If the deal goes through in early 2005 as expected, it would bethe second major purchase here in two months for Beacon, which paid$77 million for 116 Huntington Ave. last month. The purchase wouldbe financed by its BCSP III Fund, a $1-billion investment fundwhich focuses primarily on target markets in major cities. BeaconCapital and owner Shorenstein Co. did not return phone calls beforedeadline.

The office park was put out to bid this fall by the SanFrancisco-based Shorenstein and investment partner the StateTeachers and Retirement System of Ohio, which acquired the asset in1995 for approximately $160 million. Cushman & Wakefield, theexclusive broker for the sale, received more than 50 signedconfidential agreements on the property, principal Edward C. Mahertold GlobeSt.com and suitors in the final process included BostonProperties and RREEF Funds.

Completed in 1998, Bay Colony is located on Route 128 andoverlooks the Cambridge Reservoir. It sits on a 58-acre landscapedparcel with three four-story buildings and one three-storybuilding, and has over 3,000 parking spaces. The office space iscurrently 91% occupied with tenants including Private Healthcare,SAP America, PRTM and Charles River Ventures.