Clarion Partners has acquired a six-building office portfolio in the Fort Point section of Boston from a partnership between Angelo, Gordon & Co and Newton, Massachusetts-based developer National Development & Investment. Although the New York-based real estate investment manager declined to disclose the purchase price, data provider Real Capital Analytics reports it as roughly $105 million.
The Fort Point portfolio comprises six turn-of-the-century ‘brick and beam’ buildings located in Boston’s Seaport District, approximately a five-minute walk from Boston’s South Station. Those buildings total 407,458 square feet of office space and are 96 percent occupied. The portfolio also includes an adjacent site for future development.
“This acquisition provides our client’s portfolio with a significant position in Boston’s fastest growing submarket,” said Gary Rufrano, a senior vice president at Clarion and the lead acquisitions officer on the transaction. “The portfolio is well leased to a diverse tenant base, and we believe there is significant opportunity to add value to the portfolio by capturing the growth in the Seaport and by bringing rents up to market levels.”
The Seaport District currently is Boston’s fastest growing office submarket, thanks to public and private investments such as the Boston Convention & Exhibition Center, the Mass Pike Extension and a new rapid transit system with several stops in the District. Fort Point is a thriving mixed-use area with a continuously developing ‘24/7 live, work, play’ environment that is highly attractive to employees of the technology and creative industries.
This transaction is Clarion’s second major investment in the Seaport District, the first being a 200-unit multifamily development project at 411 D Street that currently is under construction in partnership with Cresset Group.