Boston-based Beacon Capital Partners has sold 10-20 Channel Center in Boston’s Fort Point for $100 million, just two years after acquiring the 251,000-square-foot office complex for $62 million.

Chicago-based private equity firm Callahan Capital Properties is the new owner. Callahan Capital owns an 11-million-square-foot portfolio of office properties in New York, Chicago, Seattle and Denver, according to its website. A spokesman for Callahan’s investment partner Ivanhoe Cambridge, the investment arm of Canadian pension fund manager Caisse de depot et placement du Quebec, declined to comment.

Beacon Capital had acquired 10-20 Channel Center in June 2013 from Southport, Conn.-based CV Properties.

The neighborhood off A Street has emerged as an offshoot of the Fort Point office market. State Street Corp.’s construction of its 500,000-square-foot One Channel Center offices next door opened in June 2014, bringing more pedestrian activity and retailers to the area.

The big windfall mirrors the steep increase in office rents in Fort Point in the past two years and investors’ confidence in continuing rent growth, said Matt Pullen, an executive director at Cushman & Wakefield. Buildings where office space rented in the high $20 per square foot range in 2013 are now finding new tenants in the mid-$40s as the neighborhood has become popular among tech companies. Cloud computing company LogMeIn is adding 450 employees as it expands by next year into a 117,000-square-foot renovated office building at 327-335 Summer St., across the street from its current offices, which will remain open.

The rebound suggests a possible big payoff for Boston-based Berkeley Investments, which is selling a five-building office and residential portfolio in Fort Point. Cushman & Wakefield is advising Berkeley on the sale, which includes 22 Boston Wharf Road, where Berkeley is proposing a two-story addition on top of the eight-story office and parking garage structure that would include 50,000 square feet of collaborative office space.

 

Beacon Capital Makes $38M In 2 Years On Fort Point Property

by Steve Adams time to read: 1 min
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