Jamestown was the seller. The Atlanta-based is expected to reap about $140 million in profits from the sale. The company purchased the nearly fully leased tower in 2001 for $375.4 million.
Tishman Speyer will own and manage One Federal, which is 97% leased with tenants such as Bank of America, State Street Corp., Credit Suisse First Boston, Bear Stearns and Fidelity Investments. Law firm Bingham McCutchen LLP will be added to the roster in 2008. The building is situated on 1.3 acres and takes up the entire block between Federal and Devonshire streets. It is second acquisition here for the New York City real estate company. The firm also owns 125 High St., a two-tower office complex totaling 1.5 million sf.
"In keeping with our investment strategy, the acquisition of One Federal St. increases our presence in what we regard as the finest neighborhood in one of the world's premier cities," Tishman Speyer president & CEO Jerry Speyer said. Fried Frank Harris Shriver & Jacobson LLP and Goulston & Storrs represented Tishman Speyer. Robert E. Griffin Jr., Edward C. Maher Jr. and Marci Griffith Loeber of Cushman & Wakefield of Massachusetts Inc. represented the seller.
Maher says that the acquisition was a solid one for Tishman, which is only the building's third owner. "The hard fact is that assets of One Federal's trophy-quality rarely trade in Boston. Its defining characteristic is its proven resiliency." He notes that in both strong market conditions and weak, the building has historically displayed an innate ability to maintain a market-leading occupancy level which has averaged 98% over the past 10 years.
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