0 Former Hancock Tower Mortgage gets Paid Off

Posted on December 22, 2015 by Wil Catlin

Credit: Banker and Tradesman

Refinance is a hot topic for homeowners and office tower owners. Boston Properties is addressing all their debt that matures in the next two years.

From Banker&Tradesman:

Boston Properties has spent $667.4 million to retire the mortgage on 200 Clarendon in Boston, the 62-story Back Bay landmark previously known as the Hancock Tower…The loan had an outstanding principal balance of $640.5 million at a 5.68 percent fixed rate and was scheduled to mature in January 2017, according to a press release. Boston Properties paid $667.4 million to buy U.S. government securities that will generate cash flow to pay off the loan in October 2016, the company said. The mortgage and liens on the property have been extinguished, Boston Properties said…Boston Properties’ strategy is to pay off or refinance debt that matures in the next two years at above-market rates.

Related Office Space for Lease
Back Bay office space for lease

0 Multiple Projects from Boston Properties Progressing

Posted on May 7, 2015 by Wil Catlin

Credit: Boston Herald

Boston Properties is bullish on Boston with projects underway or proposed from Back Bay, Financial District and North Station.

· 888 Boylston has seen the crane arrive and has announced is major tenant Natixis Global Asset Management
· 100 Federal Street is looking to add more retail on the Congress Street side of the project

From the Boston Herald:

“In 2015, we estimate we could move approximately $1 billion in pre-development projects into our active development pipeline,” CEO Owen Thomas said. “Before launching any of these projects, we need to complete the entitlement and planning process and, in most cases, some level of pre-leasing.”

0 Hancock Tower Looks to Attract Boston Tech Companies

Posted on April 13, 2015 by Wil Catlin

JHT (John Hancock Tower) is no longer home to only large law firms and large financial services firms. Today JHT is chasing tech tenants that want Class A infrastructure and amenities with large floor plates. The low rise floors fit the bill and can be a great value play for both tenant and landlord. Boston Properties purchased the tower on 12/29/2010 for $930 million from Normandy Real Estate Partners.Some of the tenants include:

Bain Capital
CRA International
Oliver Wyman
Carat International
TA Associates
Berkshire Partners
Arclight Capital

From the Boston Globe:

“Frankly, the tech guys, where most of the demand in the market is, are not necessarily looking to go into a building that’s very corporate feeling,” Martel said. “These technology firms didn’t really care as much about the views. They liked the value, good clear [ceiling] heights, and efficiency.”

0 Boston Office Towers: Occupancy Drop; Rents still Climbing

Posted on November 10, 2013 by Wil Catlin

28 State Street – Office Building

Where is the value in office space within Boston? Low and mid-rise Class A.

Tenants in recent years have worked on space efficiency like State Street with their new facility in the Seaport, which will have less than 100 square feet per employee. Additionally, tenants have sought out a flight to quality by moving up in floors during the recent economic downturn and locking in rates for a longer term.

The Boston Business Journal cites a survey by Jones Lang LaSalle, “which examined 46 towers in the Back Bay, Financial District and the Seaport, found 22 buildings where occupancies dropped, while 21 saw increases and three were flat, year-over-year. Within the 31.8 million-square-foot office market, 5.7 million is available to lease – the equivalent of three John towers.”

More information from the survey is available on the BBJ’s website.