ARA and Norges Bank acquire office tower in Boston’s Seaport District
American Realty Advisors has entered into a joint-venture partnership with an affiliate of Norges Bank Real Estate Management to acquire 121 Seaport, a class A office property in the Seaport submarket of Boston.
The seller was Skanska.
A sales price was not disclose; however it is estimated to be $455 million.
“Partnering with Norges Bank to acquire an asset of this caliber in a key urban market will allow us to drive increased cash-flow and returns for both Norges Bank stakeholders and ARA investors,” said Austin Maddux, executive vice president, deputy portfolio manager at American Realty Advisors. “121 Seaport is a top-tier office asset with long-term leases in an irreplaceable location, which we view as a generational investment and the foundation for our new relationship and future joint efforts with Norges Bank.”
The newly constructed 17-story tower features 400,342 square feet of rentable space.
“This investment is well-aligned with our core strategy to target modern, sustainable office properties that are highly sought after by tenants and positioned to perform over time. Its flexible layout with a column-free design and highly sustainable attributes contribute to an 85 percent efficiency factor that enables companies to maximize their workspace and expand their employee base,” said David Willett, senior director, investment group at ARA.
Strategically positioned along Harbor Way within Seaport Square, 121 Seaport is surrounded by 7.6 million square feet and 23 acres of mixed-use development, including Amazon’s new flagship office, which is set to be completed in 2021, and will accommodate over 2,000 employees. One block from 121 Seaport is the $650 million One Seaport Square complex featuring over 800 apartment units with ample shopping, dining, and entertainment options. The Seaport Common is also a unique component to the property. Located directly between 121 Seaport and the Boston Harbor waterfront, Seaport Common is an urban green space and community gathering place, which regularly hosts farmer’s markets, fitness classes, and local art and entertainment events.
Boston’s Seaport District is the city’s top destination for tech and innovation firms as well as established Fortune 500 companies that include BCG, PwC, GE, and MassMutual. Surrounded by over 70 colleges and universities in the area, the city has a highly educated workforce retaining over 40 percent of graduates. 121 Seaport also offers convenient access to Downtown Boston and the Logan International Airport through the Silver Line subway, just steps from the property.
“Boston, and specifically the Seaport, is thriving and makes for a desirable investment market due to its strong concentration of med, ed, tech, and financial services industries. The region’s unemployment rate is consistently below the national average and has driven office rents to experience a 25 percent increase in the last five years followed by declining vacancy rates for class A office space,” added Willett.
Other notable amenities of the property include three outdoor terraces, a three-level below-grade parking garage with the ability to accommodate 325 vehicles, a 24/7 concierge, fitness center, and lower-level retail including a day-care center set to open in early 2019.
121 Seaport is located at 121 Seaport Boulevard. The seller, Skanska USA, was represented by Robert Griffin, Edward Maher, Matthew Pullen, and James Tribble at Newmark Knight Frank.
