BOSTON—Tishman Speyer has increased its presence in the Seaport District with the acquisition of the newly constructed One Channel Center office building and adjacent parking garage.
The property, which is fully leased to State Street Corp., totals 501,650 square feet. The parking garage that was part of the deal offers 965 spaces. State Street Corp. is the sole tenant in the property through 2029. The property and garage traded for $316.5 million, according to Suffolk County land records cited in a report in the Boston Business Journal.
"The Boston office market is currently very strong and we believe it will be strong over the long term," states Tishman Speyer president and CEO Rob Speyer. "This is a signature office building that is well situated in what is a vibrant mixed-use neighborhood with a great future. As such, it fits perfectly with our strategic portfolio growth plan in Boston, one of the nation's great cities, as we look for opportunities to continue developing and acquiring world-class properties to serve the needs of leading companies there." Tishman Speyer declined to comment further on its purchase of the property.
The 11-story office building was completed in June 2014. In August 2014, a venture of affiliates of Ares Management LLC and CV Properties LLC secured $240 million in permanent financing for the newly built One Channel Center office building and Channel Center garage,
The financing was structured as a $190-million first mortgage, and a $50-million mezzanine loan and arranged by HFF, which also arranged the $170-million construction loan for the property in 2012. One Channel Center and the Channel Center garage are located within the larger Channel Center master-plan area, a 2.1-million-square-foot mixed-use neighborhood combining first class office, luxury residential, and street front retail and restaurants anchored by a series of landscaped parks including the 1.7-acre Channel Center Park.
According to the company's website, Tishman Speyer's portfolio in Massachusetts totals nearly 3.2 million square feet. Among its chief office holdings includes One Federal St., a 38-story, 1.18-million-square-foot office building completed in 1976 in the city's Financial District. The company also owns the 30-story 125 High St. office building, also in the Financial District, which totals 1.48 million square feet. That property was completed in 1991. Earlier this year, Tishman reported two significant lease deals at 125 High St. with Wells Fargo and Houghton Mifflin Harcourt.
In January Tishman unveiled its ambitious Pier 4 project in the Seaport District that will involve the construction of a 13-story, 373,000-square-foot commercial building, primarily for office use; a nine-story, 100-unit luxury residential condominium building and a three-level below-grade parking facility.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
