Office Building Near TD Garden Trades For 40% Less Than Its 2021 Sale
The Boston office market closed out 2023 with another steeply discounted sale.
Rhino Capital Advisors LLC acquired an unoccupied 56K SF office building at 110 Canal St. on Dec. 29 for $14.6M, according to public records. The sellers, Alcion Ventures and Quaker Lane Capital, had acquired the seven-story building in 2021 for $24M, the Boston Business Journal reported.
The joint venture had previously described its 2021 acquisition as being bought "at a discount due to pandemic distress," according to Quaker Lane's website.
The sellers and buyer didn't respond to Bisnow's request for comment.
The partnership completed renovations on the property in December 2022 that were planned to reposition it for new tenants after architecture firm CBT vacated in 2021. The building sits near TD Garden in the Bulfinch Triangle neighborhood.
Rhino Capital Advisors' portfolio is made up of a mix of industrial, data center and residential properties, with this deal marking its first office property.
As of now, the plans for the building are unknown but it does fall in the city's target area for its downtown residential conversion incentive program. The program rolled out last fall to incentivize landlords to convert downtown office buildings into more housing through tax breaks.
The push for conversion comes as the Boston office market saw almost 1.5M SF of occupancy losses in the third quarter, according to Colliers, causing the total vacancy to reach nearly 20%.
Last year, a handful of office building sales occurred at steep discounts. In October, a downtown office building at 33-41 West St. sold for 74% less than what the previous owner paid in 2016. A month prior, Synergy Investments acquired One Liberty Square near Faneuil Hall from Clarion Partners for $45M, a 17% discount.
