Boston Properties Completes Acquisition of 100 Federal St. in Boston
- Mar 15, 2012
By Scott Baltic, Contributing Editor
Boston Properties Inc. has completed the acquisition of 100 Federal Street in Boston from an affiliate of Bank of America, N.A., the REIT announced Tuesday. The aggregate investment of about $615 million reportedly will be funded with available cash. In connection with the transaction, Boston Properties entered into a long-term lease with an affiliate of Bank of America for about 787,000 square feet, or roughly 60 percent of the entire building.
100 Federal Street is a 37-story Class A office tower with about 1.3 million rentable square feet that occupies an entire city block bounded by Federal, Franklin, Congress and Matthews streets and overlooking Post Office Square Park, in Boston’s Financial District. The building is 93 percent leased.
That figure must be very easy to live with. The 2011 end-of-year vacancy rate for Class A office space in Boston’s Financial District was 16.2 percent, Ashley Lane, director of research for Cassidy Turley’s Boston office, told Commercial Property Executive. The preliminary first quarter 2012 figure, she added, looks to be essentially flat, at about 16.6 percent.
A separate survey, Lane said, showed an interesting anomaly in Class A office space in the Financial District: Vacancy is inversely proportional to height above the ground floor. In a sample of 16 buildings, the vacancy rate was 27.6 percent on floors 2 through 12, 19.9 percent on floors 13 through 22 and 14.5 percent on floors 23 and higher.