Rockefeller Group Led Venture Sells 28 State Street Tower for $418M
The building, located at the intersection of Congress and State streets in the Financial District, features approximately 572,000 square feet of office space and 7,000 square feet of retail space.
BOSTON—A joint venture that includes New York City-based Rockefeller Group, U.S. Premier Office Fund LP and Mitsubishi Estate New York have sold the 40-story office tower at 28 State St. here for approximately $418 million.
TA Realty LLC reported the transaction. The Boston-based real estate investment management firm arranged the sale for the selling joint venture. Multiple trade press venues have reported that Heitman Capital Management, which has North American offices in Chicago and Los Angeles, acquired the building. Globest.com could not confirm those reports at press time.
The building, located at the intersection of Congress and State streets in the Financial District, features approximately 572,000 square feet of office space and 7,000 square feet of retail space. The building was 95% occupied at the time of the sale. TA Realty provided asset management and advisory services to the seller, helping the ownership group significantly enhance the property’s value through operational and capital improvements.
“The asset quality and ideal location together with strong market fundamentals made 28 State Street a highly compelling acquisition opportunity,” says Jim Raisides, partner at TA Realty. “This trophy property produced a very competitive bid process which resulted in a sale to a well-capitalized domestic institutional investor. We believe the purchase price reflects the value we helped create over the ownership period.”
In 2014, the joint venture of Rockefeller Group Investment Management Corp. and Mitsubishi Estate New York acquired the 28 State St. office tower from Blackstone for a reported price of $345 million.
Designed by Emory Roth & Sons, 28 State St. is in select company, being one of only eight buildings in Boston 40 stories or higher. The property benefits from a complete renovation that occurred in the late 1990s resulting in significant enhancements to its infrastructure and systems, lobby and outdoor spaces.
Last month, Rockefeller Group announced that law firm Blank Rome leased 138,000 square feet at its 48-story 1271 Avenue of the Americas building. Blank Rome will occupy floors 15 through 17, as well as part of the 14th floor, with possession scheduled in the fourth quarter of 2018. The law firm, which has 13 offices and more than 600 attorneys and principals, plans to relocate from the Chrysler Building in 2019.