BOSTON — Synergy and Axonic Capital have acquired 265 Franklin St., a 358,406-square-foot Class A office tower in Downtown Boston, marking the first joint venture between the two firms and expanding Synergy’s growing presence in the city’s central business district.
Financial terms of the acquisition were not disclosed.
The 21-story office building occupies a full city block bounded by Franklin, High, Oliver and Batterymarch streets and is located between Post Office Square and the Rose Kennedy Greenway. The property offers convenient access to South Station, major MBTA transit lines, Interstates 90 and 93, and numerous downtown restaurants, hotels and retail destinations.
Synergy said the acquisition establishes a strategic partnership with Axonic Capital focused on investing in institutional-quality commercial real estate.
“265 Franklin Street is an exceptional asset located at one of the most important intersections in Downtown Boston,” said David Greaney, founder and CEO of Synergy. “Its institutional-quality construction, flexible floor plates, extensive recent capital improvements, and premier location create a compelling opportunity to continue enhancing the tenant experience while benefiting from the ongoing recovery and evolution of Boston’s office market. We are especially excited to establish this partnership with Axonic as we continue to grow our portfolio across Downtown Boston.”
Eric Sitman, managing director and portfolio manager at Axonic, said the acquisition reflects the firm’s confidence in the long-term outlook for Boston’s office sector.
“We’re excited to partner with Synergy, whose operating expertise and longstanding presence in Boston make them an ideal steward of 265 Franklin Street,” Sitman said. “We have a high degree of conviction in Boston’s long-term fundamentals and believe today’s market presents a compelling opportunity to acquire institutional-quality Class A office assets at a reset basis.”
The building is currently leased to 27 tenants across a range of industries, including law, financial services, investment management and business organizations. Major tenants include McCarter & English, Ares Management, White Mountains, Cerity Partners, the Greater Boston Chamber of Commerce and Rhumbline Advisers.
According to the companies, the property has benefited from substantial capital investment over the past decade, with approximately $18.6 million spent on building improvements and another $26.5 million invested in tenant improvements.
Amenities include a full-service fitness center, Nourish Grab & Go, a Dunkin’ location and a two-level parking garage with 125 spaces. The building has also earned several sustainability and technology certifications, including LEED Gold, Energy Star NexGen and WiredScore Platinum.
Matthew Godoff, Synergy’s executive vice president and head of investments, said the company continues to see opportunity in Downtown Boston despite broader challenges facing the office sector.
“Downtown Boston remains one of the premier urban business environments in the country,” Godoff said. “We continue to see opportunities in acquiring and enhancing well-located assets that provide exceptional experiences for tenants and contribute to the long-term vitality of the city.”
The acquisition underscores Synergy’s continued investment in Downtown Boston and reflects the firm’s long-term confidence in the city’s office market as demand continues to stabilize for well-located, amenity-rich Class A properties.
