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.

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.