Alex. Brown Realty and Sovereign Partners Acquire Suburban-Boston Office Building

Ferncroft Coporate CenterBaltimore, MD – Alex. Brown Realty (ABR) and Sovereign Partners announce the acquisition of the Ferncroft Corporate Center, an office building in Middleton, Massachusetts. ABR Chesapeake Fund IV, a value-add real estate fund sponsored by ABR, invested $7.5 million in the venture. The acquisition will be financed via a loan from Webster Bank.

The Ferncroft Corporate Center is a 234,000 sf, eight-story Class A office building that was developed in 1990 as a build-to-suit regional headquarters for Verizon. The center is located off of Route 1, a major north/south arterial that connects coastal New Hampshire to downtown Boston.

Ferncroft includes redundant building systems (an important element for tech-market companies), an 18,000 sf cafeteria, fitness center and conference center. In addition, Ferncroft offers a 4.4:1 parking ratio, with 75% of the spaces located in a three-story parking garage connected to the office tower via a covered walkway. As part of the business plan, the joint venture will complete targeted capital improvements, including curing deferred maintenance, installing a new monument sign and updating the cafeteria.

“This was a great opportunity to purchase a well-located, Class A office building in a highly desirable market at an attractive basis,” stated Cyrus Sakhai, founding partner of Sovereign Partners. “Tightening market conditions should allow us to lease the remaining vacancies in a timely manner and create substantial value.” Sovereign, who specializes in acquiring and managing suburban office properties, will manage Ferncroft.

The purchase of the Ferncroft Corporate Center is the second transaction between ABR and Sovereign. “Our previous partnership with Sovereign proved to be very favorable for our investors and we look forward to working with them once again,” noted Tom Burton, ABR’s chief investment officer.

Alex. Brown Realty is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States.

Sovereign Partners is a privately held real estate investment organization that specializes in the acquisition of quality assets throughout the United States. With interests in over six million square feet of property, Sovereign Partners is actively engaged in acquiring properties to enhance their value through effective management and aggressive marketing.