Campanelli, Texas Co. Uniting on GS Portfolio and Westwood Asset

BRAINTREE- continuing to take advantage of an upside-down commercial real estate market in Greater Boston, the Campenelli Cos. is joining forces with a Dallas based private equity firm to acquire a portfolio of troubled assets scattered across eastern Massachusetts and southern New Hampshire. Separately, the partnership with TriGate Capital is angling to buy a 100,000-sf flex/industrial building at 30 Perwal St. in Westwood.

“That’s it,” one broker says in response to inquires of a rumored Campanelli/TriGate focus on Westwood, with the source maintaining 30 Perwal St. is already under contract. The property has been owned on a long-term basis by Analog Devices, but is in the process of being emptied out by that firm, conveys the broker. Sources could not say how much the buyers are paying for 30 Perwal St.

The portfolio deal has been in process for much of the summer, with Campanelli playing the role of a stalking horse whose bid of $15.8 million was better than any competing offers. An auction was held last month to see whether there were any higher bidders, and now Campanelli and TriGate are awaiting a final blessing from the court-appointed receiver. The assets in question include 700 and 900 Technology Park Dr. in Billerica; 5 and 10 Cornell Pl. in Wilmington; 255, 261 and 265 Ballardvale St. in Wilmington. An eighth building is located at 9 Townsend West in Nashua NH.

Confidentiality agreements have kept parties involved in the so-called GS Portfolio from discussing the outcome, but observers spoken to predict Campanelli will employ a past, proven strategy to repositioning the underperforming properties through capital improvement and lease-up programs. “They’ll know what to do with them,” predicts one CRE expert who maintains the buildings taken back generally have solid fundamentals but were lacking the capital and patience to address the competitive leasing market.

Eastdil Secured has been marketing the GS portfolio on a team that includes Peter Joseph, Sarah Lagosh, James McCaffrey and Christopher Phaneuf. The same group is selling another property included in that listing separately, that being a building on Rogers Street in Lowell. According to one source, that asset will fetch about $2 million, bringing the total consideration from the portfolio sale to nearly $18 million. “That’s· strong pricing, considering,” says one market watcher who notes that much of the space is sitting empty. Closing on the GS portfolio is expected in mid-September, relays one source, while the buyers for that package are said to be September 2, 2010 in due diligence on 30 Perwal St. That source also claims Campanelli and TriGate “are looking to do other deals together” going forward. “It’s a good connection for both of them,” maintains the source, citing Campanelli’s knowledge of Greater Boston and TriGate’s access to equity.

Source: The Real Reporter