Boston — After more than three years of ownership, Shorenstein Properties has sold Center Plaza, a 741,200-square-foot mixed-use asset in downtown Boston.
Synergy Investments, a Boston-based real estate owner and investor, and GreenOak, an international real estate investment and lending firm, have jointly purchased Center Plaza for $365 million.
Developed by Beacon Capital in phases in the late 1960s and early 1970s, Center Plaza consists of three interconnected, nine-story buildings comprising more than 600,000 square feet of office space, 77,000 square feet of street-level retail and a below-grade parking garage with 575 spaces.
Situated at 1-3 Center Plaza, the retail and office development features nearly 875 feet of frontage along Cambridge Street. Center Plaza, which is currently 60 percent leased to 31 tenants, sits at the entrance to Boston’s Beacon Hill neighborhood. The project is situated across the street from Boston’s City Hall.
Shorenstein Properties purchased Center Plaza in January 2014 for $307 million, according to the Boston Business Journal. The media outlet also reported that Shorenstein’s planned $25 million overhaul of Center Plaza never took shape.
The NGKF Capital Markets Boston team led by Robert Griffin, Edward Maher, Matthew Pullen and James Tribble represented Shorenstein Properties, which sold the asset through a real estate investment fund.
“Center Plaza represents one of Boston’s largest mixed-use complexes, offering critical mass and a commanding presence in the heart of the city,” says Maher. “Additionally, it features one of the most profitable parking garages in the city, solidifying its status as a generational investment with substantial upside.”
Center Plaza is situated in close proximity to the newly renovated MBTA (Massachusetts Bay Transportation Authority) Government Center station, as well as local institutions including the John F. Kennedy Federal Building and Suffolk University. The new ownership’s plans for Center Plaza were not disclosed.
Synergy Investments is one of the largest and most active landlords in Boston with a portfolio that spans 3 million square feet, housing more than 350 businesses and organizations.
Since 2011, GreenOak has raised $5.7 billion of equity to invest in various funds, targeted strategies and assets. The firm employs 90 professionals in eight offices around the world, including London, New York, Madrid, Milan, Los Angeles, Seoul and Tokyo.
Founded in 1924 with offices in San Francisco and New York, Shorenstein Properties is a privately owned real estate firm that owns and manages office properties. Starting in 1992, Shorenstein has sponsored 11 closed-end investment funds with total equity commitments of $7.9 billion, of which Shorenstein committed $648.5 million. These funds have invested in properties totaling 63.2 million square feet in transactions with a gross investment value exceeding $14.9 billion.
— John Nelson