Historic Office Building Sells for $37M

The building was the first Boston purchase for the group which has been acquiring a growing portfolio of mid-sized properties in the Northeast. In the last two years, Meritage has acquired interest in seven properties valued at more than $150 million in New Jersey, New York, Maryland and Washington, DC.

Constructed in 1915 along Boston's historic Freedom Trail, the building was sold by WB Tremont LLC, a joint venture between Westbrook Partners, LLC and Paradigm Properties, which has owned the property since 1999.

Andrew Nathan, founder of Meritage, tells GlobeSt.com that the firm selected the class B property for its first Boston purchase because of its prime location and strong mix of mid-sized tenants. "This is a classic, historic, attractive, traditional office building that captures the essence of an older Boston in a newer building," says Nathan, noting that the property, which boasts a turn-of-the-century exterior, underwent $7 million in interior renovation work within the past three years, giving its interior a sleek, modern look. The property, which is about 90% occupied, is home to about 50 tenants, including the American Cancer Society, Clean Air Task Force, Archibus, and Mutual of Omaha, as well as several government tenants and law practices.

Nathan says Meritage plans to continue repositioning the asset and leasing the 19,615 sf that currently remains available. Paradigm Properties will continue to retain management duties for the property and Spaulding & Slye Colliers will serve as the building's leasing agent, he says. The sale was arranged for both parties by Spaulding & Slye Colliers' team of Cappy F. Daume, Michael G. Smith and Scott J. Jamieson.