CBRE Global Investors Fund Acquires 28-Story Boston Office Tower
- Sep 26, 2014
A fund sponsored by CBRE Global Investors has acquired 100 High St., a 546,336-square-foot, 28-story office building with a 273-space, three-level, on-site subterranean parking garage situated in the heart of Boston’s Financial District.
“It’s a very high-quality asset located in a market that we have determined is one we want to acquire in,” Vance Maddocks, CBRE Global Investors’ president of strategic partners U.S., told Commercial Property Executive. “The appeal of the property is an asset where we can add value.”
The granite and glass tower is currently 64 percent leased to tenants that include a mixture of technology companies, law firms and insurance companies with long-term leases. The trophy-quality building offers three floor-plate sizes, ranging from 11,000 to 30,000 square feet.
Located between Congress and Federal streets, the building is less than a five-minute walk from South Station, the Financial District’s primary stop on the Red Line, which connects Cambridge and the Central Business District.
“Boston is an area where we think we’ll see a lot of job growth over the next five years, and now we’re kind of at the front end of that,” Maddocks said. “In the Financial District, there’s not many buildings that have been built in 10 years, and we don’t think there will be any new construction of Class A office towers until 2018-19, so there will be a 10- to 15-year run of no supply in a market we think will see a lot of jobs added.”
According to Maddocks, CBRE Global Investors will invest heavily in the property by upgrading building systems and adding its signature 5-Star Worldwide service and amenity program.
“There’s quite a bit of what we believe is upside through leasing the vacant space and repositioning the asset with some system upgrades and other things that we typically do in real estate,” Maddocks said. “Our 5-Star Worldwide service is an operating system that we use in office buildings that centers around an environment of service and amenities for the tenant, and it’s about providing greater efficiency for our end users and tenants.”
Additionally, conference facilities and outdoor meeting areas will be added.
“This is being acquired for a value-added fund, a fund that looks for a little bit higher returns and takes a little higher risk to achieve those returns,” Maddocks said. “In terms of our overall company philosophy, we generally look for assets in markets that are undervalued, and we think that’s the case here.”