Tishman Speyer Expands in Boston
- Dec 09, 2015
Tishman Speyer is bullish on Boston, acquiring One Channel Center in the Seaport District and once again expanding its portfolio of office and mixed-use properties there.
The New York-based firm did not release the price it paid for the 11-story, 501,650-square-foot office building and an adjacent 965-space parking garage. However, the Boston Business Journal reported it was a total of $316.5 million – $264.5 million for the office building and $52 million for the parking garage, citing Suffolk County deed records.
One Channel Center was developed by AREA Property Partners and Commonwealth Ventures for approximately $225 million as a build-to-suit site for State Street, one of Boston’s largest financial institutions. Completed in 2014, the property is located on a full city block in the Fort Point micro-market in the Seaport District. The property has views of downtown Boston, the Seaport and South Boston. It also has access to major highways and the Broadway station for the “T,” the city’s public transit system, is a short walk.
“The Boston office market is currently very strong and we believe it will be strong over the long term,” Tishman Speyer President & CEO Rob Speyer said. “This is a signature office building that is well situated in what is a vibrant mixed-use neighborhood with a great future. As such, it fits perfectly with our strategic portfolio growth plan in Boston, one of the nation’s greatest cities, as we look for opportunities to continue developing and acquiring world-class properties to serve the needs of leading companies there.”
Tishman Speyer, a global developer and owner of assets like Rockefeller Center, the MetLife Building and Chrysler Center in New York, is planning its first ground-up development in Boston in the same area as One Channel Center. Earlier this year, the firm said it would build a mixed-use development with offices and luxury condos at Pier 4 in the Seaport District. In April, Tishman Speyer announced China Life Insurance Co. and Ping An Insurance Co. were investing in the $500 million project as their first equity investments in the United States. The plans call for a 13-story building with about 353,000 square feet of office space and 20,000 square feet of retail. A 100-unit, nine-story condo will have 171,000 square feet of residential space and 17,000 square feet of retail. Both buildings should be completed by 2018.
The firm also owns two Boston office buildings – One Federal St. and 125 High St.
As of June 30, Tishman Speyer had acquired, developed and/or managed a global portfolio of approximately 139.1 million square feet with a total value of about $74.7 billion. Other U.S. cities the firm is active in are New York, Atlanta, San Francisco, Los Angeles and Washington, D.C.