A partnership between AREA Property Partners and Ivanhoé Cambridge has sold a 33-story office tower in Boston for $365.8 million.
According to an announcement by AREA, the firm’s AREA Properties Value Enhancement Fund IV and Montreal-based Ivanhoé Cambridge, the real estate subsidiary of Caisse de dépôt et placement du Québec, sold 33 Arch Street to TIAA-CREF. Data provider Real Capital Analytics lists the closing price on the 600,000-square-foot property at roughly $610 per square foot.
Steven Wolf, a partner at AREA, said in a statement that the New York-based real estate investment firm sold the asset because it had “successfully executed [its] full lifecycle plan for the property.” Likewise, Ivanhoé Cambridge's executive vice president Adam Adamakakis said the partners “accomplished what we set out to do in 33 Arch Street.”
Completed in 2004, 33 Arch Street is comprised of 600,000 square feet of office space and an 821-space parking garage. The property is located in Boston’s Financial District and currently is 90 percent occupied. The building has experienced a surge in leasing activity in the past year, with 85,000 square feet of new leases raising the occupancy rate from 80 percent in 2010. Tenants include Digitas, the US Securities and Exchange Commission and DLA Piper Rudnick.
“Boston is an enduring market and a centre for education, science, technology, finance and the arts,” said Philip McAndrews, head of global real estate transactions and joint ventures at TIAA-CREF, in a statement. “33 Arch Street enhances our Boston office portfolio and highlights our commitment to actively engage in targeted, gateway cities.” Eastdil Secured represented TIAA-CREF in the purchase.