Change could be coming to the Leather District in the form of development.
From Banker and Tradesman:
125 Lincoln St. includes office space on the top floor…The property, occupying an entire block in the transforming Leather District, could be suitable for a mixed-use redevelopment, said Matthew Pullen, an executive managing director for NGKF. Current zoning allows up to 223,880 square feet of development on the site.
The property is 100 percent leased and generates net operating income of $2 million. Leases have landlord termination options that would enable a redevelopment to begin as early as 2018, according to marketing materials.
177 Huntington moves to the sale block from Beacon Capital. The building anchors the First Church of Christ plaza and has become a destination for boutique Class A tenants.
From The Real Reporter:
Acquired under a 99-year ground lease almost four years ago, the 26-story, 206,625-sf building should yield “way over” $700 per sf by one account, possibly eclipsing $725 per sf by other sources.
Observers say they anticipate 177 Huntington Ave. will draw from a wide geography of heavy hitters…One factor likely mitigating the 177 Huntington Ave. mark in that area is the leasehold structure of ownership, a format certain funds are unable to pursue. Either way, it appears Beacon is in line for a hefty return on the asset.
The Boston office market is seeing strong rent growth in all classes and in all CBD submarkets. Landlords continue to try to differentiate their buildings by offering amenities and upgrades. Oxford is making a big splash in this space with lobby upgrade at 125 Summer Street in the Financial District.
According to the BBJ, Oxford is planning “a $10 million project to upgrade the building’s ground floor and lobby and reposition the entrance of the building to the confluence of Summer and High streets. The renovation was designed by ADD Inc., now with Stantec, while Turner Construction Co. is the general contractor…Oxford [recently] teased the renovation by erecting a two-story kelly green and navy blue banner at the site of what will become the entrance to 125 Summer St. with an all-caps proclamation: “Something big is coming.”
You can read the full article on the Boston Business Journal’s website.
Property Detail Page
125 Summer Street
The Chinatown section of Boston’s Mid Town is slated to get a new 225 room hotel from Westbrook partners.
According to an article posted on the BBJ, “the site at 73-79 Essex St. is a corner lot at the intersection of Essex and Oxford streets in Chinatown. The existing low-rise building on the property has previously housed industrial, light manufacturing and retail uses, the development team said…The site is located about a block and a half away from the MBTA Chinatown Orange Line stop and two blocks away from the Ritz-Carlton Boston Common at 10 Avery St. and the Hyatt Regency Boston at 1 Avenue de Lafayette.”
Additional details are available on the Bizjournals website, here.
More new office space and retail is on the drawing board from Berkeley Investments at 22 Boston Wharf Road.
According to the Boston Business Journal, “Berkeley Investments has plans to add two office floors atop the Stillings Street parking garage….[along with proposing] street-level retail to Boston Wharf Road, which is a relatively short connecting road between Congress Street and Seaport Boulevard, as well as additional windows along the side of the building that abuts the Q Street park.”
The BBJ’s overview of the Fort Point project also notes, “the 241,124-square-foot property has an assessed value of $26.435 million this fiscal year, according to the city assessor. Berkeley acquired it in 2004 as part of a $97.05 million acquisition of a swath of Fort Point properties from Boston Wharf Co., a Suffolk County deed shows.”
The full BBJ article is available on its website, here.
Beacon Capital continues to add to their portfolio by purchasing 160 Federal Street with is located at the corner of Federal St. and High St.
According to the BBJ, “the deal for the 351,000-square-foot, 24-story Landmark Building “was financed with a $96.2 million mortgage from Metropolitan Life Insurance Co., a separate Suffolk County record shows. The mortgage was executed April 10…Taurus bought 160 Federal St. in April 2007 for $101.4 million, Suffolk County records show.”
Additional details are available on the Bizjournals.com.
Bob Epstein can teach us a few things about remaking duds into destinations. Lafayette Center was that dud that wasn’t getting any airtime from prospective tenants, despite location, large floor plates and infrastructure.
“At Lafayette City Center, they also saw a property with ‘good bones and upside potential. It has high, 14-foot to 17-foot ceilings, expansive column spacing of 30 feet by 36 feet and big windows. As the downtown vacancy rate falls, rents are rising but Downtown Crossing is reasonably priced, Tom tells us. Its rents in the high $30s/SF to $40s/SF compare well to Back Bay rents in the $50s/SF and Cambridge hitting the $60s/SF. Downtown Crossing is still a value play. But back in 2002, Abbey Group saw that it—like Fenway in the ‘90s and Back Bay in the ‘70s—was undervalued,” according to a Bisnow editorial.
The full Bisnow article is available on its website.
100 Cambridge Street has a buyer. Intercontinental is a Boston-based real estate firm that focuses on acquisitions, asset management, portfolio management, finance, development, construction management and property management.
“That’s what we’re hearing,” says one market observer who maintains suitors were drawn to the opportunity listed by Colliers International “in droves” for a unique 590,000-sf facility that includes commercial tenants and state agencies occupying a tower that was revamped from an aging state-occupied structure into a mix of private and public space a decade ago. The initiative has lower levels housing multiple agencies and high-rise floors leased to top-name companies including Cannon Design, a nationally known healthcare architect in 27,500 sf on Floor 14 and law firm Prince Lobel occupying the 21st and 22nd floors. American Student Assistance fills 151,000 sf on six floors and Massachusetts General Hospital is on a trio of leases expiring from April 2015 to June 2016.
Additional building details are available on the property page: 100 Cambridge Street Boston
Year Up is on the move to 45 Milk Street, leasing all 61,000 square feet of the downtown Boston office building.
Context on the area around Milk Street in Boston, from Wikipedia:
“Milk Street was one of Boston’s earliest highways. The name “Milk Street” was given to the street in 1708 due to the milk market at the location. One of the first post offices in Boston was located on the street in 1711, when the first regular postal routes to Maine, Plymouth and New York were established.”
Historical Context on the building, from BostonHistory.org:
“In 1906, noted architect William Gibbons Preston modified his own 1893 design for this building by extending the Milk St. facade to its present location. The allegorical figures of commerce, fidelity, industry and security are by New York artist Max Bachman. The building’s original owner, the International Trust Company, was founded in 1879 and grew to become one of the largest trust companies in New England in the early 20th century.”
• Type: 4 Star Office
• RBA: 68,927 SF
• Stories: 9
• Typical Floor: 7,659 SF
• Class: A
• Construction: Masonry
• Building Ht: 111′
• Year Built: 1893
• Year Renov: 1981
• Tenancy: Multi
• Owner Occup: No
• Elevators: 2
• Slab to Slab: 12′
• Sprinklers: Yes
• Property Mix: Office (61,778 SF, 89.6%), Retail (7,051 SF, 10.2%)
The Building last sold on 6/10/13 for $21,000,000.