The Episcopal Divinity School (EDS) plans to sell select portions of its campus in Cambridge to Lesley University, thereby eliminating underused property, reducing operating costs and significantly growing its endowment.
McCall & Almy, a Boston-based commercial real estate brokerage and advisory firm focused on tenant representation and strategic real estate advice, structured and executed the agreement.
Since its founding in 1867, EDS has been a major center of study and spiritual formation for lay and ordained leaders. Lesley University has campuses in Cambridge and Boston, which are a part of a 12,000-student, multi-site university for women and men.
When first consulted by EDS, McCall & Almy was presented with a 200,000-square-foot portfolio of residential, administrative and educational buildings on eight acres of land within a few blocks of Harvard Square. With an ongoing budget deficit that posed challenges to the institution’s endowment, McCall & Almy presented the board of EDS with several options for consolidating its assets and reducing its liabilities, with solutions ranging from relocation to identifying potential users for select campus buildings.
"McCall and Almy had prior experience with educational institutions and understood our focus on our mission. Working closely with the board, they helped us see our property as assets to be leveraged to maximize the support for our mission," said Brett Donham, chair of the board of trustees.
McCall & Almy helped negotiate a multi-stage transaction in which the EDS campus was converted into a condominium and Lesley University purchased individual campus buildings to support its educational initiatives. Lesley now owns seven of the buildings on campus, including residence halls and the dining facility. Lesley and EDS will share ownership of Sherrill Hall, where they will collaborate on library services tailored to meet the needs of students of both schools.
"We’re pleased this transaction created a truly synergistic relationship between two leading academic institutions that will benefit their students for years to come," said Sandy Tierney, executive vice president of McCall & Almy.
EDS was represented by Tierney and Bill McCall of McCall & Almy in the transaction with Lesley. McCall & Almy subsequently represented EDS in the sale of two buildings on Phillips Place to the Lincoln Institute of Land Policy.
