MetLife, Norges JV Buys Boston High-Rise for $561M

BOSTON—MetLife Inc. and Norges Bank Investment Management report they have acquired the 34-story One Beacon St. office building here from a joint venture of Beacon Capital Partners and Allianz for $561 million.

New York City-based MetLife will own 52.5% of One Beacon St. and will be the managing member, while Norges Bank Investment Management, the Oslo, Norway-based asset manager for the Norwegian sovereign wealth fund, will own the remaining 47.5% of the high-rise that totals more than 1 million square feet of office space. The joint venture partners also own the 1.3-million-square-foot One Financial Center in Boston.

Build in 1973, One Beacon St. is LEED Platinum-certified and is currently about 85% leased. Among its current tenants are: the Massachusetts Housing Finance Agency, the University of Massachusetts, the University of Massachusetts Building Authority, Standard Life Investments (USA) Limited and JPMorgan Chase Bank, National Association.

“One Beacon St. in Boston adds a high-quality asset in a core market to our joint portfolio with Norges Bank Investment Management,” says Robert Merck, senior managing director and global head of real estate investments for MetLife. “Our partnership with the world's largest sovereign wealth fund is built on a strategy of providing first-rate asset management and of investing for the long-term to bring strong returns to our stakeholders.”

This is the fourth property acquired by the MetLife, Norges joint venture. The two other properties in the joint venture's portfolio are: District Center (formerly the Thurman Arnold Building) at 555 12th St., NW in Washington, DC and 425 Market St. in San Francisco.