Verizon has signed a 200,000 square foot, 10-year lease at the Reservoir Woods East Campus in Waltham, Mass. The transaction includes extending an existing lease for 140,000 square foot and the build out of an additional 60,000 square feet of new Class A office and lab space, which will become the Verizon Technology Innovation Center.

Construction of the Verizon Technology Innovation Center is slated to begin in the coming months and the new building will be developed to LEED Silver standards of the United States Green Building Council (USGBC).

Andrew Majewski from CB Richard Ellis represented Davis Marcus Partners in the transaction and David Wright and Amy Perlman, also of CB Richard Ellis represented Verizon. Reservoir Woods is owned by a venture between affiliates of Davis Marcus Partners, a venture between Marcus Partners and The Davis Companies, in partnership with Prudential Real Estate Investors (PREI) on behalf of institutional investors.

Reservoir Woods East is a 54-acre office/research and development property purchased by Davis Marcus Partners in partnership with Prudential Real Estate Investors in December 2006. Together, Reservoir Woods East and West comprise a 120-acre wooded campus. Centrally located between the Mass Turnpike and Route, 2, Reservoir Woods is surrounded by the corporate headquarters for Raytheon Corporation, the Massachusetts Medical Society, and the North American Discovery Center for Astra Pharmaceuticals..

Dick Lynch, Verizon executive vice president and chief technology officer, said, "Verizon reviewed many market alternatives as we thought about this expansion and decided to increase our presence at Reservoir Woods East due to its excellent location and because we feel comfortable that we will be able to take occupancy of a highly specialized building in a short period of time. The professionals at Davis Marcus Partners have consistently delivered creative solutions to our tenant growth needs and we are pleased to work with them in this venture."

Multimillion-Dollar Investment in Verizon Technology Innovation Center Includes New Building, R&D Labs, Executive Briefing Center at Existing Verizon Technology Campus

BASKING RIDGE, N.J., and WALTHAM, Mass., - Verizon broke ground today on its new Technology Innovation Center in Waltham, Mass. The center will be a catalyst for delivering new and innovative devices and services that connect people, places and things, using next-generation wireline and wireless technology.

The Verizon Technology Innovation Center will be the first-of-its-kind collaboration hub for expanding the telecommunications ecosystem by taking advantage of the convergence of new technologies to offer customers powerful new products and services.

The brainchild of Dick Lynch, Verizon executive vice president and chief technology officer, the Verizon Technology Innovation Center is designed to provide a central base for Verizon's advanced technology initiatives. It will house office and lab space for some of the country's leading technologists and scientists as well as a state-of-the-art Executive Briefing Center where partners, consumer electronics companies, innovation collaborators, business executives and public officials can meet to discuss and collaborate on forward-looking technologies such as FiOS and next-generation 4G Long Term Evolution (LTE) wireless technology. Application and advancement of these new technologies will be a key focus.

Together with the Verizon Technology Campus at Waltham - which houses Verizon technical staff focused on end-to-end architecture, design and testing of the Verizon network as well as IT applications development - the Technology Innovation Center will employ a total of more than 300 leading technologists. The additional space will provide the facilities, partner meeting spaces and collaboration areas that are necessary to keep the Waltham campus a world-class center.

Work at the Verizon Technology Innovation Center will include:

• Planning for the continued integration of Verizon wireline and wireless networks
• Providing a home base for the development of the first nationwide 4G LTE network in the U.S., now undergoing user trials in the Boston area
• Expanding support for third parties that are working on new devices and applications for use on Verizon's networks
• Ongoing testing to ensure continued global network interoperability with other worldwide network companies, including British Telecom, Deutche Telekom, France Telecom, NTT and China Telecom

• Optimizing and advancing the portion of the Internet provided and maintained by Verizon
• Maximizing connectivity and performance of Verizon's customers to the Internet
• Conducting user experience testing and focus groups for products such as FiOS TV and FiOS broadband
• Developing ideas and applications for the National Science Foundation's Global Environment for Network Innovations (GENI) project for Web 2.0

Verizon's Lynch said, "Verizon is recognized as a global leader in innovation and technology, and the Verizon Technology Innovation Center will allow our world-class scientists and IT professionals to continue to have the leading-edge resources they need to develop the technologies, products and services that can dramatically change the way we live. As a Massachusetts native, I'm extremely pleased to be here shaping Verizon's technology investments and creating Verizon's future technology vision in the Bay State."

The Verizon Technology Innovation Center is scheduled to be completed in early 2011 and will include a 60,000-square-foot, three-story facility located in the Reservoir Woods East Campus off of Winter Street in Waltham. The property is owned by Davis Marcus Partners, a venture between Marcus Partners and The Davis Companies, in partnership with Prudential Real Estate Investors (PREI). The new building, designed by noted Boston architect Howard Elkus of Elkus-Manfredi, will be developed to LEED Silver standards of the United States Green Building Council.

When the Verizon Technology Innovation Center is complete, the current 136,000-square-foot Verizon Technology Campus in Waltham will be expanded to a total of 196,000 square feet.

Waltham was selected as the site for the new center because of the company's partnership with local high-tech innovators, including Airvana, Starent (now part of Cisco), Camiant, Acme Packet, NetNumber and Sonus Networks, and because of the site's proximity to other local entrepreneurial tech firms and the wealth of Massachusetts' academic and research institutions.

The Waltham location also supports Verizon's leadership in the Massachusetts IT Collaborative, an organization formed by Gov. Deval Patrick and composed of business, academic and government leaders who are working to create more investment opportunities and jobs in the IT sector in the Bay State.

Greg Bialecki, Massachusetts secretary of housing and economic development, noted, "The Verizon Technology Innovation Center brings a new generation of wireless technology innovation and opportunity here to Massachusetts. This investment is key to supporting the state's constantly growing technology sector, and is a prime example of what is possible here in the Commonwealth."

The site in Waltham also serves as the hub of wireless technology and user trials in the Boston area. Verizon Wireless has been testing its forthcoming 4G LTE network in Boston since August 2009 and is on track to deliver an outstanding wireless data experience to customers in the area, as well as in 25 to 30 other markets, covering roughly 100 million people by the end of this year. Verizon Wireless is currently installing LTE equipment at existing cell sites and switching centers around the U.S. as part of its extensive, ongoing investment in its voice and data network infrastructure.

About Verizon

Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in New York, is a global leader in delivering broadband and other wireless and wireline communications services to mass market, business, government and wholesale customers. Verizon Wireless operates America's most reliable wireless network, serving more than 91 million customers nationwide. Verizon also provides converged communications, information and entertainment services over America's most advanced fiber-optic network, and delivers innovative, seamless business solutions to customers around the world. A Dow 30 company, Verizon employs a diverse workforce of approximately 222,900 and last year generated consolidated revenues of more than $107 billion. For more information, visit www.verizon.com.

