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Office Tower Solidifies Financial Base

BOSTON-ING shepherds the $185-million syndication into reality. Despite the hand-wringing from industry observers when the building first went up, 33 Arch has hit 84% occupancy.

By Joe Clements | Updated on May 23, 2007

BOSTON-One of the only office towers built in the city this decade has taken a big financial step forward, with ING Real Estate syndicating half of the $185-million first mortgage term loan on 33 Arch St. The 33-story, 603,000-sf building was developed by Congress Group Ventures of Boston and is backed by a partnership of Apollo Advisors and Canadian-based SITQ.

Loan proceeds were used to refinance the original construction loan and fund the remaining lease-up costs for the property. ING, as administrative agent and sole arranger, underwrote and closed the $185 million in late 2004, according to David Mazujian, managing director and president of ING’s US finance platform. “We made a conscious effort to allow the property to further lease up prior to syndication,” says Mazujian.

The level of commitments from tenants since then “is a testament to the strengthening Boston market,” adds Mazujian. Several other European institutions are involved in the syndicate. Apollo Real Estate Advisors is a leading international real estate investor and fund manager that has collectively invested in more than 400 transactions with an aggregate value exceeding $30 billion. A subsidiary of the Caisse de depot et placement du Quebec, SITQ is a real estate development, investment and management firm that owns 114 assets valued at $9.4 billion.

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