June 16, 2011 – Atlantic Management is putting the finishing touches on a $9 million deal to acquire the former Hewlett-Packard campus in Marlborough and is already actively marketing the property to a slew of potential users, according to multiple sources.
A real estate source close to the matter said Atlantic, based in Framingham, is likely to close on the property in “a matter of weeks, not months” and is fielding calls from tenants and developers interested in occupying or repurposing the 109-acre site. That person, who declined to be identified, said three specific deals are being discussed, and that the property’s size, layout and flexibility could result in one or more of the deals coming to fruition.
At 750,000 square feet, the Atlantic deal would equate to around $12 per square foot — well below the property’s one-time rents of between $15 and $20 a square foot.
Among the potential uses already on the table is a 170,000-square-foot lease with an unidentified health care technology company; a 300,000-square-foot lease with an unidentified corporate user; and a deal with a national development firm to convert a portion of the site into 250-to-300 residential units.
Atlantic Management officials declined to comment.
Nonetheless, another source tells The Round Up that Atlantic is in fact negotiating with Boston-based Iron Mountain Inc. relative to the 300,000-square-foot lease deal in question. A call to Iron Mountain was not immediately returned Wednesday.
The former HP site at 200 Forest St. in Marlborough has been mostly vacant for several years.
According to public records, the Marlborough campus is owned by Hewlett-Packard and includes two primary office buildings as well as several smaller facilities that support the site’s infrastructure and serve a number of potential corporate and extracurricular uses. The land was originally developed by one-time technology titan Digital Equipment Corp., which was eventually rolled into HP.
The deal would be a particular boon to the city of Marlborough, which was notified earlier this year that longtime corporate resident Fidelity Investments was exiting its campus. The move was forecast to potentially double the city’s office-vacancy to over 40 percent.