Multimillion-Dollar Investment in Verizon Technology Innovation Center Includes New Building, R&D Labs, Executive Briefing Center at Existing Verizon Technology Campus

BASKING RIDGE, N.J., and WALTHAM, Mass., - Verizon broke ground today on its new Technology Innovation Center in Waltham, Mass. The center will be a catalyst for delivering new and innovative devices and services that connect people, places and things, using next-generation wireline and wireless technology.

The Verizon Technology Innovation Center will be the first-of-its-kind collaboration hub for expanding the telecommunications ecosystem by taking advantage of the convergence of new technologies to offer customers powerful new products and services.

The brainchild of Dick Lynch, Verizon executive vice president and chief technology officer, the Verizon Technology Innovation Center is designed to provide a central base for Verizon's advanced technology initiatives. It will house office and lab space for some of the country's leading technologists and scientists as well as a state-of-the-art Executive Briefing Center where partners, consumer electronics companies, innovation collaborators, business executives and public officials can meet to discuss and collaborate on forward-looking technologies such as FiOS and next-generation 4G Long Term Evolution (LTE) wireless technology. Application and advancement of these new technologies will be a key focus.

Together with the Verizon Technology Campus at Waltham - which houses Verizon technical staff focused on end-to-end architecture, design and testing of the Verizon network as well as IT applications development - the Technology Innovation Center will employ a total of more than 300 leading technologists. The additional space will provide the facilities, partner meeting spaces and collaboration areas that are necessary to keep the Waltham campus a world-class center.

Work at the Verizon Technology Innovation Center will include:

• Planning for the continued integration of Verizon wireline and wireless networks
• Providing a home base for the development of the first nationwide 4G LTE network in the U.S., now undergoing user trials in the Boston area
• Expanding support for third parties that are working on new devices and applications for use on Verizon's networks
• Ongoing testing to ensure continued global network interoperability with other worldwide network companies, including British Telecom, Deutche Telekom, France Telecom, NTT and China Telecom
• Optimizing and advancing the portion of the Internet provided and maintained by Verizon
• Maximizing connectivity and performance of Verizon's customers to the Internet
• Conducting user experience testing and focus groups for products such as FiOS TV and FiOS broadband
• Developing ideas and applications for the National Science Foundation's Global Environment for Network Innovations (GENI) project for Web 2.0

Verizon's Lynch said, "Verizon is recognized as a global leader in innovation and technology, and the Verizon Technology Innovation Center will allow our world-class scientists and IT professionals to continue to have the leading-edge resources they need to develop the technologies, products and services that can dramatically change the way we live. As a Massachusetts native, I'm extremely pleased to be here shaping Verizon's technology investments and creating Verizon's future technology vision in the Bay State."

The Verizon Technology Innovation Center is scheduled to be completed in early 2011 and will include a 60,000-square-foot, three-story facility located in the Reservoir Woods East Campus off of Winter Street in Waltham. The property is owned by Davis Marcus Partners, a venture between Marcus Partners and The Davis Companies, in partnership with Prudential Real Estate Investors (PREI). The new building, designed by noted Boston architect Howard Elkus of Elkus-Manfredi, will be developed to LEED Silver standards of the United States Green Building Council.

When the Verizon Technology Innovation Center is complete, the current 136,000-square-foot Verizon Technology Campus in Waltham will be expanded to a total of 196,000 square feet.

Waltham was selected as the site for the new center because of the company's partnership with local high-tech innovators, including Airvana, Starent (now part of Cisco), Camiant, Acme Packet, NetNumber and Sonus Networks, and because of the site's proximity to other local entrepreneurial tech firms and the wealth of Massachusetts' academic and research institutions.

The Waltham location also supports Verizon's leadership in the Massachusetts IT Collaborative, an organization formed by Gov. Deval Patrick and composed of business, academic and government leaders who are working to create more investment opportunities and jobs in the IT sector in the Bay State.

Greg Bialecki, Massachusetts secretary of housing and economic development, noted, "The Verizon Technology Innovation Center brings a new generation of wireless technology innovation and opportunity here to Massachusetts. This investment is key to supporting the state's constantly growing technology sector, and is a prime example of what is possible here in the Commonwealth."

The site in Waltham also serves as the hub of wireless technology and user trials in the Boston area. Verizon Wireless has been testing its forthcoming 4G LTE network in Boston since August 2009 and is on track to deliver an outstanding wireless data experience to customers in the area, as well as in 25 to 30 other markets, covering roughly 100 million people by the end of this year. Verizon Wireless is currently installing LTE equipment at existing cell sites and switching centers around the U.S. as part of its extensive, ongoing investment in its voice and data network infrastructure.

About Verizon

Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in New York, is a global leader in delivering broadband and other wireless and wireline communications services to mass market, business, government and wholesale customers. Verizon Wireless operates America's most reliable wireless network, serving more than 91 million customers nationwide. Verizon also provides converged communications, information and entertainment services over America's most advanced fiber-optic network, and delivers innovative, seamless business solutions to customers around the world. A Dow 30 company, Verizon employs a diverse workforce of approximately 222,900 and last year generated consolidated revenues of more than $107 billion. For more information, visit www.verizon.com.

BOSTON—As Hub-based real estate investment firm Marcus Partners continues to gear up for a national buying spree, founder and namesake Paul Marcus has brought on another seasoned professional, hiring David Keiran as a principal and chief financial officer to oversee the company’s financial activities and manage investor relations. Most recently at the New Boston Fund, where he was an SVP and director of investor relations, Keiran has more than 25 years experience in accounting, client service, finance, portfolio management and taxation matters.

“David’s institutional real estate experience and relationships will complement our management and investment strategy and enhance our ability to provide the highest level of reporting and client service,” Paul Marcus says in a release welcoming Keiran to the firm, which recently raised $210 million of new capital in anticipation of what he terms “a wave of opportunistic properties” that will emerge in the coming years.

Keiran concurs with the notion that deteriorating industry fundamentals “should translate into attractive asset pricing,” and says he looks forward to the new position. Prior to NBF, Keiran was a partner at TA Associates Realty, where his responsibilities included marketing and asset management of commercial and multifamily assets. Other knowledge was gleaned earlier in his career at PriceWaterhouse where he specialized in banking, investments and real estate.

David Keiran has been hired as a principal and chief financial officer at Marcus Partners, a Boston-based real estate investment firm.

Keiran will oversee the company's financial activities and to manage investor relations.

He has more than 25 years of experience in many facets of real estate investment and management, including accounting, taxation, finance, marketing, client service and asset and portfolio management.

Before joining Marcus Partners, Keiran was senior vice president and director of investor relations for New Boston Fund. Prior to New Boston, Mr. Keiran was a partner at TA Associates Realty.

