Shorenstein Acquires 717 KSF M-U Property in Boston

Shorenstein Properties has acquired Center Plaza, a 717,100-square-foot, transit-oriented mixed-use property in downtown Boston for a reported $307 million.

SHORENSTEINShorenstein Properties L.L.C., of San Francisco and New York, has acquired Center Plaza, a 717,100-square-foot, transit-oriented mixed-use property in downtown Boston, Shorenstein announced late last week. The seller was Blackstone Group’s Equity Office Properties Trust, and the transaction closed on Dec. 31.

The property comprises three interconnected nine-story buildings consisting of 620,000 square feet of office, 77,000 square feet of retail, 19,000 square feet of storage space (for tenants) and a 575-car garage.

Terms of the sale were not disclosed. However, a party who is familiar with the transaction, but spoke with Commercial Property Executive on condition of anonymity, confirmed that the price of $307 million referenced in some media reports is accurate.

Center Plaza is across Cambridge Street from Boston’s City Hall and adjacent to the MBTA’s Government Center station, which serves the transit system’s Red and Green lines.

This transaction appears to have been the first time that the building was sold on a stand-alone basis. Owned by Beacon Capital, its developer, for a long while after its completion in phases during the late 1960s and early 1970s, Center Plaza was later acquired by Equity Office in a portfolio deal.

The building is currently 95 percent leased to the FBI and other GSA tenants, along with Hachette Book Group, Riemer & Braunstein, MA Technology Collaborative, Beacon Residential Management, Nitsch Engineering, and Great Point Investors.

Retail tenants include FedEx Office, CVS Pharmacy, Burger King, Panera and The Kinsale, an Irish-style pub.

“This is an excellent property to own in a market with strong appeal to a wide range of tenants, including those looking for creative, open-floor environments in urban settings close to transit and amenities,” Shorenstein chairman/CEO Douglas Shorenstein said in a release.

Shorenstein completed the acquisition of Center Plaza on behalf of its 10th fund, Shorenstein Realty Investors Ten, L.P., which it formed in 2010 with $1.233 billion of committed capital.