implementing a vertically integrated restoration strategy used in other holdings such as its Waltham property—1432 Main St.—now at 100 percent occupancy as Real Reporter detailed last month. “We are excited to have some rather happy investors today,” Ferris tells Real Reporter regarding the Westborough purchase at $109 per sf eight years ago now fetching $197 per sf and yielding a strong capitalization rate of 7 percent, impressive for Interstate 495 office in the best of climates and even more laudatory up against a western flank beset by a torrent of tempests confounding landlords, the woes stark considering a resurgent 2010s when Route 128 firms seeking rent relief were streaming up the Massachusetts Turnpike until pandemic-induced live-streaming cratered the fortunes of office owners to disastrous levels and almost completely stopped investment sales paired with rising interest rates and inflation. “It is pretty wild to see an office building out there bringing a return like that right now,” one market watcher familiar with Ferris Development says in crediting a “secret formula” centered around tenant amenities, high-end finishes and tailored services engineered in its groundbreaking ownership of Westborough’s iconic One Research Dr., the imposing 285,000-sf facility FDG bought at a bargain-basement $21.5 million in winter 2014 and shortly thereafter landing Genzyme Corp. for 115,000 sf coming out of Framingham and inspiring a wave of other leases after its prior owner—saddled by a $55.5 million purchase price in 2005—opted to forsake the project in advance of FDG’s arrival and hands-on approach.
David Ferris
“It is really about the amenities and providing an environment people look forward to being in,” Ferris says of being able to keep assets viable by embracing the flight-toquality tendencies that are growing even more pronounced. Eversource has a bit more than half of the footprint at 4 Technology Dr.—roughly 60,000 sf—to go along with a quartet of other occupants, and the utility’s growth pattern made its purchase “a natural fit” when also considering new tax law changes favoring ownership of CRE. “It’s good real estate,” adds one CRE veteran who notes users often pay more than what an investor could compete against.
Offering kudos for FDG’s in-house contingent including Chief Operating Officer Brian R. Charville, Account Manager Michelle Lessard, Asset Manager Ryan O’Toole and Accounting Assistant Linda Swanepole, Ferris credits CBRE for providing in-depth guidance on both the leasing and eventual sales fronts, the latter featuring Vice Chairmen Michael Joyce and John Lashar, who negotiated the exchange with Eversource, Lashar a longtime fixture in guiding FDG back to the purchase and leaseup of One Research Dr.
“John is the consummate professional and a real friend,” Ferris says while also crediting Joyce and a deep background in tenant relations and also namesake cofounder of the Richards Barry Joyce & Partners shop that later merged with CBRE. “They all do excellent work,” Ferris says of his in-house talent and the CBRE advisors, with FDG also ably assisted by CBRE Vice President Danielle Simbliaris and Client Services Assistant Kendall Rowley. “It is a total, integrated effort,” Ferris says of continued accomplishments from the brokers and members of his firm that will celebrate its 15th anniversary in 2024.
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.”
Ferris Capital acquired; 250 Turnpike Rd Development plans
[VIA MY SOUTHBOROUGH]
Here’s a business story that pulls together news on Town government, economics, a resident, and even our school system.
Last week, a Kansas based investment adviser announced the acquisition of Southborough based Ferris Capital. The announcement by Creative Planning touted Ferris’ $755 million in AUM (Assets Under Management). The announcement described:
David M. Ferris, CEO and CIO of Ferris Capital, created a wealth management firm that was as driven, fast-paced, and determined as he was to provide a top-of-the-line experience to his clients. The 10-year-old firm now has a team that is adept at managing generational wealth, succession planning, investment management, real estate, retirement planning, private equity, and much more.
You can read more about that here.
One week before the announcement, Ferris made a very different announcement – inviting families with kids to come over to 118-120 Turnpike Rd to catch large trout they just stocked their ponds with. (Check out those details here.)
Sanofi Genzyme Expands by 47 percent
[VIA BOSTON REAL ESTATE JOURNAL]
BOSTON – Transwestern | RBJ announced that it represented Ferris Development Group LLC in a 53,879-square-foot lease expansion with Sanofi Genzyme, at One Research Drive in Westborough, MA. Partners John Lashar and Paul Leone, along with Associate McKenna Teague, represented Ferris Development in the 47 percent expansion.
With Sanofi Genzyme’s total footprint now at 167,901 square feet, the building is more than 96 percent occupied. Ferris Development Group purchased One Research Drive in February 2014 when it was 50 percent vacant for $21.5 million. Sanofi Genzyme moved into 114,022 square feet in fourth-quarter 2014.
Genzyme signs big lease for office space in Westborough
[VIA BOSTON GLOBE]
Genzyme Corp., a Cambridge biotechnology company, has signed a seven-year lease for 114,000 square feet of space at an office building in Westborough. Later this year, it plans to relocate operations from a satellite office in Framingham, Ferris Development Group said.
The 283,000-square-foot building at One Research Drive was bought in November by 25 clients of Ferris Capital LLC, along with seven other investors for $21.5 million.
At the time, the building was 50 percent vacant. With the Genzyme lease, it will have 93 percent occupancy, Ferris Development said.
Using its in-house construction team, Ferris Development embarked on significant renovations to the building, it said. They included a new lobby and a new stone facade entrance, along with the creation of a patio.