"We are pleased that David has joined the firm to round out our team of real estate investment professionals," said, Paul Marcus, managing principal. "His institutional real estate experience and relationships will complement our management and investment strategy and enhance our ability to provide the highest level of reporting and client service."

Having recently raised more than $210 million of new investor capital, Marcus Partners is anticipating a wave of opportunistic properties coming to market over the next few years, the company said in a statement.

"Downward pressure on real estate pricing continues to build as the excesses of the past few years are reversed. The caution on the part of buyers, combined with guarded lenders, deteriorating market fundamentals and more assets being brought to market should translate into attractive asset pricing. We realize that we need to be patient and let the markets unfold and are excited about the opportunities that lay ahead," said Keiran.

Marcus Partners plans to dip into its new $210 million fund to invest in the D.C. area.

The Boston-based real estate investment firm wants to target a mix of properties -- including office, bio-medical, medical office, and light industrial properties -- in metro areas east of the Mississippi River with Marcus Capital Partners Fund I.

Marcus Partners plans to invest $400 million into value-oriented real estate or related assets, shooting for individual deals in the range of $10 million to $130 million.

Institutional investors -- which include pension plans and endowments -- put up the bulk of the capital and smaller contributors include family offices and high-net-worth individuals. The fund took a little less than a year to raise, according to Kyle O’Connor, who will manage the fund and oversee the company’s investment activities in the D.C. and mid-Atlantic region.

“You have to prepare yourself for capital commitments prior to getting to the point where interesting investments come up so that you can take advantage of them when the time is right,” he said. “The formation period precedes the investment period.”

He says the fund is actively pursuing investment opportunities in the D.C. area, with a concentration on office space, and has submitted investment offers in a variety of buildings that have come on the market. He notes that it may take some time before any deals close.

“In the long-term view we do believe in Washington as a marketplace but the investment markets are fairly anemic right now.”

BOSTON—Even with plenty of fresh capital in its pocket to spend on commercial real estate, the Marcus Capital Partners Fund I is proceeding ahead frugally and cautiously, namesake Paul R. Marcus stressed this week in announcing the closing of the $210 million vehicle that will be used to secure more than $400 million of product from New England to Florida.

“Patience is going to be critical,” advises Marcus. While encouraged that much of the denial on valuations has been wrung out of the market, Marcus says it will take time for prices to adjust appropriately and assets to be packaged for sale. “We are not expecting a VBY shaped recovery,” he says. “We expect it is going to be longer and slower than what people might be hoping for.” Over the next six to 18 months, however, Marcus anticipates there will be the evolution of “a new normal” that reflects the realities of the brutal market correction. That is when the best values will emerge, he predicts.

As such, Marcus Fund I is in no rush to expend its money haphazardly, although the capital’s tentacles are already out in markets throughout the East Coast thanks to a team of investment managers that has been infused by the arrival of mid-Atlantic specialist Kyle O’Connor. Coming on board as a principal, O’Connor brings more than 17 years experience, having secured approximately $4 billion in assets for clients while at such firms as Metzler North America and AEW Capital Management. “Kyle really gives us great coverage in Washington and every major mid-Atlantic market,” says Marcus, adding to a team that includes William McAvoy in Boston, David Fiore covering the Connecticut and New York sector and J. Mark Stroud, who oversees the southeast.

“We are going to go where the opportunities are,” Marcus says in assessing the fund’s geographic goals, albeit generally restricted to areas east of the Mississippi River. Investments will be equally flexible. Deal size will range from $10 million to $130 million, he estimates. Efforts will be focused on acquiring assets at discounts to replacement cost; recapitalization of distressed owners; and debt made available from pending loan maturities and defaults. Hotels and residential properties are not high on the shopping list, but product types Marcus Partners is familiar with such as life sciences, industrial and retail will get attention, says Marcus.

Realistically, Marcus says he expects investment sales velocity will not stabilize until late 2009 or early next year. In the meantime, he calls himself “humbled” by the robust reaction of institutions and high-networth individuals contributing to the fund in advance of that rebound. “Over the past 25 years, we have developed meaningful and trusting relationships with investors, and are excited about the investment opportunities that we are starting to see on the horizon,” says Marcus. “We look forward to placing the fund’s equity into investments that are both profitable and strategic.”

Newly-formed Marcus Partners has raised $210 million for its debut private equity real estate fund, and is expected to formally close the vehicle at the end of the year with up to $250 million in commitments.

The Boston-based investment firm has raised the capital from high-net-worth individuals and institutional investors, who have had previous relationships with founder Paul Marcus.

Marcus set up the firm in June 2008 after he split from longtime business partner Jonathan Davis. The pair had run development company Davis Marcus for around 15 years.

Several former Davis Marcus executives were hired by Marcus. Former AEW Capital director Kyle O’Connor also joined the firm recently as principal to manage Marcus Capital Partners Fund I and have responsibility for investments in Washington DC and the mid-Atlantic region.

He told PERE the firm was in no rush to deploy the capital saying: “It’s fairly early in the down-leg of the cycle but every day we are starting to see more and more interesting opportunities.”

The seven-year, closed-ended fund is aiming for IRRs in the upper-teens, he added, employing a value-added strategy targeting office, medical office and light industrial properties and debt in metropolitan cities in the East of the US. He added that strategy classifications were “blurred” in today’s environment, and that Marcus Partners could do a mix of core and opportunistic-style investing. “In this market flexibility is needed,” he said.

Real estate investment firm Marcus Partners has closed Marcus Capital Partners Fund I, which will pursue diversified investments, including office, biomedical, medical office, and light industrial properties. The fund’s geographical focus will be on major metropolitan areas east of the Mississippi River.

Marcus Partners closed $210 million of capital commitments and is actively looking to invest $400 million in value-oriented real estate assets. Most investors are institutions and family offices, as well as high-net-worth individuals.

It will invest $10 - $130 million in each deal, with a focus on buying assets at discounts, recapitalization of distressed or overleveraged owners, taking advantage of pending loan maturities and defaults, purchasing distressed debt and investing in select capital-constrained situations.

The news comes after the recent hire of Kyle O’Connor, who will manage Fund I and oversee the investment activities in the Washington, D.C. market and the Mid-Atlantic region. O’Connor comes aboard as a principal, after having served as Metzler North America and AEW Capital Management.

BOSTON-Locally based Marcus Partners is closing its Marcus Capital Partners Fund I, which is focusing on office, bio-medical, medical office and light industrial properties in major cities "primarily east of the Mississippi River," states a release. The fund is currently at $210 million.

The assets being targeted will range from $10 million to $130 million. The fund will invest roughly $400 million dollars as they work out deals with roughly 50% debt, Paul Marcus, president of Marcus Partners tells GlobeSt.com. "We're looking at everything from distressed to just straight up purchases," he explains. "I think the fund will end up being probably about 60% to 70% C interests of either preferred equity or just direct fee ownership interests. And another 30% will be more debt related or 'special situations'."

