JV Secures $648M Loan to Purchase Two Office Buildings in Boston

by Nellie Day

BOSTON — A joint venture between Oxford Properties Group and institutional investors advised by J.P. Morgan Asset Management has received $648 million in acquisition financing. The funds will be used to purchase two interconnected, Class A office properties located at 500 Boylston and 222 Berkeley streets in Boston’s Back Bay neighborhood. The seller is Blackstone Group LP.

The portfolio includes a total of 1.3 million square feet of office and retail space. The properties are situated between Copley Square and the Boston Public Garden. They are also near the Massachusetts Turnpike, the Green Line subway and Back Bay Station.

Hines developed the 25-story 500 Boylston property in 1989. The 22-story 222 Berkeley was completed in 1991.

New York Life Real Estate Investors and co-lender TIAA-CREF Global Real Estate provided the seven-year loan. Eastdil Secured arranged the financing.

“We are very pleased to provide financing for this outstanding asset,” says Eric Becher, senior director at New York Life Real Estate Investors. “The properties’ street presence combined with their flexible floor plates, panoramic views, floor-to-ceiling windows and high level of finishes makes them two of the most desirable office buildings in Boston.”

Toronto-based Oxford Properties Group is a wholly owned subsidiary of the Ontario Municipal Employees Retirement System.

New York-based J.P. Morgan Asset Management – Global Real Assets has more than $87 billion in assets under management and more than 400 employees in the U.S., Europe and Asia, as of Sept. 30.

New York Life Real Estate Investors is a division of NYL Investors LLC, a wholly owned subsidiary of New York Life Insurance Company.

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