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Angelo Gordon acquires Boston offices, closes $160m net-lease fund

In the same week, the New York private equity firm has acquired $74m in Boston properties and closed a net-lease fund on $160m.

It’s been a busy week for Angelo Gordon. A joint venture between the New York private equity firm and property company National Development has reportedly acquired five office buildings in Downtown Boston’s Seaport District for $74.3 million (€58 million). The seller was Boston-based Berkeley Investments.

The five buildings are comprised of 333,000 square feet of space and are located near Five Point Channel. Berkley acquired the five office buildings as part of a portfolio it bought from Boston Wharf in 2004 for $100 million.

The properties are reportedly 85 percent leased and the new owners are looking at redeveloping some of the buildings’ lower floors for restaurant or retail space.

Angelo Gordon also closed on $160 million in capital for its AG Net Lease Realty Fund, which will look to acquire net-leased corporate real estate properties throughout the US. Including leverage, the fund will look to provide around $500 million worth of net lease financing to non-investment grade companies and financial sponsors.

“Net lease is the logical marriage of Angelo Gordon’s historical strength in leveraged credit and principal real estate investing,”  John Angelo, co-founder and chief executive officer of the firm, said in a statement. “Utilizing this platform, unparalleled in the net lease industry, we believe we can offer unique financing to sponsors and leveraged companies, while generating attractive risk adjusted returns for our investors.”