The fund will seek properties west of the Mississippi under certain conditions, noting it would have to be "a larger transaction that would include assets on both sides" of the river, Marcus says. "We would look at anything from cash-flowing real estate in a partnership-type transaction in a preferred equity structure, which is a lot of stuff that we're talking about now, to buying the assets and turning them around."

Although this is a possibility, the fund has a time-frame of five to seven years, holding onto the majority of the property for four to seven years. "We think we're still early in this cycle," Marcus says. "and we believe there will be an enormous amount of opportunities becoming available over the next six to 24 months."

Looking to take advantage of the current bargains to be had in the investment market, Boston-based real estate investment firm Marcus Partners has closed Marcus Capital Partners Fund I with $210 million in capital commitments. The fund will cast a wide net, pursuing diversified investments including office, bio-medical, medical office and light industrial properties.

The fund will be focused on major metropolitan areas primarily east of the Mississippi River. Leveraging the existing capital commitments, the fund is looking to invest $400 million into value-oriented real estate or related assets.

The fund’s target individual deal size ranges from $10 million to $130 million. It will focus its efforts on acquiring assets at discounts to replacement cost and normalized value, recapitalization of distressed or overleveraged owners, taking advantage of pending loan maturities and defaults, acquiring distressed debt and investing in select capital-constrained situations. Marcus Partners investors are primarily institutions, family offices, as well as high-net-worth individuals.

Marcus Partners joins a spate of other investment funds closing in recent months looking to capitalize on lower pricing in the investment market. On June 30, CPN reported that the Blackstone Group completed the final closing of Blackstone Real Estate Partners Europe III, with a total of approximately $4.3 billion in equity capital commitments.

And in late April, private real estate investment firm Rockwood Capital L.L.C. closed an investment fund with some $964 million in capital commitments. The value-added fund, dubbed Rockwood Capital Real Estate Partners Fund VIII, plans to invest primarily in hotel, retail, office and residential properties in the United States.

Earlier in the spring, CPN reported that apartment complex developer AvalonBay Communities Inc. closed a $400 million investment fund, $125 million of which was funded by the firm itself, with the remainder coming from institutional investors. With leverage, the fund can make up to about $1.1 billion in investments, most of which will be on properties in high barrier-to-entry markets in the Northeast, mid-Atlantic, Midwest and West Coast, the firm said. And on April 9, CPN reported that Wrightwood Capital closed a $243 million fund. The company's High Yield Partners II Fund will be invested in recapitalizations, acquisitions and selected new development projects.

Marcus Partners hired Kyle O’Connor to manage Fund I, as well as to oversee the company’s investment activities in the Washington, D.C., market and the Mid-Atlantic region. O’Connor joined the company as a principal.

Boston-based real estate investment company Marcus Partners recently closed the Marcus Capital Partners Fund I and added Kyle O'Connor to the firm to manage the fund.

Marcus Partners has closed $210 million of capital commitments and is actively looking to invest $400 million into value-oriented real estate or related assets. The company said it targets individual deal size ranges from $10 million to $130 million. It will focus its efforts on acquiring assets at discounts to replacement cost and normalized value, recapitalization of distressed or overleveraged owners, taking advantage of pending loan maturities and defaults, acquiring distressed debt and investing in select capital-constrained situations.

The fund will be used to pursue a diversified list of investments east of the Mississippi River. Marcus Partners investors are primarily institutions, family offices, as well as high-net-worth individuals.

"We are humbled and mindful of the confidence and trust that our investors have placed in us which enabled us to raise capital during these difficult market conditions," said Paul R. Marcus, managing principal of Marcus Partners. "Over the past 25 years we have developed meaningful and trusting relationships with investors and are excited about the investment opportunities that we are starting to see on the horizon. While remaining cautiously optimistic, we look forward to placing the fund's equity into investments that are both profitable and strategic in order to deliver significant returns for our investors."

The company recently hired Kyle O'Connor to manage Fund I, as well as to oversee the company's investment activities in the Washington D.C. market and the Mid-Atlantic region. O'Connor is joining the company as a principal, adding to a team of principals that includes industry veterans William McAvoy, who oversees the Boston region; David Fiore, who directs the Connecticut and New York region; and J. Mark Stroud, who oversees the Southeast region.

O'Connor brings more than 17 years of real estate investment experience to Marcus Partners, including the acquisition of approximately $4 billion in assets on behalf of both commingled funds and separate account clients. He previously worked at Metzler North America and AEW Capital Management.

There’s a new buyer in town: Marcus Partners, a Boston-based real estate investment firm, has closed its first fund and wants to invest between 20% to 40% of it in DC real estate. Fund manager Kyle O’Connor tells us it has $210M of equity: that’s $400M in purchasing power. Marcus recently bid, unsuccessfully, on a few DC offices, one of which just traded. “We view the DC market as being one of the more stable and interesting in the nation.” Right now, though, the pickings are slim, with deal flow “anemic”, Kyle says. “We expect that to change.”

Marcus Partners, a Boston-based real estate investment firm, announced today that the company has closed Marcus Capital Partners Fund I. Fund I will pursue diversified investments, including office, bio-medical, medical office, and light industrial properties, and will be focused on major metropolitan areas east primarily of the Mississippi River.

Marcus Partners has closed $210 million of capital commitments and is actively looking to invest $400 million into value-oriented real estate or related assets. The company’s target individual deal size ranges from $10 million to $130 million. It will focus its efforts on acquiring assets at discounts to replacement cost and normalized value, recapitalization of distressed or overleveraged owners, taking advantage of pending loan maturities and defaults, acquiring distressed debt and investing in select capital-constrained situations. Marcus Partners investors are primarily institutions, family offices, as well as high-net-worth individuals.

“We are humbled and mindful of the confidence and trust that our investors have placed in us which enabled us to raise capital during these difficult market conditions,” said Paul R. Marcus, Managing Principal of Marcus Partners. “Over the past 25 years we have developed meaningful and trusting relationships with investors and are excited about the investment opportunities that we are starting to see on the horizon. While remaining cautiously optimistic, we look forward to placing the fund’s equity into investments that are both profitable and strategic in order to deliver significant returns for our investors.”

The company also announced that it recently hired Kyle O’Connor to manage Fund I, as well as to oversee the company’s investment activities in the Washington, D.C. market and the Mid-Atlantic region. Mr. O’Connor is joining the company as a principal, adding to a team of principals that includes industry veterans William McAvoy, who oversees the Boston region; David Fiore, who directs the Connecticut and New York region; and J. Mark Stroud, who oversees the Southeast region.

Kyle O’Connor brings more than 17 years of real estate investment experience to Marcus Partners, including the acquisition of approximately $4 billion in assets on behalf of both commingled funds and separate account clients. He previously worked at Metzler North America and AEW Capital Management.

