Starwood REIT Buys 911K SF Downtown Boston Tower For $614M
A Starwood Capital Group-managed real estate income trust has laid down $614.3M to add a 38-story downtown Boston tower to its portfolio.
Starwood bought a majority stake in the ground lease at 60 State St., it disclosed in a filing with the Securities and Exchange Commission. The REIT and an undisclosed joint venture partner acquired the property from J.P. Morgan Asset Management and Oxford Properties Group, according to a release from Newmark Knight Frank, which brokered the transaction.
Three floors of the more than 911K SF of office and retail building are occupied by a new Samuel Adams Tap Room, and the State Room event space inhabits the 33rd and 34th floors. The tower also boasts law firm WilmerHale, asset manager BlackRock and 28 others as tenants. The Druker Co. owns the land under the building, Commercial Property Executive previously reported.
The sale comes as business has slowed for Boston and around the country. In an effort to help combat the spread of the novel coronavirus Mayor Marty Walsh last week ordered that Boston construction projects wind down by March 23.
Massachusetts Gov. Charlie Baker on Monday also issued a two-week stay-at-home advisory and ordered the closure of nonessential businesses.
Still, the commercial real estate market is soldiering on, with the Starwood REIT’s acquisition serving as Boston’s latest example. The $674/SF sale for the tower, which is 91% occupied, was finalized Friday.
Blackstone sold the tower and three other properties for a combined $2.1B in 2014.
