BOSTON, MA – Holliday Fenoglio Fowler, L.P. (HFF) announced that it has closed the $79 million sale of 50 Congress Street, a 179,872-square-foot office building occupying an entire city block in the heart of Boston’s bustling downtown.
HFF arranged the sale of the property on behalf of the seller, an affiliate of KBS Capital Advisors, and procured the buyer, a joint venture arranged between Jumbo Capital Management and Guggenheim Real Estate.
Originally designed by renowned architect Andrews, Jaques & Rantoul as the headquarters for State Mutual Life Insurance, the building was constructed in two phases between 1910 and 1915. Today, it is 90 percent leased to over 60 tenants and features a vibrant first-floor retail component. The tenant roster includes a mix of law firm, retail, private equity and financial services tenants, with 20 percent of the tenants having been in occupancy for more than 12 years.
“Jumbo Capital is excited to bring the success it has had with revitalizing over two million square feet of suburban assets to the downtown Boston market,” said Jay Hirsh, managing partner of Jumbo Capital Management. “50 Congress Street provides an excellent canvas to create an upscale and inviting feel while restoring many of the historic features of the property”.
“Downtown Boston is one of the strongest office markets in the United States with a vacancy rate that continues to remain very low and rents that are on the rise,” said Ben Sayles, director at HFF. “Being located just steps from Post Office Square and directly across from the future headquarters of Digitas/Publicis Groupe at Congress Square, 50 Congress Street occupies an irreplaceable position within the urban core.”
The HFF investment sales team representing the seller was led by Coleman Benedict, Christopher Phaneuf and Ben Sayles.
Along with the sale, HFF has also been retained by the buyer to secure acquisition financing, which is being led by Lauren O’Neil.