“We are thrilled that Kyle has joined and rounded out our experienced team,” Marcus said. “His experience and relationships will allow for a well positioned and seamless entry into this new investment market for us.”

It's hardly a flood of new money. But real estate investors who have huge stockpiles of cash are slowly starting to buy debt positions in buildings - signaling that many investors believe prices are nearing a low point after a yearlong free fall in property values. "There is a seismic shift going on in the market," said Jonathan Davis, chief executive of Davis Cos. "What we're seeing is the unwinding of trillions of dollars of excessive lending that occurred over the last four or five years."

His company recently began buying mortgages on properties whose owners are straining to meet high debt loads, so far about $125 million for buildings in Colorado and Southeastern states where loose lending practices led to a wave of loan defaults. He is now seeking investors for a $200 million fund and has hired executives to help lead the firm's investment efforts.

The volume of buying is expected to increase dramatically in coming months as banks and other lenders seek to unload troubled assets from their balance sheets - potentially at fire- sale prices that will mean heavy losses for the current owners but significant opportunities for buyers.

In Boston, Normandy Real Estate Partners bought enough of the debt on the John Hancock Tower to force its troubled owners into foreclosure, and then swooped in to buy the trophy property at auction two weeks ago for $660.6 million - roughly half of its $1.3 billion sale price in 2006.

It is unclear whether other trophy towers in the city will be affected, but real estate professionals said they expect additional foreclosures.

"There are other buildings around the city where there are rumblings of potential problems that haven't hit yet," said Greg Vasil, chief executive of the Greater Boston Real Estate Board. "It's not easy to build in Boston, but you might find a great deal on something that already exists."

Potential buyers have been on the sidelines for months, wary of overpaying in a down market. Paul Marcus, chief executive of Marcus Partners, said prices are getting to be too good to turn down.

"We're starting to get much more aggressive as the values are coming down," he said. "I think the opportunities will really peak in the third and fourth quarters of this year."

Marcus said he plans to buy $400 million in debt and property during the next several months. He said he has bid on about 15 loans so far, but sellers have not been willing to accept the low amounts he and other bidders offered.

"Only about 20 percent of what's available has traded," he said. "I believe right after Labor Day that number will be 80 percent."

Many investors are waiting to see final details in the Obama administration's plan to help private firms buy so-called toxic assets from banks and other financial firms. The administration's initiatives provide up to $2 trillion in government money to help purchase those assets.

"We're going to be very interested in looking at what role the government can play in creating opportunities," Davis said. "There is going to be a very significant policy intervention. It's clear the Obama administration is committed to that."

To get ready for the buying blitz, Davis has hired Cappy Daume, a former executive with the real estate firm Jones Lang LaSalle, and Mark Consoli, previously chief operating officer of Northland Investment Corp.

Drug maker Alkermes Inc. said it will relocate its corporate headquarters from Cambridge to Waltham, a move it expects to complete early next year.

In a press release, the company said it has signed a lease agreement and will build out a 100,000 square foot facility on Winter Street in Waltham.

Alkermes makes Risperdal Consta, a schizophrenia treatment, and Vivitrol. Vivitrol aims to reduce cravings for alcohol. A March story in the Globe noted that Vivitrol has been a disappointment, in part because many alcohol treatment programs resist prescribing drugs. (To read that story, please click here.)

In its press release, Alkermes noted that it expects the relocation to Waltham to result in annual cash savings in fiscal year 2011 and beyond of about $8 million.

Alkermes is the latest biotechnology company that plans to move operations out of Cambridge in search of cheaper space in the Boston suburbs. (To read a Globe story about that trend, please click here.)

Today's press release included a statement from Jim Frates, chief financial officer of Alkermes.

“By taking advantage of the current real estate market conditions, we are able to improve our business operations by moving to a central location in a brand new facility," Frates said. "This relocation to Waltham offers economic advantages by providing a lower cost of doing business and increasing our flexibility to invest in our proprietary product pipeline. We look forward to being part of Waltham’s business community.”

An Alkermes spokeswoman said that Alkermes has found a company that will sublease its Cambridge space following the move by Alkermes to Waltham. Alkermes is not identifying the company at the company's request, the spokeswoman said.

The signing of the Waltham lease by Alkermes was first reported on the website of the Boston Business Journal. According to the BBJ, Vertex Pharmaceuticals Inc. will sublease Alkermes' Cambridge office space.

(By Chris Reidy, Globe staff)

Alkermes Inc. signed a lease on Wednesday for 100,000 square feet and will relocate its Cambridge headquarters to Waltham, Mass.

The deal, first reported by the Boston Business Journal in February, has been underway for months.

Alkermes (NASDAQ: ALKS) expects to move out of its 142,0000-square-foot Cambridge headquarters at 88 Sidney St. later this year. The company’s Cambridge lease does not expire until 2012 but Vertex Pharmaceuticals Inc. will sublease Alkermes’ Cambridge offices. Vertex’s real estate broker did not immediately respond to a call. "I wouldn't comment on whether we're going to sublease or not," said Zachary Barber, a Vertex spokesman.

Alkermes will downsize and relocate its headquarters to the 180,000 square-foot office and lab building at 850 Winter St. The move will reportedly save the company between $9 and $16 per square foot or about $750,000 a year.

The effort to restructure Alkermes began last March when the biotech company announced it would eliminate 150 jobs and close its Chelsea manufacturing plant. The move reduced the company’s workforce by about 18 percent to 235 people in Cambridge and another 400 employees at an Ohio manufacturing facility. The layoffs were a result of a decision by Eli Lilly and Co. to end a program to produce an inhaled insulin.

Alkermes is the latest in a string of Cambridge biotech companies — including Shire, Altus Pharmaceuticals and ImmunoGen Inc. — that have decided to leave East Cambridge for cheaper suburban locales.

The Waltham building was completed last May and is located in the Reservoir Woods campus. Alkermes will be the first tenant to move into the property which is jointly owned by Marcus Partners, The Davis Cos. and Prudential Real Estate Investors.

The building has been certified as LEED Gold by the U.S. Green Building Council. The Reservoir Woods campus is home to corporate tenants PerkinElmer Inc., Battery Ventures, Fresenius Medical Care and National Grid.

CB Richard Ellis represented the ownership in the transaction and Colliers Meredith & Grew represented Alkermes Inc.

WALTHAM, MASS. — Alkermes has signed a 100,000-square-foot lease at the Reservoir Woods campus in Waltham. The technology company plans to relocate its headquarters from Cambridge to the newly leased space, which is located at 850-852 Winter Street, a new 180,000-square-foot LEED-Gold certified office and lab building. The Reservoir Woods campus sits on 120 acres between the Massachusetts Turnpike and Route 2 at exit 27 off Route 128/US I95. The development is owned by a joint venture between affiliates of Davis Marcus Partners and Prudential Real Estate Investors. CB Richard Ellis represented the ownership in the transaction and Joseph Flaherty of Colliers Meredith & Grew represented Alkermes. The new tenant plans to complete their move by early 2010.

