Historic Boston Office Asset Fetches $50M

Credit Suisse purchased Bedford Block, an 86,000-square-foot property built in 1875, backed by $31 million in acquisition financing.
Bedford Block

Plymouth Rock has sold Bedford Block, an 86,241-square-foot historic office building in central Boston, to Credit Suisse for $50.3 million, according to Yardi Matrix. Boston Private Bank & Trust Co. provided the buyer with a $31 million acquisition loan. The seller had owned the asset for nearly 25 years, following a $5.9 million acquisition from JER Partners in September 1995.

The five-story property is located at 99 Bedford St., less than half a mile from Boston’s historic stock exchange building, which changed hands for $69 million in October. Bedford Block is a short walk from the South Station Train Terminal, one of the busiest transportation hubs in New England.

Built in 1875 in a Venetian Gothic style, the property was initially used by a shoe retailer following the Great Boston Fire three years before. The asset was significantly updated between 1983 and 1984 to include 83,741 square feet of office and 2,500 square feet of retail space. The building’s tenants include AT&T, The Nature Conservancy and Lavallee Brensinger Architects.

Office investment in Boston is strong this year: Yardi Matrix shows $3.8 billion in transactions closing through the start of November. Sales in the metro’s central business district and downtown submarkets nudged just upwards of $1.9 billion with Credit Suisse’s acquisition.