Photo courtesy of Newmark

In another example of the downward reset in Boston office building values, Allston-based City Realty acquired a Leather District property for $11 million, or just over $150 per square foot.

The seller, Greenwich, Connecticut-based Brickman, paid $20.65 million for the 186 Lincoln St. property in 2015.

City Realty said it plans to modernize the 73,000-square-foot building, which was originally completed in 1899, with new tenant amenities including fitness and locker rooms and a game room.

Tenants include CozyKin, SmartSense by Digi, Full Contact Advertising, and Mightier, according to brokerage Newmark which represented the seller and has been named leasing agent. Spaces ranging from 1,500 to 30,000 square feet are available for lease.

Mechanics Cooperative Bank provided $10.15 million in mortgage financing.

City Realty is seeking to acquire and stabilize urban commercial properties by updating aging office buildings, the developer said in an announcement about the acquisition. 

Several investment sales transactions in recent months have reflected the class B office market’s struggles to retain tenants in the post-COVID environment.

The class B and C office market in Boston’s central business district had a 24.9 percent availability rate and a 20.6 percent vacancy rate at the end of the third quarter, according to a recent CBRE report. Since the beginning of the year, the market has nearly 230,000 square feet of negative absorption.

The 33-41 West St. property in Downtown Crossing sold for 74 percent below its previous transaction in 2016, while One Liberty Square in the Financial District traded in September for 17 percent below its 2013 sales price.