Historic Boston CBD Asset Trades for $75M
- May 24, 2017
By Mihaela Coste
KBS Strategic Opportunity REIT sold 50 Congress St., a 179,872-square-foot historic office building located in the heart of Boston’s Financial District. Jumbo Capital Management acquired the Class B asset for $75 million, or approximately $439,000 per square foot, as Yardi Matrix data shows.
Senior Managing Director Coleman Benedict and Director Ben Sayles of HFF’s Boston office brokered the transaction on behalf of the seller. The asset last traded in 2013, when KBS acquired it from Nordblom Co. for $51 million, the property being subject to a $32.9 million loan held by Bank of America.
The historic building is located within walking distance of Post Office Square and is surrounded by numerous shopping, dining, entertainment and lodging amenities, as well as historical landmarks and parks. Several subway stations are also nearby, providing tenants with easy access in and out of Boston. The property has street views on three sides, allowing ample natural light.
The 10-story office property also offers ground-floor retail and was built in phases between 1910 and 1915, undergoing cosmetic renovations in 2013. The building’s infrastructure is modernized and structurally retrofitted with updated amenities, including an on-site hair salon, café, bank and access to the U.S. Postal Services.
“We executed on our business plan to refurbish the property, retain tenants and roll them to market, while driving up occupancy and rents in this great property,” said Shep Wainwright, KBS senior vice president of acquisitions and asset management, in a prepared statement.
Images courtesy of KBS Capital Markets Group