Search
 

One Lincoln St. Sale Seen Topping $900M

BOSTON-Fully leased to State Street Corp., the 36-story office tower sold less than a year ago for $889 million.

By Joe Clements | Updated on September 20, 2007

BOSTON-One of Boston’s newest office towers is going on the sales block–again. Since its completion in 2003, the 36-story, one-million-sf structure has changed hands multiple times, and in each instance at record highs for New England on a square footage basis. According to sources, current owner Fortis Property Group is now hoping the magic will spin once more, aiming for a level approaching $1 billion. If that lofty 10-figure milestone were achieved, the price would amount to $961 per sf.

“The way things are going, maybe,” one observer says of the prospects for achieving such a return, and most concur $900 million-plus should be attainable. The tower last sold in December to New York City-based Fortis for $889 million, or close to $854 per sf. The marketing campaign is sailing into the teeth of a fickle financing climate, and super-sized transactions are considered the most vulnerable to a prolonged downturn. But some observers note that foreign investors, major pension funds and all-cash buyers are not as affected by the debt disruption that took hold nationally this summer as are those requiring highly leveraged loans.

In any event, sources claim the new ownership has opted to test the financial waters, and say Eastdil Secured’s Boston office has been selected to handle the assignment. A broker in the Boston office declined comment when contacted by GlobeSt.com, while calls to the firm’s headquarters in New York City were not returned by press deadline. Sources insist that Eastdil is brokering the deal, however.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.