owners of 1-3 Center Plaza in Government Center
Yet another massive story is making headlines as the
city of Boston continues to jolt forward with a plethora of
activity already making the real estate industry buzz in 2014. 1-3
Center Plaza in Government Center is a sprawling development that
totals a massive 717,128 square feet. This facility has just been
sold by Blackstone Groups Equity Office Properties Trust to
Shorenstein Properties, a private real estate firm based out of San
Francisco and New York, for a staggering $307 Million.
The mixed-use property was developed by Beacon Capital
back in the 1960s and into the early 1970s and includes three
nine-story buildings. Of this, 620,000 square feet is office space,
while 77,000 square feet is used for retail, and another 19,000
square feet is dedicated to storage space. In addition, the
property also boasts a 575-car parking garage; crucial to this busy
area of the Hub.
The property was acquired on behalf of Shorensteins
10th fund known as Shorenstein Realty Investors Ten, L.P. that was
formed back in 2010 with $1.2 Billion backing it. Of the $307
Million sales figure, a $207 Million mortgage was taken out for the
1-3 Center Plaza purchase via HSBC Bank.
Blackstone continues to unload some of their major
assets lately. It was not long ago when they sold Wellesley Office
Park for $237 Million to Manulife Financial Corp., the New England
Executive Park in Burlington for $216 Million to Charles River
Investors, 25 Mall Road in Burlington for $77.1 Million to TA
Associates, and Riverside Center at 275 Grove Street in Newton for
$197 Million to a firm known as Hines. Those at Blackstone still,
however, have within their portfolio the local properties of 60
State Street, 100 Summer Street, 500 Boylston Street, 125
Cambridgepark Drive, and 150 Cambridgepark Drive.
Terms of this 1-3 Center Plaza deal were not disclosed by the
participants although they are listed in public records. It still
remains to be seen what Shorenstein plans on doing with this
significant piece of Government Center real estate. Only time will
tell what their vision is for the site, but what is certainly
factual is that the real estate market continues to be as active as
ever after the leaf has been turned over to 2014.
More Information: Boston Business
Journal