WALTHAM, Mass. -- National Grid today hosted a ribbon-cutting ceremony to commemorate and celebrate the opening of its New England corporate office in the Reservoir Woods East office park at 40 Sylvan Road in Waltham, Mass.

Nearly 100 invited guests, including Massachusetts Secretary of Energy and Environmental Affairs Ian Bowles, were on hand to participate in the ceremony and offer support for the company’s dedication to environmental protection, leadership in energy efficiency and commitment to reducing its carbon footprint. The company’s 312,000 sq. ft. energy saving workspace is believed to be among the region’s most energy-efficient facilities. The design and sustainable construction of the new facility is intended to earn the building a LEED gold rating.

The U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) rating system is the nationally accepted benchmark for the design, construction and operation of high-performance green buildings.

“I applaud National Grid’s leadership in demonstrating clean energy of all sorts in its own facility,” said Secretary Bowles. “Green buildings are a key component of our clean energy future, and National Grid’s new corporate office employs the combination of energy efficiency and on-site renewable energy we need to cut greenhouse gas emissions, reduce our reliance on fossil fuels, and increase energy independence.”

Construction of National Grid’s three-story, mainly glass exterior facility began in June 2007 and incorporates numerous high-performance, energy-saving and environmentally-friendly features. The facility centralizes and consolidates the company’s New England offices into a single facility and will house senior management for the company’s electricity and gas groups and many other administrative teams.

More than 1,800 employees will work at the new facility. Employees will begin occupying the building in shifts starting on May 26, 2009. The move will be completed during late July.

“Our new facility is more than just the hub of New England corporate functions. It is a symbol of transformation and growth that will help us meet our business needs and the needs of our customers well into the future. This building also tangibly demonstrates our commitment to being an innovative leader in energy management and to safeguarding our environment and we are excited to be here, “ said Tom King, president of National Grid in the U.S. “We are pleased to be part of the New England landscape and to occupy a building in which our employees can be proud, and enjoy a healthy, bright, sustainable environment that supports our National Grid culture.”

National Grid’s office includes the following energy saving and environmental features:

• Optimized lighting that requires 40 percent less electricity than a code-compliant building in Mass.; occupancy sensors; task oriented lighting; and daylight sensors at workstations saving more than 800,000 kwh per year – enough to power 133 homes for one year
• High efficiency heating and cooling systems with adaptable controls to sense outdoor and indoor temperatures
• Water conservation measures that are expected to reduce water use by approximately 2.4 million gallons per year through use of dual-flush toilets; automatic sensor faucets and a recycled storm water system
• Approximately 20,000 square feet of roof top solar power panels (736 photovoltaic cells) that generate enough electricity to power about 30 homes each year and offsets 400,000 lbs. of CO2 annually
• Exterior shading devices on southern facing exposures
• A highly reflective white roof
• Superior air quality systems that feature carbon dioxide sensors installed in ventilation ducts; air refreshed at a rate of 1 1/3 air changes per hour from outside air; all adhesives, sealants, paints and coatings contain low quantities of volatile organic compounds (VOC’s)
• Sustainable materials: 28% of the materials and furnishing are recycled; 66% of the wood is sourced from sustainably-managed forests, including café floors made of rapidly renewable bamboo with environmentally preferable glue; carpet tiles consist of 42% pre-consumer recycled materials; workstation fabrics are made of 100% recycled content; recycled aluminum ceiling tiles that are manufactured regionally
• More than 93% of construction waste was recycled

National Grid’s New England corporate office was designed and built in cooperation with Reservoir Woods developer Davis Marcus Partners; project manager Jones Lang LaSalle; interior architect Sasaki Associates; construction manager John Moriarty & Associates; mechanical engineers AHA Consulting Engineers, Inc. and base building architect ADD, Inc.

National Grid is an international energy delivery company. In the U.S., National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island, and manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA). It is the largest distributor of natural gas in the northeastern U.S., serving approximately 3.4 million customers in Massachusetts, New Hampshire, New York and Rhode Island. National Grid also owns over 4,000 megawatts of contracted electricity generation that provides power to over one million LIPA customers.

Drug maker Alkermes Inc. last week became the latest in what has become a growing line of biotech firms leaving Cambridge, Mass., in search of less expensive office and laboratory space in the suburbs. The company plans to relocate to a 100,000-square-foot facility in Waltham early next year, a move that Alkermes says will eventually save some $750,000 a year.

“By taking advantage of the current real estate market conditions, we are able to improve our business operations by moving to a central location in a brand new facility,” noted Alkermes CFO Jim Frates. “This relocation to Waltham offers economic advantages by providing a lower cost of doing business and increasing our flexibility to invest in our proprietary product pipeline.”

Alkermes joins several other biotech companies who have relocated from the relatively costly Cambridge market. Last year, AMAG Pharmaceuticals Inc. moved its headquarters to nearby Lexington, where it will soon be joined by Shire Human Genetic Therapies, which is planning to move its headquarter there as well. Akermes’ new home of Waltham has seen both Atlus Pharmaceuticals and ImmunoGen relocate there from Cambridge.

And developers are at work to try to keep up with the increased demand for suburban space. Last summer, Patriot Partners L.L.C. unveiled plans to build the largest life sciences complex in New England in suburban Burlington. The project is planned to include some 2 million square feet of laboratory and office space.

For Alkermes, however, the move was a bit more complicated than simply picking up sticks in Cambridge. The firm is still under lease at its current facility in Cambridge, which it will sublease to Vertex Pharmaceuticals Inc. until 2012.

The company’s new digs are located in the Reservoir Woods campus, and is owned by a joint venture of Marcus Partners, The Davis Cos. and Prudential Real Estate Investors. Alkermes will be the first tenant to move into the property, which is certified LEED Gold by the U.S. Green Building Council.

Colliers Meredith & Grew represented Alkermes in the lease negotiations, while CB Richard Ellis Inc. represented the building owner.

Davis Marcus Partners has completed a $30.9 million refinancing of a building at its Reservoir Woods East campus in Waltham, Mass.

The $30.9 million loan was secured through Capital One for the building at 117 West St., which is owned in a joint venture between Marcus Partners, The Davis Cos. and Prudential Real Estate Investors. The refinancing includes both the 138,000-square-foot building and a 28.7 acre-parcel that has been permitted for 500,000 square feet of development.

The building at 117 West St. is fully leased to Verizon Communications Inc. (NYSE: VZ).

