BOSTON—Rubenstein Partners, L.P. has sold its stake in the 1000 Washington St. office building and adjoining parking garage at 321 Harrison Ave. here to Los Angeles-based CIM Group.
Nordblom Co., the owner and operator of the 242,000-square-foot office building and 309-stall, four level parking garage, retains ownership and management of the properties that it has owned since 2006.
Philadelphia-based Rubenstein and Nordblom of Burlington, MA acquired 1000 Washington St. and the adjoining parking garage for $75 million in late 2014. No financial terms of the transaction were released. In early 2016, Rubenstein and Nordblom proposed to build a new 231,000-square-foot office building atop the existing parking garage.
In September 2016, the Boston Redevelopment Authority, now called the Boston Planning and Development Authority, approved the project that also entails the reconstruction of a shared lobby with its adjoining 11-story 1000 Washington St. office building. The Boston Redevelopment Authority put the new office building project at $80 million.
A spokesperson for CIM Group had no comment on whether the new ownership would move forward with the fully approved new building project.
The deal expands CIM Group's holdings in Boston. The firm acquired six parcels totaling 2.16 acres in Boston's Fenway neighborhood in June. CIM also owns the 200 Stuart Street Garage, Motor Mart Garage, and the 114,000-square-foot 95 Berkeley St. office building.
Rubenstein officials say the firm believed the time was right to sell its stake in the property. “When we acquired 1000 Washington Street, a key investment consideration was the dramatic transformation we foresaw taking place in the New York Streets neighborhood. The rapid pace of the area's transformation, along with the additional development rights, allowed us to exit earlier than originally anticipated,” says Deke Schultze, SVP of Rubenstein Partners and director of the New England region.
He adds, “This recapitalization is also a great opportunity for our partner, Nordblom Company, to continue managing this asset and actively participating in this transformation of such an exciting part of Boston.”
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
