BOSTON-One of the city's most architecturally unique commercial properties has been underpinned with new financing, as owner Capital Properties Inc. has secured a $9.5-million permanent loan for 29 Commonwealth Ave. Lehman Brothers tendered the 10-year, interest-only note on behalf of Capital, a New York City-based real estate development and investment firm owned by Boston native Richard D. Cohen.

"The stabilized nature of the rent roll made this an ideal candidate for a securitized permanent loan," says Meredith & Grew VP Seth Rosen, who arranged the financing for Capital along with M&G EVP Kevin Phelan. Occupied by a diverse range of medical and professional tenants, 29 Commonwealth Ave. is 100% occupied, Rosen relays, and has traditionally performed well in that regard. The 11-story building offers just under 37,000 sf of rentable space.

Cohen has had an ownership interest in 29 Commonwealth Ave. through various entities and with different partners since acquiring the asset in 1986 for $4.3 million. Constructed in 1894, the structure underwent an extensive overhaul shortly after his stewardship began, and has been one of the investor's more enduring assets despite being occasionally put on the sales market. Since its inception in 1977, Capital has bought or acquired more than eight million sf of office space and 17,000 apartment units throughout the northeast. The current portfolio encompasses 3.5 million sf of commercial space and 5,000 residential units.

Besides space that can accommodate small- and mid-sized tenants, 29 Commonwealth Ave. also benefits from a location in the heart of Boston's Back Bay, offering access to the Green Line subway a few steps from the entrance. The building also fronts the Boston Common and Public Garden and is a five-minute walk to the Financial District.

Despite mounting difficulties in the debt sector, Meredith & Grew's Capital Markets Group has managed to close several loans this summer, including conduit-based transactions. The locally based operation most recently secured financing for another historic Boston property a few blocks from 29 Commonwealth Ave. In that deal, the Liberty Tree Building at 630 Washington St. was given a $10.1-million permanent loan from CIBC World Markets.