Canadian Imperial Bank of Commerce (CIBC) has financed DLJ Real Estate Capital Partners’ $77.5m purchase of 18 Tremont Street in Boston, Massachusetts with a $55m loan.
The New York-based private equity fund acquired the 12-story, 202,000 sq ft office and retail building from Equus Capital of Yardley, Pennsylvania, which had purchased the property in 2007 for $49.5m with $41m in financing from Bank of America.
The building is adjacent to the King’s Chapel Cemetery, near the Massachusetts State House, Boston’s City Hall, Government Center and a number of planned development and renovation projects, including improvements to the Government Center MBTA public transit station.
Such redevelopment activity has attracted investors to older office buildings in the neighborhood. DLJ reportedly plans to renovate the building, which dates back to 1915 but was renovated about a decade ago.
Among the planned improvements, DLJ managing director Phil Tager told the Boston Business Journal that the company may fill in the open courtyards by adding a retail corridor.
“We like to focus on emerging markets or somewhere we feel like there’s a major trend or where we think there’s resurgency happening, which we think is the case with downtown Boston,” he said.