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Verizon Takes Another Shot at HQ Sale

BOSTON-The 18-story, 875,000-sf building is being put on the market for a second time. Verizon had taken a run at a sale last summer.

By Joe Clements | Updated on February 05, 2008

BOSTON-Verizon Communications Inc. is taking another stab at selling its landmark headquarters building here, with the firm said to be hiring CB Richard Ellis to market the 18-story, 875,000-sf structure. Verizon had retained the Staubach Co. last summer to handle the disposition, but reportedly was unmoved by the bids tendered and scrapped the process late last year.

Some observers claim the initial effort generated substantial interest among the region’s top real estate development firms. “I thought Staubach did a great job,” says one Boston investor whose firm submitted a bid, while another source claimed there were as many as 17 offers filed. Various factors supposedly kept pricing down, including a fortress-like design featuring massive 50,000-sf floor plates and imposing interior columns that make it difficult to reposition as a multi-tenanted building. Redevelopment of the historic building is likely the only option, most agree. Also, Verizon supposedly needs to keep partial ownership to accommodate telecommunications equipment, making clear title harder to secure.

“It’s a very complicated deal,” says one source who surmises that Verizon did not take those issues into account when establishing a price minimum. The property was also pitched in the heat of the investment sales meltdown that began just as marketing commenced. By some estimates, Verizon was looking for more than $100 million above what the offers submitted, said to be running in the low $200-million range. Staubach officials declined comment on the matter when contacted by GlobeSt.com.

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