Bill Rand, director of commercial real estate for Archon Group's local office, and John McNamara, director of dispositions, led this transaction, with Secured Capital and Spaulding and Slye serving as brokers.
McNamara tells GlobeSt.com that the deal was part of the company's overall strategy when it acquired the two properties at the end of 1999. McNamara notes that Archon did major renovations on both buildings and got them leased up to 64% occupancy. "These sales reflect our strategy of disposing of select facilities that have met our investment parameters," says McNamara.
The area continues to experience a vacancy rate of approximately 14%, according to Grubb & Ellis's most recent statistics. Average asking rents for similar space in the area are approximately $43 per sf.
The 11-story, 65,007-sf 3 Post Office Square is an office/retail facility featuring an atrium central staircase and recent upgrades to all HVAC systems, windows and elevators. The 74,353-sf 24 Federal St., an office and retail facility, also features a recently upgraded marble lobby, new elevators and HVAC system, as well as ADA upgrades.
Archon Group was founded by the Goldman Sachs Group Inc. in 1996 when it acquired and consolidated the investment, asset management and development functions previously performed by third parties for a variety of private and institutional owners.
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