"We had a lot of interest," Michael Smith, with Spaulding & Slye, a member of the Jones Lang LaSalle group, tells GlobeSt.com. The property was put on the market last year by Prudential Real Estate Investors. "What made this asset unique was that it was being considered by a number of different user types."
Although Transwestern was not the high bidder among the nearly 20 investors vying for ownership, Smith said the firm's solid reputation as a deal closer and its decision to retain the building for office use were factors in its selection. Smith declined to discuss the property's sale price, but an industry source familiar with the transaction said Transwestern paid $50 million for the asset.
The building, which occupies an entire city block near the Rose Kennedy Greenway, maintained a 32% occupancy rate during its time on the market due primarily to Prudential's decision to market the property to hotel, residential and office buyers, Smith says. "It's a terrific position [for Transwestern] because rents are moving and it has a nice block of contiguous space. With no new product coming on the market until 2010, we and Transwestern thought it's a good time to buy vacancy."
The acquisition was the second in Boston and the fifth in the state for Chicago-based Transwestern, which also owns 470 Atlantic Ave. along the city's waterfront. The firm also holds office properties in Waltham, Andover and Newton. The sale was negotiated by Michael Smith, Cappy Daume, Scott Jamieson, and Gail McDonough, all with Spaulding & Slye.
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