The Seaport District in Boston has become one of the most dynamic submarkets and increasingly the location of choice for Boston’s innovative companies. In October 2013 TDC acquired a 155,000 square foot, Class B, brick and beam office property in the Seaport District for $244 per square foot. The property is adjacent to Channel Center, a 1.1 million square foot development that includes State Street’s new 521,000 SF operations headquarters.
Originally constructed in 1877 as a manufacturing building, the property underwent an extensive redevelopment in 1988 and had been further upgraded by the prior owner, who invested over $9.2 million in base building and interior improvements, including lobby and common area renovations, first generation tenant improvements, base building work, roof replacement and the addition of new amenities such as a fitness center with locker rooms and shuttle service for tenants to commute to work via public transportation.
The Davis Companies completed aesthetic and base building upgrades to take further advantage of tenant relocations and the high demand for brick and beam office buildings in the Seaport district.
Value Creation Strategy
The Davis Companies successfully leased up the property from 74% at acquisition to nearly 100%, as well as brought expiring leases to market rents. The leasing activity occurred at a faster pace and at higher rents than initially anticipated. The property was sold to an institutional buyer in October 2015.