Photo courtesy of DivcoWest
DivcoWest made its second big Boston office acquisition of 2025 with the $125 million purchase of a 245,000 square-foot Back Bay tower.
The 399 Boylston St. property was placed on the market last spring by its longtime owner, Blackstone-owned EQ Office.
EQ Office weathered the post-pandemic office slump and the 2017 departure of the property’s largest tenant, Natixis Global Asset Management, and successfully brought its occupancy back up to over 90 percent. JLL will continue as leasing agent under the new ownership.
The building was completed in 1983. EQ Office acquired it in 2014 for $117 million. The latest transaction equates to a price of $510 per square foot.
In a statement, DivcoWest Head of Boston Acquisitions Michael Falvey said the latest transaction reflects its confidence in Boston’s status as “one of the most resilient and desirable office markets in the country.”
DivcoWest acquired the One Lincoln office tower for $400 million through foreclosure last spring. The company recently completed $100 million in a wide-ranging amenities package designed to attract companies to join anchor tenant HarbourVest.
Similarly, at 399 Boylston St., EQ Office completed $35 million in capital improvements, including a fitness center, yoga studio, bike storage, locker rooms, showers and a salon.
Newmark represented the seller.
Back Bay has the lowest vacancy rate of Boston’s major office submarkets at 15.2 percent, according to a recent CBRE report.
“The acquisition of 399 Boylston by DivcoWest underscores strong investor conviction in the strength of the Back Bay submarket,” Newmark Executive Vice Chairman Edward Maher said in a statement.
