BOSTON-Clarion Partners has closed on its $129.3-million acquisition of a six-property, 407,458-square-foot office portfolio in Boston’s Seaport District, acquiring it from a joint venture of Angelo, Gordon & Co. and National Development. Clarion acted on behalf of a separate account client of the firm, while HFF handled the sale on behalf of the sellers.
The portfolio includes the 64,204-square-foot 263 Summer St., the 94,314-square-foot 33-41 St., 34 Farnsworth St. at 24,378 square feet, 44 Farnsworth St. at 93,824 square feet, 332 Congress St. at 34,412 square feet and 374 Congress St. at 96,236 square feet. All were originally constructed for manufacturing and warehouse uses, and have been converted into office use thanks to major capital improvements. They’re currently 96% occupied, says Clarion; a release from the firm also points out that the Seaport is currently Boston’s fastest-growing submarket.
“This acquisition provides our client’s portfolio with a significant position in Boston’s fastest growing submarket,” Gary Rufrano, a Clarion SVP and the lead acquisitions officer on the transaction, says in a release. “The portfolio is well-leased to a diverse tenant base and we believe there is significant opportunity to add value to the portfolio by capturing the growth in the Seaport and by bringing rents up to market levels.”
The HFF investment sales team representing the seller was led by senior managing director Coleman Benedict and director Ben Sayles. “These buildings have great bones and really lend themselves to today’s tenants, which require open spaces, abundant infrastructure and collaborative work environments,” says Benedict in a release. He calls the Fort Point submarket, where the portfolio is located, “one of the most dynamic in the country. With a long list of tenants searching for a limited amount of available space, it is sure to continue to be so for years to come.”
The deal was first reported as pending, with a sale price of approximately $130 million, in mid-November. It’s the second Clarion investment in the Seaport District, following a 200-unit multifamily now under at 411 D St., in partnership with Cresset Group.