Reservoir Woods East is a 54-acre parcel that was purchased from Verizon in December 2006 by Davis Marcus Partners with Prudential Real Estate. As part of the deal, Verizon leased back the West Street building from the new owners. The 1.2 million-square-foot Reservoir Woods East and neighboring West campuses are leased to corporate tenants such as PerkinElmer Inc. (NYSE: PKI), Battery Ventures, Fresenius Medical Care and National Grid.

WALTHAM, MASS. —Davis Marcus Partners, a venture between Marcus Partners and The Davis Companies, in partnership with Prudential Real Estate Investors, has completed a $30.9 million refinancing with Capital One for 117 West St. located on its Reservoir Woods East campus in Waltham. The refinancing includes both the 138,000-square-foot recently upgraded building and the adjacent 500,000 square feet of recently permitted, developable land. The building is fully leased to Verizon and houses its FiOS testing, design and engineering functions. Together, Reservoir Woods East and West provide a campus environment with 120-acres of wooded landscape in Waltham between the Massachusetts Turnpike and Route 2 at exit 27 off Rt. 128/US I95.

National Grid celebrated the opening of its new “green” corporate office in the Reservoir Woods East development in Waltham Monday.

The 312,000-square-foot building was designed to reduce the company’s carbon footprint as well as consolidate employees into one central New England office. Located at 40 Sylvan Road, construction on the three-story facility began in June 2007. National Grid expects the site to earn a LEED (Leadership in Energy and Environmental Design) gold rating from the U.S. Green Building Council.

The facility will house senior management for the company’s electricity and gas groups and other administrative teams. More than 1,800 employees will move into the building by late July.

National Grid’s New England corporate office was designed and built in conjunction with developer Davis Marcus Partners. The project team included: project manager Jones Lang LaSalle; interior architect Sasaki Associates Inc.; construction manager John Moriarty & Associates; mechanical engineers AHA Consulting Engineers Inc.; and architect ADD Inc.

National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island. It is the largest distributor of natural gas in the northeastern United States and also owns over 4,000 megawatts of contracted electricity generation that provides power to over one million customers.

WALTHAM – National Grid has opened its new, 312,000-square-foot New England headquarters in Waltham. The British utility company is consolidating its New England offices in one location, with more than 1,800 employees expected to work there. The workers will start moving into the three-story building on May 26, and the move will be completed by the end of July. The building features nearly 20,000 square feet of rooftop solar panels – enough to generate enough power for about 30 homes each year.

Energy distribution company National Grid is opening its new energy-efficient U.S. headquarters in Waltham, Mass.

The building takes advantage of optimized lighting, rooftop solar arrays, water conservation measures and high efficiency heating and cooling. It was built using a variety of recycled and sustainably sourced materials, according to a press release.

According to the release, the building features:

• Optimized lighting that requires 40 percent less electricity than a code-compliant building in Mass.; occupancy sensors; task oriented lighting; and daylight sensors at workstations saving more than 800,000 kwh per year - enough to power 133 homes for one year
• High efficiency heating and cooling systems with adaptable controls to sense outdoor and indoor temperatures
• Water conservation measures that are expected to reduce water use by approximately 2.4 million gallons per year through use of dual-flush toilets; automatic sensor faucets and a recycled storm water system
• Approximately 20,000 square feet of roof top solar power panels (736 photovoltaic cells) that generate enough electricity to power about 30 homes each year and offset 400,000 lbs. of CO2 annually
• Exterior shading devices on southern facing exposures
• A highly reflective white roof
• Superior air quality systems that feature carbon dioxide sensors installed in ventilation ducts; air refreshed at a rate of 1 1/3 air changes per hour from outside air; all adhesives, sealants, paints and coatings contain low quantities of volatile organic compounds (VOC’s)
• Sustainable materials: 28 percent of the materials and furnishing are recycled; 66 percent of the wood is sourced from sustainably-managed forests, including cafe floors made of rapidly renewable bamboo with environmentally preferable glue; carpet tiles consist of 42 percent pre-consumer recycled materials; workstation fabrics are made of 100 percent recycled content; recycled aluminum ceiling tiles are manufactured regionally
• More than 93 percent of construction waste was recycled
• Because the company is consolidating work forces from several area buildings into the new headquarters, National Grid’s carbon footprint per employee will fall.About 1,800 people will work in the building.

The building was constructed to meet Gold-level LEED status from the U.S. Green Building Council.

National Grid has implemented a pilot smart grid project in Massachussets.

National Grid earlier this year implemented a program to incentivize carbon reduction among its executive team.

LLP has signed a 10-year, 31,140-square-foot lease at Reservoir Woods in Waltham, Mass.

The law firm will relocate its local headquarters from 610 Lincoln St. in Waltham to 850 Winter St. in Waltham in December. The deal brings 850 Winter St. to 80 percent-leased and the entire, 1.2 million-square-foot Reservoir Woods campus to 97 percent leased.

Reservoir Woods is owned in a joint venture between Davis Marcus Partners, a venture between Marcus Partners and The Davis Cos., and Prudential Real Estate Investors.

The building at 850 Winter St. is located on the Reservoir Woods West campus. Together, Reservoir Woods East and West comprise 120-acres of corporate office space in Waltham between the Massachusetts Turnpike and Route 2.

Reservoir Woods East and West are also home to corporate tenants National Grid, PerkinElmer, Alkermes, Verizon Laboratories, Battery Ventures and Fresenius Medical Care.

Alkermes Inc. signed a lease on Wednesday for 100,000 square feet and will relocate its Cambridge headquarters to Waltham, Mass.

The deal, first reported by the Boston Business Journal in February, has been underway for months.

Alkermes (NASDAQ: ALKS) expects to move out of its 142,0000-square-foot Cambridge headquarters at 88 Sidney St. later this year. The company’s Cambridge lease does not expire until 2012 but Vertex Pharmaceuticals Inc. will sublease Alkermes’ Cambridge offices. Vertex’s real estate broker did not immediately respond to a call. "I wouldn't comment on whether we're going to sublease or not," said Zachary Barber, a Vertex spokesman.

Alkermes will downsize and relocate its headquarters to the 180,000 square-foot office and lab building at 850 Winter St. The move will reportedly save the company between $9 and $16 per square foot or about $750,000 a year.

The effort to restructure Alkermes began last March when the biotech company announced it would eliminate 150 jobs and close its Chelsea manufacturing plant. The move reduced the company’s workforce by about 18 percent to 235 people in Cambridge and another 400 employees at an Ohio manufacturing facility. The layoffs were a result of a decision by Eli Lilly and Co. to end a program to produce an inhaled insulin.

Alkermes is the latest in a string of Cambridge biotech companies — including Shire, Altus Pharmaceuticals and ImmunoGen Inc. — that have decided to leave East Cambridge for cheaper suburban locales.

