Sonnenblick arranges joint Boston venture - Finance: real estate - Twining Properties to develop a luxury residential tower in Cambridge

Real Estate Weekly, Feb 4, 2004

Sonnenblick-Goldman Company arranged a joint venture between Principal Real Estate Investors--on behalf of its Principal U.S. Property Account--and Twining Properties to develop a luxury residential tower in Cambridge, Ma.

The 24-story, 324-apartment tower will be the tallest building in the 1.3-million s/f Kendall Square Project adjacent to MIT and overlooking the Charles River.

Lyme Properties, master developer for Kendall Square, has recently completed the new Genzyme headquarters, research labs for Vertex and a 1,400 car underground parking garage. Twining Properties acquired development rights above the parking garage from Lyme and plans to commence construction later this year.

A requirement of the Kendall Square masterplan is that each building be designed by a world-class architect. The apartment tower, designed by CBT Architects, uses a dramatic 230- foot glass facade to form a beacon for Kendall Square that is highly visible from Boston.

The tower will include a retail component and a health club and will be connected to a luxury hotel and situated directly across the street from a world-class performing arts center.

Principal Global Investors is the dedicated real estate group of Principal Life Insurance Company, based in Des Moines, IA. Twining Properties, founded by Alex Twining, formerly with Morgan Stanley and AvalonBay Communities, has offices in Boston and New York.

"Principal's extensive experience investing in urban real estate development is a perfect match with Twining Properties' focus on complex urban mixed-use developments in Boston, New York City and Washington, D.C.," said Steve Kohn, president of Sonnenblick-Goldman.

"Quality rental apartments located in a high-barrier-to-entry market, such as Cambridge, are an excellent long-term investment for clients of our U.S. Property Account," said Rod Vogel, managing director of Principal Real Estate Investors.

Alex Twining, principal of Twining Properties, added, "We are fortunate to have acquired one of the finest development sites in the Boston marketplace."

The Principal U.S. Property Account is a fund of real estate equity investments for retirement plans. The fund primarily invests in fully developed, income-producing commercial properties, it currently includes investments in more than 100 office, industrial, multi-family and retail properties across the United States.