X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BOSTON-Yet another commercial building in the city’s Fort Point Channel district is reportedly about to change hands, continuing a pattern of property transfers that has dominated the area for much of the decade. The latest asset is 285 Summer St., a seven-story, yellow-brick building that houses Payette Associates, one of New England’s top life sciences architectural firms.

Several current and past principals of Payette own the building, including namesake Thomas Payette, but sources say the asset is under agreement to Aegean Capital LLC, a New York City-based investment group founded last year by Constantine Alexakos. The firm is presently performing due diligence, sources say, but is expected to complete that process shortly. According to some estimates, the 54,000-sf building could trade for close to or above $300 per sf, with the deal projected between $14 million and $16.5 million.

If the deal does reach that level, it would be near record pricing for the submarket, with only a few other sales topping the $300-per-sf threshold. Fort Point Channel and the larger Seaport District have been a popular target for investors, many lured by the rebounding class B office market and the upside from billions of dollars in public infrastructure that has poured into the area. The city’s gleaming new $800-million convention center is just a few blocks east from 285 Summer St., while the South Station transit center and Financial District are located nearby to the west.

“Its one of the best buildings on Summer Street,” relays one observer familiar with 285 Summer St. Attributes include abundant natural light, 14-foot ceilings and substantial investment into the property’s interiors. There is also a level of parking and a flexible footprint that can accommodate a single user or multiple tenants. One supposed question mark is the future of Payette Associates at the home where it has been since the early 1990s. The company has just under four years left on its lease, offering a measure of term but flexibility for possible future uses. Some of the prospective buyers supposedly were eyeing 285 Summer St. as a residential play, but renewal of Payette is another option others were said to favor.

At this point, none of the parties involved are discussing the matter. Calls to Thomas Payette were unreturned, while Alexakos declined comment, citing confidentiality agreements. The building is being marketed by Richards Barry Joyce & Partners. Principal Richard Bradbury, who is handling the assignment with colleague Richard Herlihy, also would not talk about the status. Nonetheless, sources insist Aegean Capital has the asset tied up and is working to a close. If successful, it will be the second Summer St. building Aegean has acquired in the past year, with the firm also emerging victorious last summer after a spirited battle for 268 Summer St. across the street.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.