James Campbell Reaps $170M in Tower Sale

BOSTON-The sale of 50 Milk St. has finally closed, as Spanish investment group Ponte Gadea pays in excess of $170 million for the 21-story, 275,000-sf office tower. The seller is James Campbell Co., a Kapolei, HI-based firm, that paid $123 million for the asset, in spring 2005, under its former name, the Estate of James Campbell.

One industry observer calls 50 Milk St. “among the better mid-rise buildings in the central business district,” and has been especially attractive to investors thanks to a long-term lease to Brown Brothers Harriman. The stability of the tenancy has been a key reason this property has consistently attracted suitors willing to pay more than the previous owner. The purchase by Ponte Gadea marks the third time in six years that the tower has changed hands, initially for $109 million to an Australian real estate fund represented by Barrington Capital Advisors. The latest transaction equates to $619 per sf versus the $396 per sf paid by Barrington’s client in late 2002.

Eastdil Secured’s Boston office represented James Campbell Co. in the divestment of 50 Milk St. on a team that included James McCaffrey, Peter Joseph and Sarah Lagosh. Eastdil did not respond to inquiries by press deadline, while efforts to contact Ponte Gadea and the sellers were also unsuccessful. One investment sales specialist marveled at Eastdil’s ability to guide 50 Milk St. to completion, given the deterioration of the commercial real estate sales market since the sub-prime mortgage crisis hit last summer. Several observers predicted then that 50 Milk St. would be a casualty of that downturn, either forcing a retrade or total collapse of the sale, as numerous transactions have endured during the past six months.