Historic Government Center Building Changes Hands

Sears’ Crescent Building, Boston, MA

BOSTON—Locally-based Copley Investments has sold the iconic Sears’ Crescent Building here in the Government Center district for nearly $24 million. Chevron Partners of Boston purchased the 50,300-square-foot mixed-use boutique building in a joint venture with Paris-based investment firm Fulton for $23.8 million. The Sears’ Crescent Building, constructed in 1816 by architect David Sears, is a six-story building that contains first floor retail space along City Hall Plaza and office space above. The neighboring Sears’ Block was built in 1848 and was also designed by Sears. Both buildings were named to the National Register of Historic Places. The Sears’ Block property was not part of the transaction. The Sears’ Crescent Building is 100% leased to a total of 14 office and retail tenants. Newmark Grubb Knight Frank reported the sales transaction. The Boston NGKF Capital Markets Group, led by U.S. head of capital markets Robert Griffin , vice chairman Edward Maher , executive managing director Matthew Pullen and managing director Justin Smith , oversaw the transaction on behalf of seller Copley Investments. “The historic Sears’ Crescent Building has been meticulously maintained and privately owned for nearly a generation,” says NGKF’s Pullen. “Combined with its durable in-place cash flow and significant upside potential as leases mature within Boston’s rising-rent environment, the property represents a truly unique office and retail asset.” Marcel Safar , managing partner of Chevron Partners, says, “The building fits perfectly into our longer-term quality asset strategy with significant value-add potential. As our third acquisition in Boston since 2014, we look forward to continuing to distinguish ourselves through the quality of our assets and our team’s effective management of transactions, from selective sourcing through all phases of asset development.” He adds that Chevron Partners will serve as the asset manager for the property and affiliate Chevron Design and Construction will serve as the general contractor for the planned capital improvements to the building. Safar would only say that the capital improvement plan is being developed at the moment. The property will remain retail and office but “will be upgraded to reflect our brand,” he says. The significant public and private investment in and around the City Hall Plaza and the Government Center neighborhood attracted the firm to the property and will give it long-term value, he adds. “In our office sector we look for Class B buildings that show potential to combine the most modern and efficient 21 ^st Century office interiors in a very classic and historic Bostonian envelope,” Safar says. “We like to try to give an exceptional boutique service, while also giving a brand identity to our tenants.” He adds that the Sears’ Crescent Building fits right into that niche. Chevron Partners and joint venture partner Fulton are also working on the development of its seven-unit Maison Vernon luxury residential development in Beacon Hill as well as a similar project to Sears’ Crescent in the 10 Winthrop Square boutique office building in Downtown Boston. Chevron Partners is currently in the midst of redeveloping that property.