BOSTON-AREA Property Partners is selling 33 Arch St. to TIAA-CREF for $365.8 million. The 600,000-square-foot trophy office is at 90% occupancy and commanded a 5% cap rate. Eastdil Secured represented the seller in the deal.
The property was constructed in 2004 and rises 33 stories into the Boston skyline, which has strict regulations limiting the height and number of skyscrapers in the city. The class A property has and 821-space garage and boasts Digitas, The Securities and Exchange Commission and DLA Piper Rudnick as tenants. Located in the Financial District, the property was 51% owned by New York headquartered AREA and 49% owned by Quebec-based SITQ Immobilier in a joint venture. The property was officially owned by AREA Properties Value Enhancement Fund IV and partner Ivanhoe Cambridge.
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Steven Wolf, partner, head of portfolio management and US Value Enhancement Funds, tells GlobeSt.com that the reason for the sale was simply, “We stabilized the asset and there had been a real demand for core office building this summer.” He notes that their fund has been a net seller of core office for most of the summer and the plans for their future are on already in the works.
“We’ve been very active on the industrial side,” he explains. “We just made an announcement on a Washington Real Estate Investment Trust asset in DC which…it was a three million square feet. We bought another four million square feet on bulk industrial, so that’s a little over seven million square feet of industrial. And on the multifamily front, we’ve bought almost 5,000 units recently and we’re under agreement to buy another 4,000 units.”
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