ASB Acquires 4 Retail Properties in Boston for $91M
- Jan 08, 2014
ASB Real Estate Investments, acting on behalf of its $3.1 billion Allegiance Real Estate Fund, recently joined forces with real estate firm Blatteis & Schnur to plunk down $91.2 million in cash on the acquisition of a collection of four retail-office buildings totaling approximately 51,250 square feet in the ritzy Back Bay neighborhood of downtown Boston. The root of the hefty price tag is the retail space–the 33,450 square feet of high street retail space.
For ASB, it was worth it. “Boston has been and will continue to be one of our favorite target markets, possessing all the demand driving characteristics we look for: a dynamic urban environment; growing urban residential population; highly educated population, demonstrated job growth,” Robert Bellinger, president & CEO of ASB, told Commercial Property Executive.
The fully leased properties, sold by a partnership with a business address in North Reading, Mass., carry the addresses of 801 Boylston, 333-335 Newbury, 342 Newbury and 352 Newbury. The seller had owned the assets for just a few years, having bought them individually from different owners between 2010 and 2013. However, a little time can make a lot of difference. The building at 801 Boylston, for example, which traded for $27 million in 2012, commanded $53.9 million from ASB, according to Massachusetts land records.
ASB’s purchase of the premier Back Bay properties closed in late December, completing a busy year of acquisitions, during which the company bought $600 million of high-end real estate in leading shopping districts across the country. And of course, there’s more to come. “Our urban high-street retail strategy will continue into 2014 and beyond, with the goal of increasing our overall retail allocation within the Allegiance Fund to plus or minus 30 percent,” Bellinger said.
But it’s not all about retail; ASB will continue to pursue high-quality well-located office, apartment and mixed-use assets as well.