BOSTON—Newmark Knight Frank (NKF) has completed the $845 million sale of 53 State Street in Downtown Boston to a joint venture between Allianz Real Estate of America, Beacon Capital Partners and the Pension Reserves Investment Management Board (PRIM).
On behalf of a fund managed by UBS Asset Management, REPM, Real Estate-US, Vice Chairman Edward Maher, Executive Managing Director Matthew Pullen and Managing Director James Tribble of NKF’s Boston Capital Markets team – which is led by Co-Head of U.S. Capital Markets Robert Griffin – oversaw the transaction of the 1.2 million-square-foot trophy office tower and associated 126-space parking garage.
Matthew Lynch, Head of UBS Asset Management, REPM, Real Estate-US said, “This sale represents the successful culmination of value creation for our clients through re-leasing and repositioning of a prominent office tower in Boston.”
Also known as Exchange Place, 53 State Street is the result of a successful union between the historic 11-story Boston Stock Exchange building and a modern 40-story, reflective blue-glass office tower joined by an expansive seven-story atrium lobby. The asset is presently 93 percent leased to a diverse tenant roster anchored by Hill Holliday, Nixon Peabody LLP, Acquia, The Boston Globe and Marcum LLP.
“53 State Street represents one of the most iconic trophy towers in one of the United States’ most sought-after gateway cities,” said Maher. “With flexible floor plates and tenant-dedicated amenities including a best-in-class twelfth-floor roof deck, the asset has recently enjoyed exceptional leasing activity resulting in brand-new, high-end tenant buildouts.”
53 State Street comprises an entire city block at the prestigious corner of State and Congress Streets, providing tenants with immediate access to Faneuil Hall Marketplace, the Park at Post Office Square and the Rose Fitzgerald Kennedy Greenway. The asset also offers an exceptional commuter location with on-site access to the MBTA Blue and Orange Lines, walkability to the MBTA Red and Green Lines, South Station and North Station and swift access to Interstates 90 (Massachusetts Turnpike) and 93.
NKF’s Boston-based debt team, led by Executive Managing Director David Douvadjian, oversaw financing for the transaction.