RP Beal One LLC, a joint venture between Rockpoint Group LLC andthe Beal Cos. LLP, picked up the partly vacant former US Armystructure at 451 D St. from Hypo Real Estate Capital Corp., asubsidiary of Munich-based Hypo Real Estate Bank International.Hypo has held the building since 2004 after it was repossessed fromits previous owners, who held a $64-million loan on theproperty.

Stephen Faber, vice president of asset management with Beal,tells GlobeSt.com that the partners plan to invest several milliondollars into upgrading the property as they mount a campaign tolease up the 300,000 sf which currently remains vacant."Realistically speaking, we think that given the amount of squarefeet we have available, the lease-up will take at least two years.But we think the market is improving and will continue to improveas additional private investment is layered on top of thesignificant public investment that has already been made."

Faber says the new owners expect the building will remain asoffice space, despite the previous owner's decision to seekapproval from the Boston Redevelopment Authority to turn a portionof the property into a 263-unit residential condominium with 18,000sf of retail space. Part of the ground floor may, however, be builtout as a restaurant sometime in the future, he adds.