German Investor Takes a Bite Out of Boston with $167M Office Buy
- Sep 12, 2008
New York City’s Broadway Partners has sold 200 State Street to GLL Real Estate Partners GmbH, which acquired the premier property on behalf of European Institutional investors for $167 million. Broadway Partners’ had owned the 302,100-square-foot building since purchasing it through its Broadway Partners Real Estate Fund III last year as part of a 24-property office portfolio acquisition from Beacon Capital Partners L.L.C. for $5 billion. Developed in 1985, 200 State Street occupies a coveted spot adjacent to Faneuil Hall Marketplace in Boston’s Financial District. The 16-story tower has a history of strong occupancy levels, which jumped from 94 percent to 99 percent during Broadway Partners’ reign. The tenant roster includes one-time owner Beacon Capital, Eaton Vance Management, real estate services firm Grubb & Ellis, law firm Morgan, Brown & Joy and The Pantheon Group. Broadway Partners’ short hold of 200 State dovetails with the company’s current goal of repositioning its portfolio. For GLL, the transaction constitutes quite a coup, as the opportunity to snap up a trophy property like 200 State Street does not present itself every day. The asset has traded only twice since it was erected 23 years ago; Beacon staked a claim to the property in 2005, acquiring it from Irish investment firm Clarendon Properties. Additionally, availability of top-notch Class A properties on the market is a factor; in the second quarter, there were no major office transactions, according to a report by Cushman & Wakefield, which orchestrated the 200 State Street deal. Headquartered in New York City, Broadway Partners is a private national real estate investment and management firm with a diverse group of partners that encompasses both domestic and international investors from the private and institutional sectors. The company targets premier office properties in select markets across the country, and has purchased assets valued at a total of more than $15 billion since 2000. Munich, Germany-based GLL is a joint venture enterprise involving Lend Lease Corp. and Assicurazioni Generali. Created eight years ago, GLL’s funds under management top $4 billion and span Western Europe, Central and Eastern Europe, and North America and South America.