Tech firm athenahealth Inc. acquires 760,000-sf 'Arsenal on the Charles' in Watertown, Massachusetts from Harvard University for

 Tech firm athenahealth Inc. acquires 760,000-sf 'Arsenal on the Charles' in
     Watertown, Massachusetts from Harvard University for $168.5 million

PR Newswire

BOSTON, May 13, 2013

Avison Young represents buyer in landmark acquisition of 11-building campus;
purchase marks largest user-buyer transaction in Boston to-date in 2013

BOSTON,  May  13,   2013  /PRNewswire/  -   Avison  Young,  Canada's   largest 
independently-owned commercial real estate  services company, announced  today 
that Watertown, MA-based athenahealth, Inc.  has finalized the acquisition  of 
the   "Arsenal  on the  Charles"  - a  760,000-square-foot  (sf),  11-building 
complex situated on  29 acres  on the  Charles River  in Watertown,  MA -  for 
$168.5 million. The seller was Boston-based Harvard University.

athenahealth originally moved into the property in 2005 as a tenant, occupying
133,000 sf. The company has experienced  tremendous growth over the past  five 
years to become one of the area's largest technology tenants, and sought up to
500,000 sf for its corporate headquarters.

The purchase, which marks the largest user-buyer transaction in Boston to-date
in 2013, is the  culmination of an extensive  two-year search and analysis  of 
existing properties and development sites throughout the Boston market by  the 
Avison Young/athenahealth team.  Given the  lack of existing  product and  the 
high expense of new  construction, coupled with  the fact that  athenahealth's 
employees enjoy  their current  location  and amenities,  the Arsenal  on  the 
Charles made sense as a long-term solution on a much lower overall-cost basis.

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

"Having worked  with  athenahealth for  many  years, we  were  delighted  that 
Harvard was amenable to selling the asset to athenahealth as both parties will
truly benefit from this  landmark transaction," comments  Cook. "What is  most 
impressive  about  athenahealth's   growth,  from   a  small   startup  to   a 
publicly-traded corporate powerhouse  with nine locations  worldwide, is  that 
athenahealth has been able to maintain its vibrant company culture throughout.
Furthermore,  athenahealth   puts   a   high  priority   on   its   employees, 
sustainability and doing the right thing."

The Arsenal  on  the  Charles is  currently  more  than 90  per  cent  leased. 
athenahealth  currentlyoccupies250,000   sf.Other   major   tenantsinclude 
Harvard Business School Publishing (100,000  sf), Bright Horizons (90,000  sf) 
and Boston Sports Clubs (50,000 sf).

"We are excited to deepen our  roots in Massachusetts; Watertown is our  home. 
The Arsenal on the Charles offers athenahealth everything we could ask for  in 
a headquarters;  its open  and expansive  architecture, outdoor  campus  feel, 
strong community, and proximity to Boston fit with our culture, strengthen our
standing as a top employer, and  provide an inspirational backdrop as we  work 
to be medical caregivers' most trusted service," says Jonathan Bush, Chair and
CEO of athenahealth. "We are  building a national health information  backbone 
that will have a revolutionary impact on the cost and quality of health  care. 
I cannot imagine a better  place than the very  same buildings from which  the 
first Industrial  Revolution rose  to  take on  such inspiring  and  important 

"While there  were a  number of  viable options  we considered,  none of  them 
provided the unique backdrop or a  stronger link to our culture, growth  needs 
and vision  for  health  care as  did  the  Arsenal and  the  local  Watertown 
community, which for years we've  considered our team to  be a part of,"  adds 
Carolyn Reckman, Vice-President of athenaEnvironment, which is responsible for
day-to-day operations,  quality  of  life  and  community  for  athenahealth's 

Cook adds  the  sale was  a  true  partnership between  athenahealth  and  the 
world-renowned university: "Harvard  was compassionate towards  athenahealth's 
growing space needs and worked with the firm over the years to accommodate its
continuous growth."

Harvard acquired  the propertyin  2001with the  intention of  utilizing  the 
campus for  future  institutional  needs.  Following  the  economic  downturn, 
Harvard recalibrated its  vision for  properties beyond its  core campus.  The 
University utilized property  closer to the  Harvard campus for  institutional 
needs and successfully leased the Arsenal on the Charles, bringing a range  of 
businesses to the area.  athenahealthsaw an opportunity  to acquire an  asset 
that both  met  thecompany'sfuture  growth  needs  andreflectedthe  firm's 

Avison Young's services included a detailed cost-benefit analysis provided  to 
athenahealth. Martinez says Avison  Young's capital markets group  waspleased 
to providesupport to  athenahealthas it evaluated  thebenefits of  owninga 
clearly outstandingasset.

"Without  question,  long-term   ownership  is  a   financial  homerun   when 
comparedwith a long-termlease- particularlygiven athenahealth's continuous
expansion requirements," she says.

About Avison Young
Founded  in  1978,  Avison  Young  is  Canada's  largest   independently-owned 
commercial real estate  services company. Headquartered  in Toronto,  Ontario, 
Avison Young is also the largest Canadian-owned, principal-managed  commercial 
real estate brokerage firm in North  America. Comprising more than 1,200  real 
estate  professionals  in  45  offices   across  Canada  and  the  U.S.,   the 
full-service   commercial   real   estate   company   provides    value-added, 
client-centric investment sales, leasing, advisory, management, financing  and 
mortgage placement  services  to  owners  and  occupiers  of  office,  retail, 
industrial and multi-residential properties.

About athenahealth, Inc.
athenahealth is a leading provider of cloud-based services for EHR, practice
management, and care coordination. athenahealth's mission is to be caregivers'
most trusted service, helping them do well doing the right thing.

For further information/comment/photos:

• Sherry Quan, National Director  of Communications & Media Relations,  Avison 
Young: (604) 647-5098; cell: (604) 726-0959

• Janine Wuschke, Vice-President, Marketing, New England, Avison Young: (617)
758-8264; cell (978) 210-6204

• Steve Cook, Principal, Avison Young: (617) 250-7607

• Suzanne Martinez, Principal, Avison Young: (312) 957-7617

• Rick Kimball, Principal and Managing Director, New England, Avison Young:
(617) 758-8271

• Holly Spring, Media Relations, athenahealth: (617) 402-1631

Avison Young was a winner of Canada's Best Managed Companies program in 2011
and requalified in 2012 to maintain its status as a Best Managed company.

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•Editors/Reporters: please click on link to view and download photo of the
Arsenal on the Charles, Watertown, Massachusetts

SOURCE Avison Young Commercial Real Estate (BC)


Media Relations:
Sherry Quan
(604) 647-5098 or (604) 726-0959
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