BOSTON — A prominent office property in the heart of Boston’s Financial District is headed to auction, offering investors and developers a rare opportunity to acquire a large-scale downtown asset with approved plans for residential conversion at a time when adaptive reuse projects are reshaping urban office markets nationwide.
The property, located at 85 Devonshire Street and spanning portions of 258 and 262 Washington Street, consists of approximately 91,506 square feet across three interconnected historic buildings in Boston’s central business district. The fully vacant Class A office property is being marketed by CBRE in partnership with Apex Commercial Exchange and is scheduled to be sold through an auction beginning June 15 and concluding June 17.
“85 Devonshire represents the type of opportunity that continues to attract sophisticated investors seeking well-located urban assets with multiple paths to value creation,” said Kevin Lipson, CEO of Apex Commercial Exchange. “With approved residential conversion plans already in place, exceptional transit connectivity, and full vacancy providing immediate flexibility, this offering is uniquely positioned at the intersection of Boston’s evolving office market and the growing demand for adaptive reuse opportunities in major gateway cities.”
Originally constructed between 1901 and 1920 and extensively renovated in 2015, the buildings combine historic architecture with modernized infrastructure, positioning the asset for a range of redevelopment strategies. The offering arrives as investors across major U.S. cities increasingly pursue office-to-residential conversions amid shifting workplace demand and persistent housing shortages.
What distinguishes the Devonshire Street offering is that much of the entitlement work has already been completed. The property received approval from the Boston Planning & Development Agency in April 2024 and subsequent approval from the Zoning Board of Appeal in August 2024 to convert floors two through eleven into 95 residential units.
The approvals place the project squarely within Boston’s broader initiative to encourage office-to-residential redevelopment downtown, a policy effort aimed at revitalizing underused office inventory while expanding the city’s housing supply. For developers, securing such approvals in Boston can often require years of planning, permitting, and public review, making pre-approved conversion opportunities relatively uncommon.
Situated at the intersection of Devonshire, Washington, and Water streets, the property occupies one of the city’s most transit-oriented locations. The site is within steps of the MBTA’s Orange, Red, Green, and Blue subway lines and is within walking distance of both South Station and North Station, providing access to commuter rail, Amtrak, and regional bus service. Interstate 90 and Interstate 93 are also nearby, while Logan International Airport is accessible within a short drive.
The location, long considered one of downtown Boston’s most established commercial corridors, places the property amid major financial institutions, restaurants, hotels, retail destinations, and historic landmarks. The building holds a walk score of 99 and a transit score of 100, underscoring the area’s dense urban connectivity.
Because the property is fully vacant, future ownership will inherit unusual flexibility compared with many urban office assets that remain tied to long-term tenant obligations or staggered lease expirations. Investors could pursue a traditional office repositioning strategy, capitalize on the approved residential conversion plans, or explore a mixed-use redevelopment that blends residential, office, hospitality, or retail components.
Market participants say buildings with smaller floor plates and strong transit access continue to attract interest from boutique office tenants despite broader weakness in the office sector. At the same time, residential conversion projects in Boston have drawn increased attention from institutional investors seeking exposure to the city’s historically resilient housing market.
The auction will open with a starting bid of $3 million. The sale is being offered on a non-contingent basis, requiring prospective buyers to complete due diligence prior to bidding. The successful bidder will be required to submit an earnest money deposit equal to 10% of the purchase price, with a minimum deposit of $20,000 due by 5 p.m. Eastern time on the day following the auction’s conclusion.
An exchange fee equal to 5% of the purchase price, or a minimum of $25,000, will also apply.
The property is being marketed by CBRE investment sales professionals Scott Dragos, Jamie Faber, Kristin Joyce, and John McLaughlin.
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Apex Commercial Exchange® (ACE) is a technology-enabled commercial real estate marketplace specializing in property and note sales through traditional listings, qualified auctions, and online auction events under its signature platform, ACE The Auction®. Combining institutional real estate expertise with data-driven marketing and AI-powered technology, ACE delivers transparency, competition, and market-driven execution for buyers, sellers, and brokers nationwide.
