Boston-based real estate private equity firm Rockpoint Group has paid $327m for twin high-rise office towers at 75-101 Federal Street in The Hub, assuming with the record purchase a $210m securitized first mortgage loan from Morgan Stanley.
The sale marks the largest office deal in downtown Boston so far this year, at a nearly $70m markup from the $260m which the seller, a joint venture led by Chicago-based Pearlmark, paid for the property in 2007.
The 10-year $210m loan backing the property, part of MS 2007-IQ13 securitization, was issued in February of 2007 and thus is part of the wave of more than $300bn of loans up for maturity through 2017. The interest-only loan carries a 5.7% fixed rate, according to data pooled by Real Capital Analytics.
The 820,000 sq ft property is currently 84% leased to tenants including HQ Global Workplaces, Wells Fargo, Sherin & Lodgen, Willis of Massachusetts and Ironshore Insurance. The Pearlmark venture recently infused more than $7m in capital improvements that included upgrades to its lobby, façade, garage, common area, HVAC, roof and elevator.
Since its inception in 2003, Rockpoint has sponsored seven commingled funds and four co-investment vehicles, raising more than $9bn in capital and investing or committing approximately $7bn across more than 200 transactions.