BOSTON–Boston-based real estate investor Synergy has added another major property to its downtown portfolio, acquiring 101 Merrimac Street in the Bulfinch Triangle for $22.5 million — a steep discount compared to the building’s $64 million assessed value, according to reporting by the Boston Business Journal (BBJ).
The 160,000-square-foot office building, which includes a rare on-site parking garage, marks Synergy’s latest opportunistic purchase as office values continue to fall amid high vacancy rates and shifting workplace patterns, BBJ reported.
The transaction represents the first open-market sale of the building since it opened in 1990. The seller was an affiliate of longtime Boston real estate firm H.N. Gorin.
Synergy Continues Pattern of Deep-Discount Office Acquisitions
As noted by the Boston Business Journal, Synergy has emerged as one of the most active buyers of discounted office properties in Boston since the pandemic, frequently acquiring buildings far below their previous sale prices or assessed values — then repositioning them with upgraded amenities and design improvements.
Recent Synergy acquisitions cited by BBJ include:
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99 High Street, purchased for $227 million, a price below its 2005 sale. Synergy is adding 20,000 square feet of tenant amenities and has signed 80,000 square feet of new leases since the upgrade plan began.
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101 Arch Street, acquired last year for $78 million, a sharp drop from the $122 million paid two decades earlier. Synergy has since renovated the lobby and is nearing completion of a new fitness center.
A Notable Property in a Strategic Location
Tenants at 101 Merrimac Street include Massachusetts General Hospital medical offices and law firms Martin, Magnuson, McCarthy & Kenney and Gilman, McLaughlin & Hanrahan LLP, BBJ reported. Its location within the Bulfinch Triangle, with proximity to transit, government centers, and major medical institutions, adds to its strategic appeal.
While the gap between assessed and market value is not uncommon, the Boston Business Journal notes that the deep discount in this case underscores a broader office market reset — and Synergy’s ability to capitalize on it.
Synergy has not yet detailed its renovation or repositioning plans for the newly acquired property, but if past transactions are an indication, upgrades aimed at tenant retention and new leasing activity are expected.
