Boston-based Intercontinental Real Estate Corp. has acquired a three-building office complex at Canal Park in Cambridge for $304 million.
Intercontinental on Monday bought the 426,000-square-foot complex overlooking the Charles River through the firm’s United States Real Estate Investment Fund, a $5.6 billion fund that invests in a range of commercial properties across the country. Beacon Capital was the seller.
Intercontinental chief executive Peter Palandjian said this fund is aimed at investing in turnaround properties as well as high-end office buildings that are already commanding strong leases. The Canal Park purchase fits into the latter category. The property — consisting of 391,000 square feet of offices and 35,000 square feet of retail space, spread across One, Two and Ten Canal Park — has an occupancy rate of 96.5 percent, according to figures provided by Intercontinental.
Major tenants include marketing firm HubSpot, with 60,000 square feet, online auto price analyzer CarGurus, with 48,000 square feet, and Philips Electronics, with 48,000 square feet. Palandjian said he likes the fact that complex is not heavily dependent on any one tenant.
He also sees the property fitting into his firm’s strategy of investing in what he calls “backdraft markets” — real estate markets that benefit from their proximity to super-hot neighborhoods. In this case, Canal Park benefits from its proximity to Kendall Square. Canal Park is also a short walk to the Lechmere Station on the Green Line.
Beacon Capital had acquired the buildings through separate transactions in 2014, for a combined total of nearly $170 million, according to a report from the Real Estate Alert newsletter at the time.