One Federal St. Might Bring in More Than $500M

"There's no question about it," Cushman & Wakefield's Robert Griffin Jr. says of the more than $500 million the building is expected to bring in for owners. "It has a real quality rent roll and has always attracted the best tenants."

Last year building manager ING Clarion inked a 15-year lease for 300,000 sf with local law firm Bingham McCutchen LLP. The building also has large existing leases with Bank of America, State Street Corp., Credit Suisse First Boston, and Bear, Stearns Securities Corp. "They (Jamestown) just signed that big lease with Bingham so the building is fully leased and they are considering their returns for their investors," Griffin notes when asked why the owners chose to put the site on the market now.

Griffins says the owners have not put an asking price on the property but with bids expected to be in the $500-million range, or about $450 per sf, the sale could top the price of other towers sold in Boston in 2005. He will begin marketing the property next week and expects it will have a new owner within four to five months.

One Federal was built in 1976 as the world headquarters for Shawmut Bank, which was bought out by Fleet Financial Group in 1995 and later swallowed up by Bank of America Corp. in 2004. The building is situated on 1.3 acres and takes up the entire block between Federal and Devonshire streets. The property, which is home to the Harvard Club on the top floor, features 240 underground parking spaces, first-floor retail space and unobstructed views on all sides.