athenahealth Finalizes $168.5M Acquisition of Arsenal on the Charles in Watertown | Boston Citybizlist

http://boston.citybizlist.com/article/athenahealth-finalizes-1685m-acquisition-arsenal-charles-watertown[25/05/2013 12:52:56 AM]

Contribute Advertise Promote Sign up for: Email Newsletter Deals Follow Us:

News User News Choose A Market Videos

Citybizlist Partner News BECOME A

athenahealth Finalizes $168.5M Acquisition of Arsenal on theCharles in Watertown

Watertown, MA-based athenahealth, Inc. has finalizedthe acquisition of the Arsenal on the Charles, a 760,000square foot, 11-building complex on 29 acres on theCharles River in Watertown, MA, for $168.5 million.

The seller was Boston-based Harvard University.

athenahealth originally moved into the property in 2005 asa tenant, occupying 133,000 square feet. The company hadbeen seeking up to an additional 500,000 square feet forits corporate headquarters.

The purchase, which marks the largest user-buyer transaction in Boston to-date in 2013, is theculmination of an extensive two-year search and analysis of existing properties and development sitesthroughout the Boston market by athenahealth and Avison Young. Given the lack of existing productand the high expense of new construction, coupled with the fact that athenahealth's employees enjoytheir current location and amenities, the Arsenal on the Charles made sense as a long-term solution on

May 13, 2013

Share This:

athenahealth Finalizes $168.5M Acquisition of Arsenal on the Charles in Watertown | Boston Citybizlist

http://boston.citybizlist.com/article/athenahealth-finalizes-1685m-acquisition-arsenal-charles-watertown[25/05/2013 12:52:56 AM]

PARTNER

Davis, Malm & D'Agostine - Davis MalmShareholder Robert J. Galvin Quoted in NotedCondominium Resource Hoaleader.com

Pierce Atwood - Bruce Miller to Present at "Not JustAnother SBA Seminar"

Davis, Malm & D'Agostine - Tamsin R. KaplanPresents to the Woman to Woman Group at NewDirections, Inc.

Pierce Atwood - Cliff Ruprecht & Gavin McCarthyPresent at MSBA Litigation Institute

Small Business MarketingBoston Local Business Directory

Boston Local Business NewsLOCAL ONLINE MARKETING BY LOCALVOX

Local Business News

Deal: 360 Sports Court MemorialDay Sale Save 10% at 360 Sports& SynGrass

Cambridge Eating Disorder Center -New Treatment Challenges inEating Disorders Talk Set ForTonight

a much lower overall-cost basis.

Avison Young Principals Steve Cook in Boston and Suzanne Martinez in Chicago represented thebuyer, athenahealth. Harvard University represented itself in the transaction, which closed May 10,2013.

The Arsenal on the Charles is currently more than 90 per cent leased. athenahealth currently occupies250,000 sf. Other major tenants include Harvard Business School Publishing (100,000 sf), BrightHorizons (90,000 sf) and Boston Sports Clubs (50,000 sf).

Harvard acquired the property in 2001 with the intention of utilizing the campus for futureinstitutional needs. Following the economic downturn, Harvard recalibrated its vision for propertiesbeyond its core campus. The University utilized property closer to the Harvard campus forinstitutional needs and successfully leased the Arsenal on the Charles, bringing a range of businessesto the area. athenahealth saw an opportunity to acquire an asset that both met the company's futuregrowth needs and reflected the firm's culture.

"What is most impressive about athenahealth's growth, from a small startup to a publicly-tradedcorporate powerhouse with nine locations worldwide, is that athenahealth has been able to maintain itsvibrant company culture throughout," said Cook. "athenahealth puts a high priority on its employees,sustainability and doing the right thing."

"The Arsenal on the Charles offers athenahealth everything we could ask for in a headquarters; itsopen and expansive architecture, outdoor campus feel, strong community, and proximity to Boston fitwith our culture, strengthen our standing as a top employer, and provide an inspirational backdrop aswe work to be medical caregivers' most trusted service," says Jonathan Bush , Chair and CEO ofathenahealth in a statement. "We are building a national health information backbone that will have arevolutionary impact on the cost and quality of health care. I cannot imagine a better place than thevery same buildings from which the first Industrial Revolution rose to take on such inspiring andimportant work."

Posted in Commercial Real Estate and tagged with .

Why Open a Browser, get citybizlist in your InBox. SIGN ME UP