Pembroke Acquires Proto Tower in Strategic Boston Homecoming

CAMBRIDGE, MA – December 19, 2025 – International real estate business Pembroke has made a significant move in its founding city, acquiring the Proto luxury apartment tower in the heart of Cambridge's Kendall Square. The purchase of the 280-unit property from developer BXP marks the firm’s first residential acquisition in the Boston area and its fifth globally in just two years, signaling an aggressive diversification into the multifamily sector.

Proto, a 22-story LEED Gold certified building that opened in 2018, is a coveted asset in one of the nation's most dynamic innovation hubs. With a 95% occupancy rate, the property demonstrates the persistent high demand for premium living spaces in a neighborhood dominated by global technology, life science, and academic institutions. The acquisition underscores a broader trend of institutional investors prioritizing stable, high-yield residential properties in core urban markets.

“This decade is one when we’ve seen the global real estate market profoundly change—people want more from the places where they live and work, and they want ease in transitioning between these places,” said Edward Johnson, President of Pembroke. “Proto is our fifth residential acquisition in two years, and it’s particularly meaningful to us, because it’s not only our first acquisition in the Boston-area since launching our diversification strategy, but Boston also is the city where Pembroke began twenty-eight years ago.”

A Global Pivot to Residential Real Estate

The Proto acquisition is a cornerstone of Pembroke's deliberate global strategy to complement its extensive office and mixed-use portfolio with high-quality residential assets. This pivot began in December 2023 with the purchase of The Lark in London, followed by the Fitzroy in Arlington, VA, in early 2025. The firm has also secured development sites in Munich and Melbourne, signaling its intent to become a major developer and operator in the international multifamily market.

This strategic shift is fueled by a recognition of the multifamily sector's resilience and strong fundamentals. Unlike the office sector, which faces headwinds from remote work trends, urban residential properties in key economic hubs have maintained high occupancy and demonstrated consistent rent growth. Institutional capital is increasingly flowing towards these assets, drawn by reliable cash flow and long-term appreciation potential driven by persistent housing shortages and demographic trends.

Pembroke's approach leverages its existing local expertise in major global cities. “We continue to focus on identifying the attractive opportunities in our target markets, be it high-quality existing assets or ground-up developments, and are in a unique position to close deals expediently,” noted Jack Clark, Senior Vice President and Head of Investments at Pembroke.

The Unwavering Allure of Kendall Square

Kendall Square’s transformation from an industrial zone to the “epicenter of technology, life science and academia” makes it one of the most sought-after real estate markets in the world. The acquisition of Proto highlights the area's powerful draw for institutional investors seeking stable, long-term growth. The neighborhood's housing market is notoriously competitive, with a constant influx of high-income professionals from nearby MIT and companies like Google, Microsoft, and Moderna fueling intense demand.

This demand is reflected in Proto's premium rental rates, with studios starting near $3,600 and two-bedroom units commanding upwards of $9,000 per month. These prices are sustained by a rich amenity package designed for the modern urban dweller. Proto offers residents an onsite concierge, a landscaped terrace, a state-of-the-art fitness center, a pet spa, and expansive bike storage—features that have become standard expectations in the luxury rental market.

The property's sustainability credentials, including its LEED Gold certification, EV parking stations, and all-electric Energy Star appliances, also align with the preferences of a discerning tenant base and the environmental, social, and governance (ESG) mandates of institutional investors like Pembroke.

Shifting Portfolios and Long-Term Vision

The transaction also sheds light on the strategic calculus of major real estate investment trusts. The seller, BXP, is one of the largest owners and developers of premier workplaces in the U.S. While the company developed Proto as part of the Kendall Square Urban Redevelopment Plan, its recent financial disclosures point to a “strategic asset sales program.” The sale of a high-performing residential asset like Proto allows BXP to recycle capital and sharpen its focus on its core portfolio of premier office and mixed-use developments.

For Pembroke, the acquisition represents more than just a portfolio addition; it’s a deepening of its commitment to Boston. The firm is simultaneously undertaking the ambitious transformation of the former Seaport World Trade Center into Commonwealth Pier. Set to open in 2026, the revitalized waterfront destination will feature a mix of public spaces, restaurants, retail, and new homes for Fidelity Investments and the Museum of American Finance.

“Like many Bostonians, I have known this iconic, waterfront property through very different functional evolutions,” Johnson said of Commonwealth Pier. “We’ve preserved notable historic features while modernizing the building...There’s a flow that runs through this property that will inspire exploration.”

This dual focus on acquiring modern residential assets like Proto while redeveloping historic commercial landmarks like Commonwealth Pier illustrates Pembroke’s multifaceted, long-term vision for shaping the urban fabric of its home city and other leading metropolitan areas around the world.