Boston Historic Building Trades in Sale-Leaseback Deal
- Apr 26, 2017
Once known as the Fidelity Trust Building, the historic property at 148 State St. in downtown Boston recently traded for a reported $41 million. Colliers International Executive Vice President of Sales Doug Jacoby, Executive Vice President Scott Dragos, Vice President Tony Hayes, Assistant Vice President Tim Mulhall and Associate Dan Hines acted on behalf of the seller, Public Consulting Group Inc. The buyer is a joint venture affiliated with Harbor Trading USA, the investment branch of German private investors Süsskind & Rokeach. The sale was backed by an approximately $26.7 million, 10-year, fixed-rate loan funded by local Blue Hills Bank. The financing was brokered by Collier’s Jeff Black, senior vice president. At the time of the transaction, the asset was secured by an $11 million loan funded by Citizens Bank, according to Yardi Matrix.
The property last traded in 2000 for $18.7 million, further reports show. It is also 100 percent occupied through December 2026 by Public Consulting Group Inc., serving as its headquarters. The other tenant, craft beer retailer The Ginger Man, occupies all 9,000 square feet of retail space through October 2025.
The 64,500-square-foot, 11-story Class B office building was erected in 1899 and was renovated in 2016. It features a new lobby, refurbished elevators and an upgraded HVAC system. Located in downtown Boston’s Financial District, the property offers easy access to Boston’s key points via the Aquarium, State Street and Government Center MBTA. 148 State St. is in the vicinity of Downtown Crossing, Beacon Hill and The North End residential communities and has several nearby parking garages.
“The purchase of 148 State St. represents our desire to invest in a long-term secure asset with superior underlying fundamentals, and located on one of the oldest and most famous streets in downtown Boston, surrounded by numerous historic landmarks. It’s no surprise to us that a dynamic and successful company like Public Consulting Group would choose this building to serve as its global headquarters from among all of its holdings throughout the country,” a Harbor Trading representative said in prepared remarks. Colliers recently arranged the sale of another Class B office building in downtown Boston. According to market studies, vacancy in the area has reached its lowest level in over a decade.
Images courtesy of Colliers International