DivcoWest plans to purchase the high-profile Brickman portfolio of four properties in Boston’s Seaport District for upward of $105 million, according to an industry source familiar with the pending deal.
San Francisco-based DivcoWest is making a play for the entire 362,000-square-foot office portfolio, which is located in one of Boston’s hottest real estate submarkets.
Brickman bought the properties for approximately $91.4 million. The buildings up for sale are 300 A St., also known as Harbor Corporate Center; 313 and 330 Congress St.; and 51 Sleeper St.
During the marketing phase, market chatter said the price would be around $105 million, but now market sources indicate that the contract price is actually higher, but since the contract is still being negotiated, the final price remains unclear. One industry source that asked for anonymity said the price is "pretty strong for the market," but added that "it’ll be a good data point for investors and [firms trying to sell properties] going forward."
There are also two commercial mortgage-backed securities loans that need to be assumed, one for $17 million and one for $18 million. But market sources say that’s just paperwork.
New York’s Brickman purchased 313 and 330 Congress St. for $22.7 million in April of 2006 from New Congress Associates LLC, an affiliate of Edwards Day Property Investments. They are both six-story, brick-and-beam office buildings with 70,217 square feet and 35,811 square feet of space, respectively.
The firm bought 51 Sleeper St. from the Mayo Group in an off-market deal for $45 million in 2007. The 150,000-square-foot building, built in 1929, is a concrete and steel structure, offering a more institutional quality product than the brick and beam buildings that comprise the majority of the Seaport market.
In 2006, Brickman acquired 300 A St., also known as Harbor Corporate Center, from the Archon Group for $23.7 million. The 106,000-square-foot property is home to ElkusManfredi Architects, among other tenants.
Sources at Holliday Fenoglio Fowler (HFF), which marketed the properties for Brickman, declined to comment on particulars of the portfolio transaction. But a company representative said the firm is seeing increased investor interest in the Seaport.
"The Seaport is at the forefront of almost every investor’s mind," said Benjamin Sayles, a director with HFF. "With the future employment generated by Vertex and State Street and the significant amount of residential development, the area is clearly going to be one of Boston’s hottest neighborhoods for years to come."
