New Boston Fund Sells $145M Multifamily Asset

With the help of HFF, the company sold the 21-story Tower at One Greenway to PGIM Real Estate for more than $660,000 per unit.

The Tower at One Greenway, Boston
The Tower at One Greenway, Boston

Just two years after completing development of The Tower at One Greenway, New Boston Fund has sold the 217-unit luxury rental community in downtown Boston for $144.5 million, or more than $660,000 per unit. The real estate investment manager relied on the assistance of HFF to sell the trophy property, which was purchased by PGIM Real Estate, according to Suffolk County records.

New Boston Fund completed development of One Greenway, rising 21 floors on the former Parcel 24 site at 99 Kneeland St., in 2015, delivering 217 residences to the ever-thirsty Boston apartment market. The building offers the typical amenities luxury-apartment renters have come to expect and then some, including a yoga studio, dog wash and electric car charging stations.

“Consistent with its first-class nature and outstanding operating history, One Greenway garnered wide attention from both foreign and domestic capital sources,” Chris Phaneuf, managing director with HFF, told Commercial Property Executive. “Opportunities to purchase trophy apartment properties of this magnitude are quite rare in Boston and the strong investor response to the offering reflected this scarcity. In the end, we were very pleased with the outcome of a very competitive marketing process.”

There’s history there

The sale doesn’t mark the first time HFF has worked with New Boston Fund on business pertaining to One Greenway. In December 2013, the commercial real estate and capital markets services provider arranged $114.7 million in financing for the project. The funds came in the form of a $104 million construction loan through a consortium consisting of PNC Bank, People’s United Bank and Boston Private Bank & Trust, as well as a $10.7 million equity investment from National Real Estate Advisors.

Image courtesy of HFF