Shorenstein Purchases Boston’s 461 KSF Seaport Center Office Complex
In an example of a repositioned property in a transitioning neighborhood doing extremely well, Boston’s Seaport Center will see new ownership after being purchased by Shorenstein Properties for $115 million. The property, which spans 461,046 square feet, sits in the city’s Seaport District along the south waterfront of the Central Business District.
Douglas Shorenstein, chairman & CEO of Shorenstein, noted that the building’s “modern infrastructure, great views and flexible floor plates” will help “appeal to a wide variety of Boston office users.”
Shorenstein made the purchase on behalf of Shorenstein Realty Investors Ten, LP, a commingled fund formed in 2010 with $1.23 billion of committed capital. The seller was a partnership between The Beal Companies and Rockpoint Group.
A report by Marcus & Millichap Real Estate Investment Services Inc. called Boston’s south waterfront the driver of the city’s economic recovery, specifically noting the new, $355 million headquarters being developed for Vertex Pharmaceuticals along Fan Pier – which, upon delivery in 2013, will be the largest commercial lease in the city. The report went on to note that, for existing space, asking rents will rise citywide an average of 4 percent to $37.35 per square foot, driven by lack of new construction. “Approximately 210,000 square feet of office space will come online in 2012, increasing stock by a mere 0.2 percent,” the report noted.
Built in 1909 as a wool warehouse, the nine-story building has since been extensively renovated and today features fiber optic cable, highly efficient energy service, modern heating and air conditioning systems, a two-story atrium lobby, new windows, upgraded landscaping and on-site parking. The building is 88 percent occupied and major tenants include the Boston Herald, JP Morgan Chase, Monster Worldwide and Verizon.