The Waltham building was completed last May and is located in the Reservoir Woods campus. Alkermes will be the first tenant to move into the property which is jointly owned by Marcus Partners, The Davis Cos. and Prudential Real Estate Investors.

The building has been certified as LEED Gold by the U.S. Green Building Council. The Reservoir Woods campus is home to corporate tenants PerkinElmer Inc., Battery Ventures, Fresenius Medical Care and National Grid.

CB Richard Ellis represented the ownership in the transaction and Colliers Meredith & Grew represented Alkermes Inc.

Jonathan Davis and Paul Marcus had developed many green building projects in their careers, but they had never worked with a client with such hands-on knowledge of energy efficiency before building for National Grid US.

The joint venture between The Davis Cos. and Marcus Partners, with the help of architectural company ADD Inc., resulted in a 316,000-square-foot green building that has been pre-certified to receive the U.S. Green Building Council’s LEED gold certification.

National Grid’s new headquarters, situated in the Reservoir Woods east campus in Waltham, will include a host of green design features, 34 in all, from rooftop solar panels to systems that recapture stormwater and use it for sewage systems. Once completed, the $135 million building will be one of the largest green commercial buildings in the state (the platinum-certified Genzyme Center in Cambridge being larger).

"It was clear it was going to be a collaboration (with National Grid). They did have an extremely active role throughout the process, and they had very ambitious goals for the environmental sustainability of the building," said Davis.

The collaboration between Davis, Marcus and National Grid started when the utility was looking for space after its acquisition of Keyspan Energy in 2007. It knew it needed a facility that would meet not only the physical needs of the company, but serve as an example to customers that it was dedicated to environmental stewardship.

"We are going to be significantly growing our energy-efficiency program and for us to be able to go in to clients, there is an issue of credibility," said Tom King, president of National Grid’s U.S.-based operations. "It’s a leadership issue."

When it settled upon Reservoir Woods as its new home, National Grid established a lofty goal for its build to suit construction: to achieve an 80 percent reduction in its greenhouse gas emissions by 2050. To do this, the company invested in sustainably harvested building materials, high-efficiency heating and cooling systems and even sunshades on south-facing windows to keep the building warm in the winter and cool in the summer.

The hardest part of designing the building was not its size, but making the step from LEED silver to LEED gold without breaking the bank.

"You can go from certified to silver without much trouble or extra cost," said Michael Hass, the project’s architect. “To get up to gold is a much bigger hurdle. We went through a lot of ideas and looked at what was feasible."

Some ideas, like powering the building with fuel cell technology, were not cost effective, Hass said. But all-in-all, the group was able to integrate the vast majority of its 55 green features talked about at a price well below the $60 to $80 per square foot premium on LEED gold buildings, Marcus said.

Shown (from left) are: Marcy Reed, senior vice president of corporate affairs at National Grid; Paul Marcus, president of Davis Marcus Partners; and Jon Davis, CEO of Davis Marcus Partners.

Waltham, MA Davis Marcus Partners and National Grid held an official topping-off ceremony at 40 Sylvan Rd. on the East Campus at Reservoir Woods.

The 312,000 s/f building designed by ADD Inc, is scheduled for completion in May 2009 and will be occupied entirely by National Grid as its New England corporate office. The property is one of four buildings totaling 720,000 s/f that Davis Marcus Partners is currently developing in Waltham and Fairfield County, Conn. to be LEED Gold. The direct benefits of the LEED certification will translate into conservation of natural resources, energy efficiency, reduced operating costs, and superior working environment for occupants.

quot;We are thrilled to be topping off this building at Reservoir Woods. This property offers National Grid an environmentally sensitive new building with flexibility, energy efficiency and a full amenity package to help attract and retain valued employees,quot; said Paul Marcus, president, Davis Marcus Partners. quot;The building is being delivered to National Grid on an expedited 13-month schedule from building permit to occupancy. This is truly a testament to teamwork with National Grid, our partners, contractors and financial institutions.quot;

quot;As a LEED Gold-designed building, Reservoir Woods reflects our commitment to energy efficiency and to safeguarding our environment for the future,quot; said Tom King, president of National Grid's U.S. business. quot;As our permanent corporate home in New England, it demonstrates our commitment to being a significant regional employer and a good corporate citizen. It underscores our commitment to our employees, for whom we are providing a vibrant, new building where they will be proud to work for National Grid.quot;

Reservoir Woods East is a 54-acre office/research and development property purchased by Davis Marcus in partnership with Prudential Real Estate Investors (PREI) in December, 2006. Together, Reservoir Woods East and West comprise a 120-acre wooded campus located between the Mass. Tpke. and Rte. 2. The east and west campuses at Reservoir Woods are surrounded by the corporate headquarters for Raytheon Corporation, the Mass. Medical Society, and the North American Discovery Center for Astra Pharmaceuticals. Reservoir Woods' tenant roster includes Fresenius Medical Care, Perkin Elmer, Inc., Verizon Laboratories and Battery Ventures.

All buildings at Reservoir Woods offer a comprehensive high-end amenity package that includes a full-service café and outdoor patio, fitness and wellness programs, plus ample parking.

Executive vice president/partner Andy Majewski and vice president Kerry Olson of CB Richard Ellis are the exclusive brokers for Reservoir Woods. Managing director Phil DeSimone, executive vice president John Duffy, and senior vice president Keith Gurtler of Jones Lang LaSalle executed the lease on behalf of National Grid. Senior vice president Anthony Warren and project manager Danielle McLaughlin of Jones Lang LaSalle are overseeing the project and development side of the interior construction.

40 Danbury holds grand opening. 40 Danbury, a 162,000 sf Class A property designed to achieve LEED Gold Certification, is located in the Wilton Corporate Park. Louis Dreyfus, the lead tenant, will house its commodity trading operations with a lease for the entire top floor.

Getting Louis Dreyfus into the building on time was a fast track project. Louis Dreyfus needed to relocate its commodity trading operation from the current location to a new facility and to be in the space by July 1, 2008 and as of October 2007 had not signed a lease. The new space was to consist of a data center and typical trading space including a back -up generator, raised flooring and the entire communications infrastructure needed to support a trading environment. Davis Marcus Partners had already started the building on a speculative basis and was able to gain the confidence of Loius Dreyfus and complete the relocation to 40 Danbury Road within 8 months of lease signing. The success is due to understanding the delivery process, anticipating issues and working around them, listening to tenant needs and delivering creative solutions and having a well established team of professional capable and committed to an on time delivery.

850 Winter Street, a 180,000 square foot Class A LEED Gold core and shell property is complete and ready for tenant improvements. 850 Winter St, located in Reservoir Woods West, is part of the 120 acre Reservoir Woods campus developed in joint venture with Prudential Real Estate Investors.

The loan was made by a consortium comprised of Bank of America, Sovereign Bank and North Fork Bank, a division of Capital One Bank.