TIAA Purchases Historic Boston Seaport Office Portfolio for $224M
BOSTON — An affiliate of TIAA has purchased a seven-property office portfolio totaling 408,342 square feet in Boston for $224 million, or approximately $550 per square foot.
An account advised by New York-based Clarion Partners was the seller of the portfolio, which is located in the Fort Point Channel neighborhood of Boston’s seaport district. Clarion acquired the offices in 2012 for a combined $129.3 million from an affiliate of New York-based Angelo, Gordon & Co.
Properties within the 97 percent leased portfolio are located at 263 Summer St.; 332 and 374 Congress St.; and 33-41, 34, 38 and 44 Farnsworth St. The six offices span between five and nine stories and were built between 1890 and 1920, according to the Boston Business Journal. The portfolio also includes a 16-space parking lot.
Originally built in the early 1900s, the properties feature high-quality office space with exposed ceilings and natural lighting.
Coleman Benedict and director Ben Sayles led the HFF investment sales team, which represented the seller and procured the buyer.
According to the Journal, the Farnsworth Street offices will host General Electric Co. (GE) temporarily while the company builds a permanent headquarters on nearby Necco Ct.
“TIAA is one of the largest stakeholders in the city of Boston with both large debt and equity holdings,” says Sam Flood, head of northeast real estate acquisitions with TIAA Global Asset Management. “This portfolio allows us to diversify our current holdings and provides for creative value enhancement moving forward.”
— Haisten Willis