San Francisco-based Shorenstein Properties has purchased Center Plaza, a mixed-use office property in Boston, from The Blackstone Group’s Equity Office Property Trust for $307 million. Shorenstein acquired the complex on behalf of its tenth fund, Shorenstein Realty Investors X.
Developed by Boston-based Beacon Capital Partners in phases in the late 1960s and early 1970s, the property is comprised of three nine-story buildings totaling 620,000 square feet of office, 77,000 square feet of retail, 19,000 square feet of storage space and a 575-car garage. Center Plaza was sold by Beacon to Sam Zell’s Equity Office Property Trust, and Blackstone acquired the property through its $23 billion-plus leveraged buyout of Equity Office in 2007. Blackstone began divesting the assets in its massive office portfolio in July 2012.
The property currently is 94 percent leased to such tenants as the Federal Bureau of Investigation, the Massachusetts Trial Court, the Massachusetts Property Insurance Underwriting Association and Hachette Book Group.
“This is an excellent property to own in a market with strong appeal to a wide range of tenants, including those looking for creative, open-floor environments in urban settings close to transit and amenities,” said Douglas Shorenstein, chairman and chief executive of Shorenstein Properties, in a statement. “We believe this property is well positioned to benefit from our ability to add value over time through hands-on management and leasing expertise.”
Shorenstein Realty Investors X closed on $1.23 billion in equity in March 2011. The opportunistic vehicle focuses predominantly on acquiring office properties in major US markets, as well as on development and equity and debt recapitalizations. Shorenstein has made 11 investments thus far on behalf of the fund, including Center Plaza. Most recently, the fund made news in July for its partnership with Deutsche Asset & Wealth Management to capitalize the development of two office buildings in Austin, Texas.