The 60-story tower, along with two adjacent office properties and a parking garage that make up the three-million-sf complex, are part of a 10-building portfolio in Boston, Los Angeles, Washington, DC and Denver that Beacon is selling. The portfolio is expected to bring in more than $5 billion for the firm, according to estimates.
"One of the things this signifies is that in the capital markets, people think Boston still has value, which is a good thing for our city," Gregory Vasil, chief executive officer with the Greater Boston Real Estate Board, tells GlobeSt.com. Vasil says it will be interesting to see what price the landmark tower will fetch on the open market given its prominence and its full roster of high profile tenants. "It's going to be fascinating" to watch, he adds.
"It's clear we could see a record here, certainly over $1 billion" says David Begelfer, head of the Boston chapter of the National Association of Industrial and Office Properties. "This just goes to show that on an investment basis, Boston is still one of the lead markets in the country."
The firm, which has its corporate headquarters in the city, acquired the complex in March 2003 from John Hancock Financial Services Inc. for $910 million, at the time considered a steep per sf price for office properties in the Back Bay. Today, the Hancock Building alone could bring in $960 million with bids in the $600-per-sf range, making for one of the highest sale prices in the market. An official with Cushman & Wakefield, which is assisting in the sale, says the Hancock is fully leased to tenants that include Investors Bank and Trust, Hancock Insurance and Hill Holliday.
Beacon Capital declined to comment on the pending sale but issued a three-sentence statement confirming that the tower complex and seven other properties were on the market. Those properties include 501 Boylston St., in Boston, 10 Universal City in California, 2445 M St. in Washington, DC and 1125 17th St. in Denver.
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