0 Synergy Sells Two Class B Office Buildings in Boston for $75m

Class B office building in Boston

Credit: BBJ

Trades continue in Boston’s Class B sector with the sale of 99 Chauncy Street and 101 Summer Street to TIAA from Synergy Investments for $75 million.

A recent article on the BBJ’s website notes, “Synergy sold the historic assets for a combined $75 million to a unit of TIAA, a New York-based teachers’ union pension fund with $889 billion in assets under management, according to Suffolk County deeds. Synergy’s ownership partner in the properties was Indepencia PE, a Chile-based investment advisor. The $75 million sale price is four times the combined $18.7 million Synergy invested in 2010 and 2011 to acquire the properties.”

Additional details about the class B office building sales are available on the Boston Business Journal, here.

0 Boston’s 70 Franklin Street Sells for $42M

financial district office building at 70 Franklin Street

Image Credit: cpexecutive

The Class B office market in Boston Financial District sees another trade: 70 Franklin Street.

From CPExecutive.com:

“70 Franklin’s timeless architecture combines with its flexible floor plates, open office layouts and modern building systems to create one of Boston’s premier Class B buildings. As a result, the asset boasts exceptional leasing momentum with tangible upside potential in Boston’s booming Downtown district,” said [Capital Markets Vice Chairman Edward] Maher.

Related Office Listings
Financial District Office Space in Boston

0 Franklin and Federal Street Office Buildings sell for for $177M

Franklin offices for lease

70 Franklin St.

Office trades continue with the sale of 175 Federal Street and 70 Franklin Street to Deka Immobilien Investment GmbH’s of Germany in excess of $177 million.

According to multiple sources, Deka Immobilien has been tabbed as winning bidder on both assets, committing in excess of $135 million for 175 Federal St. and more than $42 million to secure the Franklin Street property which dates to 1910. The German-based sponsor of several open-end real estate funds buying on a global basis and with assets in the Northeast “definitely” has 175 Federal St. under agreement, one source insists, a notion supported by others, and the same entity has been named winning bidder for 70 Franklin St., multiple sources further maintain.

More information on both properties is available on The Real Reporter.

Additional Property Information
175 Federal Street office space
70 Franklin Street offices for lease

0 Synergy Investments Sells Class B Portfolio

Credit: Boston Business Journal

Credit: Boston Business Journal

Value in the Class B market continues to be achieved with Synergy’s sale of a 4 building portfolio.

According to Bizjournals.com, the four-property portfolio spans a combined 237,434 square feet and was acquired for an average of $379 per square foot, up by $143 from the $236 per square foot paid by Synergy and GreenOak.”

The BBJ continued, noting “the deal is the latest in a wave of local Class B transactions. For example, Webster-based property insurer Mapfre Insurance bought One Winthrop Square in October for $55 million with plans to move some executive offices there. Boston-based commercial real estate firm Winhall Cos. bought Two Liberty Square in September for $28.25 million, up more than $10 million from the $18 million the property had traded for in January 2013. And New York-based DLJ Real Estate Capital Partners in October accquired 18 Tremont St. for $77.5 million.”
You can read the full article on the BBJ’s website, here.

0 ‘Jewel Box’ Building at 15 Broad Street goes up for Sale

15 Broad Street in Boston Financial District

Credit: Pinterest

Trades continue to take place in the Class B office sector with 15 Broad Street coming to market.

From The Real Reporter:

“the 73,500-sf “jewel box” building that is 100 percent occupied and has a cachet one observer terms “exceptional,” so much so that market estimates are putting the anticipated price range for an exchange around $475 per sf, which if accurate would be in the range of $35 million…As to pricing prospects, the concept of a deal around $475 per sf is bolstered by a similarly sized trade of another nearby asset in May when JLL delivered its client $479 per sf on the sale of One Milk St. to Midwood Investment and the $438 per sf Capital Properties paid to ELV Associates via Cushman & Wakefield a month before that for 66 Long Wharf, a 77,600-sf waterfront building blocks from Broad Street that carried a capitalization rate of 5.0 percent. “I could see that,” one downtown specialist says when asked if 15 Broad St. could even eclipse that $34.0 million outcome. The industry veteran looks more to the building itself for that conclusion, citing its proven appeal to small- and medium-size companies who have 15 Broad St. filled to the rafters with leases ranging from under 1,000 sf to a 14,300-sf pact involving the top two floors that runs to March 2024.”

0 Older Office Buildings in Boston Yielding Higher Rent Prices

office space at 10 Post office square in Boston

Credit: Boston Globe

It is true, Class B office rents are on par with the low rise space in class a towers.

From the Boston Globe:

What they lack in modern conveniences, the Class B buildings make up in character: Many have exposed bricks and beams or ornate stairways and other finishings that have caught the eye of young technology companies and other startups looking for more authentic digs.

Vacancy rates for those buildings have been consistently below those of the more modern, taller downtown towers, something unheard of in previous decades, according to JLL, a Chicago commercial real estate firm with offices in Boston.

Rents at Class B buildings in downtown Boston have increased about 32 percent over the past three years, compared with 18 percent for space in Class A towers, according to Cushman & Wakefield.

Related Office Listings
Boston Commercial Real Estate

0 Downtown Boston Office Market Expanding Steadily

lafayette City Center in Boston

Credit: B&T

Downtown Boston is the largest concentration North of New York City and is in the midst of strong rent growth across the Class A and B segments.  Today’s technology and creative services companies are looking for easy access to public transportation combined with an open floor plan.

From Banker & Tradesman:

For the third straight year in 2014, the Greater Boston office market recorded more than 2 million square feet of positive absorption, in a steady expansion that boosted occupancy rates at properties ranging from suburban office parks to converted warehouses and downtown high-rises.

“There’s more office product than ever and it’s getting filled in a much more dense way than ever before,” said Brendan Carroll, vice president of research for Avison Young. “If you’re wondering why the T seems more packed, or why you can’t get a cab to take you across the (Fort Point) Channel, that seems to be the reason.”

0 Uber Moving to North Station Area of Boston

uber bostonUber is on the move and headed for new digs in the North Station area of Boston.  The North Station office market still reigns as a value option compared with Back Bay and the Seaport.

The Boston Herald describes the scale of Uber’s new space at 239 Causeway St., noting “The 17,494-square-foot office is nearly three times the size of the company’s current office near South Station, and comes with an option to expand to another floor in the future.”

Rents in the Class B market can range from the low to mid $30’s PSF.