BPG Partnership Acquires Interest in 3M SF John Hancock Tower Office Complex

BOSTON-BPG Co-Investment Partnership LP, a co-investment venture between Berwind Property Group Ltd. and Pennsylvania Public School Employees’ Retirement, acquired an ownership interest in the John Hancock Tower and Complex.

John Hancock Financial Services Inc. put the buildings on the market this past December, saying it wanted to take advantage of the current investment market, which is looking to put money in real estate in prime locations with creditworthy tenants. The property was acquired this past March through a joint venture between Beacon Capital Partners and Lehman Brothers Holdings Inc. which paid $910 million for the property. The sale of the three-building complex is one of the city’s most significant real estate deals in recent history.

Lehman Brothers provided bridge equity to facilitate the acquisition and its position was replaced by a group of institutional investors, including the BPG/PSERS Fund. A spokesperson for Berwind Property Group tells GlobeSt.com that when Lehman was prepared to sell, the asset was privately marketed to “selected investors.”

Another company representative tells GlobeSt.com that the pricing and the percentages that BPG purchased cannot be disclosed, but notes that BPG/PSERS Fund acquired a piece of Lehman’s equity. An industry source tells GlobeSt.com that Lehman held close to 50% of the asset.

The complex is comprised of a 60-story tower at 200 Clarendon St., 197 Clarendon St. and 200 Berkeley St. as well as a parking garage. According to Daniel M. DiLella, president of BPG, “The acquisition of an interest in this first-class asset is a perfect fit for the Co-Investment Fund’s portfolio.”

The BPG Co-Investment Partnership LP. is a special purpose real estate fund with $44 million of equity remaining to be invested. BPG’s Investment Partnership VI, LP. is seeking value-added investments across all property types for more than $200 million of remaining equity in that fund.