Allianz Loans $150M to Refinance Boston Office Tower
The company will refinance a $150 million loan on the 350,534-square-foot, 265 Franklin St., which is currently 97% occupied.
BOSTON – Acting on behalf of several Allianz Group companies, Allianz Real Estate has signed an agreement with a joint venture partnership between Clarendon Properties and a fund managed by BlackRock, to refinance a $150 million loan on an office building in Boston.
The 21-story, 350,534-square-foot property, 265 Franklin Street, is located in Boston’s financial district and is currently 96.5% occupied by a mix of 36 tenants. The office tower’s two largest tenants have long-term contracts in place.
Situated near various public transit options, the property additionally features ground floor retail stores, which occupy an entire block.
The loan aligns with Allianz Real Estate’s focus of investing in core assets.
“2020 has proven to be a difficult but dynamic year,” states Allianz Real Estate’s co-head of US debt Mike Cale. “We have continued to complete transactions with existing clients as well as expand our institutional client base. This transaction represents a key part of that strategy by enhancing our footprint in the US in 24×7 cities, like Boston, that offer long-term growth opportunities despite the crisis. A stand-alone office building in the intersection of major transportation options, hotels and retail offerings is an opportunity to be part of Boston’s most dynamic area at the heart of its financial center.”
“The loan on 265 Franklin reaffirms our commitment to US prime locations while keeping the focus on long term investment objectives,” says Christoph Donner, CEO of Allianz Real Estate of America. “This core asset will contribute to the resilience of our portfolio, especially during the next 12-18 months while the US is working through the Covid-19 pandemic. Properties in the center of Boston’s downtown financial district will continue to remain relevant, both as a place to work and as an investment opportunity.”
“We are delighted to have completed the refinancing of 265, Franklin Street with Allianz Real Estate,” states Tony Leonard, managing director of Clarendon Properties. “This continues a great working relationship we have established with them over a number of years. We are indeed appreciative, to all at Allianz, for their fulsome support, to the joint venture Partnership, particularly in these unprecedented times.”