“The repositioning of the building will give tenants some greater flexibility with large floor plates and it will offer fantastic amenities such as a shared conference center and retail amenities at a Class A building under Shorenstein ownership,” Kennedy says. Shorenstein Properties previously told Globest.com that the repositioning of the building would cost between $20 million to $25 million to complete. Shorenstein purchased Center Plaza in late 2013 for $307 million. The property was built in stages between 1965-1969 by the Leventhal family.

Last September, Localytics, a lifestyle engagement platform, announced it will be relocating operations from Arch Street to the 2 Center Plaza office building. The firm signed a lease for 55,000 square feet and expects to move into its new space in March of this year. Localytics, which also has offices in San Francisco and London, currently occupies 18,000 square feet at 101 Arch St.

Kennedy says that the ownership is looking to land a fitness center type operation to lease about 18,000 square feet of retail space on the first floor of the building. In terms of the office leasing demand at the property, he says that his firm is in negotiations on several deals involving leases that range between 3,000 square feet to 30,000 square feet of office space. While he would not identify the names of the tenants involved, he said the potential transactions involve new leases and renewals/expansions.

He believes that tenant demand is strong in Boston and that there is currently approximately 500,000 square feet of demand from tenants outside of Boston, including Kendall Square in Cambridge, looking to relocate to Downtown properties.

BOSTON—The major renovation work on the exterior of the Center Plaza complex here is expected to begin in earnest this year in a redevelopment initiative that has been pegged at more than $20 million.

Kevin Kennedy, senior vice president/partner with CBRE/New England in Boston, tells Globest.com that work on the interior renovations has already begun as part of the ownership's repositioning of the three-building complex. That work includes improvements to the common areas and rest rooms. The renovations are intended to reposition the property in order to attract what Kennedy terms are stable “new economy” companies to the building.

The renovation program to the exterior of the building will include improvements to the street-level lobbies, entrances to the property and first floor retail space. The exterior renovations are in the design phase, but Kennedy believes that all approvals will be granted in the near future so that work can begin in 2016. The renovations will also include new exterior and interior building signage, rooftop upgrades and the inclusion of retail, dining and entertainment space along a 900-foot retail frontage on Cambridge Street. Other improvements call for new pavers, benches, lighting and greenery to the office complex that totals 717,128 square feet.

The mixed-use property includes approximately 80,000 square feet of retail space and a 575-car parking garage. The building will be losing its major tenant when the FBI leaves its offices at 1 Center Plaza for its new facility being built in Chelsea. The agency leases approximately 150,000 square feet of space at Center Plaza. CBRE/New England is marketing that space for occupancy in 2017. CBRE/New England represents the ownership—Shorenstein Properties—for the office space component of the property, while Newmark Grubb Knight Frank is handling the leasing for the retail space at the property.

“The repositioning of the building will give tenants some greater flexibility with large floor plates and it will offer fantastic amenities such as a shared conference center and retail amenities at a Class A building under Shorenstein ownership,” Kennedy says. Shorenstein Properties previously told Globest.com that the repositioning of the building would cost between $20 million to $25 million to complete. Shorenstein purchased Center Plaza in late 2013 for $307 million. The property was built in stages between 1965-1969 by the Leventhal family.

Last September, Localytics, a lifestyle engagement platform, announced it will be relocating operations from Arch Street to the 2 Center Plaza office building. The firm signed a lease for 55,000 square feet and expects to move into its new space in March of this year. Localytics, which also has offices in San Francisco and London, currently occupies 18,000 square feet at 101 Arch St.

Kennedy says that the ownership is looking to land a fitness center type operation to lease about 18,000 square feet of retail space on the first floor of the building. In terms of the office leasing demand at the property, he says that his firm is in negotiations on several deals involving leases that range between 3,000 square feet to 30,000 square feet of office space. While he would not identify the names of the tenants involved, he said the potential transactions involve new leases and renewals/expansions.

He believes that tenant demand is strong in Boston and that there is currently approximately 500,000 square feet of demand from tenants outside of Boston, including Kendall Square in Cambridge, looking to relocate to Downtown properties.