Three Hub Buildings Sell for $24M

Senior vice presidents Cappy F. Daume and Scott J. Jamieson of the Spaulding & Slye Colliers Capital Markets Group represented the seller and introduced the buyer in the transaction.

"The Fairlane portfolio presents us with the opportunity to acquire assets in an exceptional location that are well positioned to benefit greatly as the market improves," says David Godbout, managing partner of Blakely-Stern Investment Advisors, the fund's NY-based manager. He adds that the acquisition fits perfectly with the fund's strategy of buying "core-plus" assets below replacement cost. "These assets deliver strong current cash flow and have great upside potential," he says.

Fairlane Properties will stay on as asset manager of the properties.

15 Broad St. is a 10-story 70,000 sf office and retail building, and 33 Broad St. totals 41,000 sf of office and retail space on 11 floors. Built in the Renaissance Revival style in 1910 and 1904 respectively, they are classic examples of early 20th century Boston skyscrapers. Together they frame the park that creates one of the primary entrances to 75 State St.

The 23,000 sf office and retail building at 112 Water St. is a combination of two interconnected low-rise structures built in 1873 and 1902, with a common lobby. In the last three years, all of the buildings were substantially renovated including new roofs, mechanicals, lobby and elevator cabs.

15 Broad St. and 33 Broad St. are 91% leased to numerous tenants including the Hobbs Group, Banknorth and State Street Eye. 112 Water St. is 95% leased to 12 tenants including Souper Salad and Venturi Staffing Partners.

Blakely-Stern Investment Advisors formed Ceres to provide its investors seeking portfolio diversification the opportunity to invest in commercial real estate without the burden of owning and managing it directly. The funds target commercial real estate assets in the Boston-Washington, DC corridor. Fairlane specializes in the acquisition, renovation and repositioning of multi-tenanted office buildings. Since 1997, Fairlane has purchased and renovated more than 300,000 sf in five multi-tenanted office buildings in the Greater Boston area.