BOSTON — KBS Strategic Opportunity REIT, a public non-traded real estate investment trust based in Newport Beach, Calif., has acquired 50 Congress Street, a 179,872-square-foot office building in Boston, for $51 million. The Nordblom Co. sold the 10-story building, which includes ground-floor retail.
Burlington, Mass.-based Nordblom Co. has been affiliated with 50 Congress Street through ownership and management of the property for more than 60 years, according to Peter Nordblom, president of Nordblom Co. “It is a gem of a building,” he says. “We are particularly delighted with the community of companies within the building and pleased to be selling the property to such a quality operator.” HFF marketed the property on behalf of Nordblom Co. and arranged the $51 million sale to KBS.
Built in phases between 1910 and 1915, the landmark office building is located in Boston’s financial district. The property’s infrastructure has been modernized and structurally retrofitted with updated amenities. Tenants include high-end gym Fisique and law fims Rice, Heard & Bigelow and Nichols & Pratt.
“We are excited to have acquired this beautifully maintained building,” says Shep Wainwright, senior vice president of acquisitions for KBS Capital Advisors LLC, the REIT’s external advisor. “The high ceiling and exceptional natural lighting make this a unique and desirable building in an excellent location.”
KBS has hired Richards Barry Joyce & Partners to handle leasing of the property, which was 88 percent leased at the time of sale. Available office suites range from 1,000 to 6,000 square feet, with one 6,000-square-foot space on the top floor that features views of downtown.
The Boston financial district is home to the bulk of Boston’s Class A office space. The 42.4 million square feet of total rentable building area amounts to nearly half of the office space in Boston’s central business district, according to CoStar Group.
With the acquisition of 50 Congress Street, KBS-affiliated companies now own four properties in the Boston area including Rivertech, a 285,772-square-foot industrial complex in Billerica, Mass.; 825 University Avenue, a 166,574-square-foot office building in Norwood, Mass.; and the 137,421-square-foot 625 Mount Auburn Street, an office complex in Cambridge, Mass.
KBS Strategic Opportunity REIT invests in and manages a diverse portfolio of real estate-related loans, opportunistic real estate, real estate-related debt securities and investments. Since its inception in 1992, KBS-affiliated companies have completed transactional activity of approximately $26 billion via 14 separate accounts, six commingled funds, five sovereign wealth funds and five non-traded REITs. KBS Realty Advisors and KBS Capital Advisors have invested/managed more than $16.9 billion in 1,552 assets nationwide and have sold 972 assets.
Nordblom Co. is a real estate enterprise with an 85-year history of investing, managing and developing properties throughout the New England region and select markets across the country. The company currently owns office, commercial and multifamily properties in the New England and Carolina markets. Nordblom has $1.2 billion in assets under management.