This Week's Boston Deal Sheet: Synergy Extends $375M Center Plaza Loan
Synergy and BentallGreenOak signed a deal to extend their $375M loan on the Center Plaza complex in Boston's Financial District amid a "particularly challenging lending environment."
The owners said in a release they secured a four-year loan extension on the 741K SF office and retail property. They didn't disclose who provided the loan or when it was scheduled to mature.
In 2021, Commercial Observer reported that Synergy and BGO obtained a $375M refinancing loan from KKR for the property. The partnership bought the property for $365M in 2016.
Synergy and BGO explored selling the asset in 2020 but put it on pause due to the pandemic, Bloomberg reported at the time. The owners renovated the property in 2020, according to the release.
The loan extension came after they secured eight leases over the last 12 months, including 117K SF in renewals and 18K SF of new deals, bringing Central Plaza's occupancy to 90%, according to the release.
"Our ability to secure this financing in such a challenging market environment is a testament to both the strength of the partnership and of the asset," Synergy CEO David Greaney said in a statement.
"Center Plaza’s 90% occupancy rate proves our capability to execute and maintain top-tier assets even in tough conditions. We are committed to continuing our investment in this unique asset, ensuring it remains a premier destination for tenants in downtown Boston."
SALES
Crosspoint Associates and Long Wharf Capital bought the Porter Square Galleria in Cambridge for $20M, the Boston Business Journal reported. The seller was CBRE's investment arm, which had bought it in 2014 for $35.6M. The 56K SF shopping center is anchored by a Target and is 96% leased. Other tenants include Retro Fitness, Citizens Bank and Anna's Taqueria. The site also has 88 parking spaces and is adjacent to the Porter Square Red Line and Commuter Rail stops. The sale was financed with a $14.3M loan from Metro Credit Union.
LEASE
FTI Consulting renewed its 22K SF lease at 200 State St. in Boston's Financial District, landlord Carr Properties announced Tuesday. The firm will continue to occupy its space on the ninth floor of the 16-story office building, which is 94% leased. The building is adjacent to The Greenway and Faneuil Hall Marketplace. The lease renewal comes after Carr delivered building renovations, including a lobby upgrade and a fitness center addition.
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Rucker Investments doubled its footprint at Cummings Properties' 2M SF Cummings Center office complex in Beverly, taking 15K SF. The investment firm's owner, Cliff Rucker, also operates a second company out of the property, NFS Leasing, which occupies 20K SF.
CONSTRUCTION AND DEVELOPMENT
Newton-based The RMR Group filed a letter of intent for a 40-story, 600K SF project consisting of 420 residential units, a 300-room hotel and 30K SF of ground-floor retail, restaurant and amenity space at 251 Causeway St.
The site consists of three adjacent parcels: two office buildings measuring 143K SF and 56K SF and a six-unit apartment building. RMR wrote that the office buildings are mostly empty and efforts to retenant them "have not been successful," leading the group to file the redevelopment plans.
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The Davis Cos. proposed a 7.2M SF mixed-use development named the Everett Docklands Innovation District that would consist of more than 3,200 housing units and commercial and industrial space. The development would kick off with a new project with Trimount Energy, an energy storage facility that would take up 21 acres on the site.
The master plan covers 86 acres. In addition to the residential portion, it calls for 3.3M SF of office and lab, 240K SF of retail, 400K SF of manufacturing and 400K SF of industrial space at 52 Beecham St. in Everett, Banker & Tradesman first reported. The project is estimated to cost $500M.
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Nordblom Co. proposed an eight-story, 338-unit apartment building at the former Audacy radio tower in Allston, Universal Hub first reported. The site at 83 Leo Birmingham Parkway was acquired by the Burlington-based developer for $11.1M after the media conglomerate filed for Chapter 11 bankruptcy in February.
