CIM Group Snags Boston Office Property
- Sep 20, 2017
CIM Group has added to its Boston holdings with the acquisition of 1000 Washington St., an 11-story, 242,000-square-foot office building and the adjacent four-level, 309-stall parking garage at 321 Harrison Ave. in Boston’s South End, from Rubenstein Partners LP.
The purchase was made in partnership with Nordblom Co., which has owned a stake in the property and managed it since 2006. In late 2014, Nordblom and Rubenstein announced a partnership acquisition of the property for $75 million. The current sales price was not released nor was information on Nordblom’s stake.
Nordblom and Rubenstein had received approval a year ago from the Boston Redevelopment Authority to begin an $80 million expansion of the property by building a 218,500-square-foot office building atop the parking garage. The plans called for the lobby at 1000 Washington St. to be renovated to serve as a common lobby for both office buildings. Further details on whether CIM Group would be taking over that project were not available. CIM Group did note that Nordblom would continue to manage the property.
CIM Group, which acquired six parcels totaling 2.16 acres in Boston’s Fenway neighborhood in June, also owns the 200 Stuart St. Garage, Motor Mart Garage and 95 Berkeley St. The firm said in a prepared statement that 1000 Washington St. and 321 Harrison Ave. possess “attributes that fit its investment strategy.”
The property in the South End is located across the street from the Massachusetts Turnpike (Route I-90) and less than a mile from both the Back Bay Train Station and South Station, both served by Amtrak. It’s also served by the MBTA Silver Line with service to the Seaport and Boston Logan International Airport. The neighborhood was described as “transforming” with amenities including restaurants and shops.
Rubenstein noted in its own release that it was the right time to sell the asset because of its long-term development potential and strategic location.
“When we acquired 1000 Washington St., a key investment consideration was the dramatic transformation we foresaw taking place in the New York Streets neighborhood. The rapid pace of the area’s transformation, along with the additional development rights, allowed us to exit earlier than we originally anticipated,” Deke Schultze, senior vice president of Rubenstein Partners, said in a prepared statement.
“The recapitalization is also a great opportunity for our partner, Nordblom Co., to continue managing this asset and actively participating in this transformation of such an exciting part of Boston,” Schultze added.
Image courtesy of CIM Group