"It has nothing but upside," says Browne Realty Advisors' principal Mark Browne, who negotiated the building's transfer on behalf of the buyers, 17-33 Winter St. LLC, and the sellers, Janelon Realty Trust. Having purchased the Manhattan Clothing building at 40-46 Winter St. five years ago for $2.2 million, the buyers now have "a dominant presence" on the strip, says Browne. Owned by Joseph, Mary and Morris Naggar, Manhattan Clothing has been in Boston since the 1980s. The anchor store is located in Cambridge's Central Square.

Leased on the lower levels to Bally Total Fitness and Staples, 17-33 Winter St. is part of the so-called Ladder District, a series of narrow streets running perpendicular to the Boston Common and Washington Street, Downtown Crossing's main thoroughfare. Winter Street is considered especially valuable for retail thanks to the presence of three subway lines and direct pedestrian connection to Summer Street leading to South Station and the emerging Seaport District. An estimated 100,000 people traverse the district daily.

Janelon's ownership of 17-33 Winter St. dates to 1975 when the entity was under the stewardship of the late Sidney Covich, one of Boston's more visible and active developers in the 1970s and 1980s. Covich's renovation of 17 Winter St. was considered a catalyst for the street becoming a recognized retail destination, while the Newton resident also overhauled several other Downtown Crossing assets.