BOSTON-The deal to sell 1 Federal St., a 38-story tower located in the heart of the financial district here, has closed. The sale of the 1.1 million-sf building,, which was for $375 million, demonstrates the continued strength of the office market here.
Atlanta, Georgia-based Jamestown purchased the building from the IBM pension fund. Clarion partners represented the fund while the investment advisory group in Trammell Crow Co. brokered the deal. Jamestown is an investment fund comprised of German investors and One Federal, a class A property in a strong urban center is indicative of the type of assets foreign investors are interested in.
This tower, with its list of solid, creditworthy tenants–including Fidelity Investments, Fleet Bank and Bear Stearns–has also become indicative of the type of assets that are attracting interest here. It was just a year ago that buildings loaded up with high tech tenants couldn’t be sold fast enough, while now it is the staid, traditional firms that landlords are want in their buildings.
The deal is one of the largest commercial real estate sales in recent history here. It comes right on the heels of the sale of 99 High St. for $213.5 million or $292 per sf–a building that was sold 15 months after it was bought at the height of the market for $168.5 million.