18 Tremont Street Sells for $77.5M

Out-of-state investor pays big money for historic office building in the heart of Boston’s Financial District.
18 Tremont Street - Boston

18 Tremont Street – Boston

The 12-story high-rise sitting at 18 Tremont St. in downtown Boston was acquired by a real estate investment company based in New York City.

DLJ Real Estate Capital Partners purchased the 12-story building from Equus Capital Partners for $77.5 million, or roughly $384 per square foot. That’s $28 million in profit for Equus, which acquired the office property back in 2007 on behalf of one of its value-add funds, BPG Investment Partnership VIII and VIIIA.

Both the seller and the buyer were represented in the transaction by Frank Petz and Matt Sherry of JLL’s Boston office. The building was 88 percent leased at the time of sale, which is indicative of the low vacancy rate in Boston’s Central Business District—that’s below 10 percent, according to recent JLL research data.

“18 Tremont’s location in Boston’s historic CBD, together with its unique floor plates, retail amenities and proximity to public transportation make it a desirable home to the growing CBD tenant base. 18 Tremont has attractive upside potential as existing rents roll to a rapidly increasing market level,” said Christopher Locatell, senior vice president at Equus, who was responsible for overseeing the disposition for the firm.

According to Real Estate Capital News, the transaction was financed with a $55 million loan from the Canadian Imperial Bank of Commerce.

Completed in 1915, the U-shaped building is located near the Massachusetts State House and Boston’s City Hall, and just two blocks from all four of the city’s major subway lines. Onsite amenities include a conference center, bike racks, locker rooms with showers, on-site retail options, and newly renovated and upgraded entrance lobby.

Image via Google Street View