30.03.2021
LEADING CITIES INVEST acquires a medical center in downtown Boston
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Long term tenant in the fastest growing business sector in the US
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LEADING CITIES INVEST now has 35 properties in 25 locations in 10 countries
Long term tenant in the fastest growing business sector in the US
LEADING CITIES INVEST now has 35 properties in 25 locations in 10 countries
The LEADING CITIES INVEST goes to America. The first property acquired by the fund management in downtown Boston was a medical center at 147 Milk Street. Atrius Health has occupied the 16,000 square meter corner building since the early 1980s and is committed to the building long term due to its strategic location and suitability for a medical center. Atrius Health employs more than 50 specialists, licensed nurses, and therapists in departments such as sports medicine, radiology, family medicine, internal medicine, and chiropractic in the ten-story building. With approximately 18 percent of GDP, Healthcare is the fastest growing and the largest economic sector in the USA. While the LEADING CITIES INVEST is predominantly focused on office use, the acquisition of 147 Milk Street, increases the funds' diversification in 35 individual properties at 25 locations in 10 countries over 2 continents. The parties to the transaction agreed not to disclose the purchase price.
Located in the financial district of downtown Boston, 147 Milk Street benefits from an attractive and highly accessible location, which is essential for a medical facility. Parking and public transport are excellent, providing easy access and direct connection to all the city´s major hospitals. The center also benefits from a large local workforce who can access the facility on foot.
Boston is one of the most attractive and dynamic real estate markets in the USA and is considered a "must-have" investment market and the most powerful gateway city on the east coast of the USA. Boston is classified as a „Leading City International“. As part of the C-Score model for the office type of use, the location is given the grade of “very good”. The evaluations of the structural and location quality, as well as the evaluation of the real estate market, add to the result.
Boston scores particularly well in terms of the number of inhabitants, the agglomeration, as an attractive location for international retailers, as an important global financial center, in its innovative strength, in its connection to the high-speed rail network, in its high quality of life, in its transport infrastructure, as a popular student city as well under environmental aspects. The office market is characterized by high market liquidity, high demand for space, high prime rent levels, moderate vacancy rates, and a moderate construction pipeline.
Investing in the US real estate market is part of the KanAm Grund Group's DNA, with the KanAm Group's real estate experience in North America going back to 1978. The US branch in Atlanta enables the KanAm Grund Group to be present in the important and highly attractive market even in times of the Covid-19 pandemic and the associated restrictions and to actively implement the KanAm Grund Group's investment strategy.
The positive rating of LEADING CITIES INVEST with the grade “a + AIF” was confirmed by the renowned rating agency Scope 2020 for the fourth time in a row. According to Scope, the LEADING CITIES INVEST has the best real estate portfolio within the commercial real estate funds. Also, in November 2020 the KanAm Grund Group received the Scope Award 2021 as the best asset manager in the “Retail Real Estate Europe” category. The strengths of LEADING CITIES INVEST in the Covid-19 crisis were also particularly emphasized here. There are no hotels in the fund that have been particularly hard hit by the Covid 19 crisis.