JLL arranges $281 million C-PACE loan for Millennium Residences and $575 million securitized loan for office portion of downtown Boston project
BOSTON — Millennium Partners’ Winthrop Center has secured a combined $856 million in financing for its residential and office components, according to JLL’s Capital Markets group.
The financing includes a $281 million, 20-year C-PACE loan for The Millennium Residences and a $575 million, five-year securitized loan for The Offices at Winthrop Center. JLL advised Millennium Partners on both transactions.
Nuveen Green Capital provided the C-PACE financing for the residential inventory, while Morgan Stanley and Barclays provided the securitized financing for the office component.
The $1.3 billion mixed-use development at 115 Federal St. in downtown Boston includes approximately 823,856 square feet of Class A office space and 317 luxury residential units. The 691-foot tower is the tallest building in Boston’s downtown core.
The office portion of the project has been certified under the Passive House standard and is recognized as the world’s largest Passive House office building, according to JLL.
The Millennium Residences occupy approximately 510,000 square feet and include luxury residences, amenities and services, with views of the Boston skyline, Charles River and Boston Harbor.
“This financing is a key milestone that reflects the confidence that leading institutional partners continue to place in Winthrop Center,” said Christopher M. Jeffries, founder of Millennium Partners. “Winthrop Center was conceived as a landmark building for Boston with significance well beyond the city, setting a global standard for sustainable mixed-use development. We are proud to see that vision recognized from our financial partners.”
JLL’s Debt Advisory team representing Millennium Partners was led by Executive Managing Director Riaz Cassum, Managing Director Andrew Gray, Vice President Robyn King and Analyst David Mega.
Cassum said the financing reflected investor interest in the project’s sponsorship, location and quality.
“This transaction reflects the convergence of exceptional sponsorship, irreplaceable product and structural market dynamics that institutional lenders seek in today’s environment,” said Cassum. “Millennium Partners has an unmatched track record in Boston’s luxury residential market. Winthrop Center represents the most evolved living and work experience the sponsor has ever created, combining world-class sustainability, five-star services, and extraordinary amenities for both residents and commercial occupants.”
The $281 million C-PACE financing is the largest such transaction in New England, according to Nuveen Green Capital.
“It was a pleasure to partner with JLL and Millennium Partners to capitalize this landmark project, which marks the largest C-PACE-financed transaction in New England,” said Mike Doty, senior director of originations at Nuveen Green Capital. “Through C-PACE’s cost-effective financing, the sponsor was able to recapitalize the residences portion of the property alongside $575 million in financing from Morgan Stanley and Barclays for the offices, delivering an innovative capital structure that adds long-term value, while helping to ensure the success of The Millennium Residences and The Offices at Winthrop Center.”
Winthrop Center is located near South Station and within Boston’s downtown office district, with access to the city’s retail, dining and entertainment areas.
The financing comes as institutional lenders continue to target high-quality commercial real estate assets with established sponsorship and distinctive locations, according to JLL.
