33-41 West St. in Downtown Crossing recently traded for $4.1 million, down from the $16 million it fetched just a few years ago. Banker & Tradesman file photo
A Downtown Crossing office building traded for a 74 percent discount from its previous price in 2016, as a Boston investor snapped up the 38,000-square-foot building for just under $4.1 million.
The sale of 33-41 West St. illustrates the downturn in the class B office market, which have been hit hardest by rising vacancies since the pandemic. The seller, Bay Management Corp. of New York, paid $16 million, or $472 per square foot, for the property in 2016. The latest price equates to $107 per square foot.
Jeanne D’Arc Credit Union provided $2.9 million in mortgage financing for the Sept. 29 acquisition by 33 West LLC of Boston, which is managed by Mai Luo.
The building is 52-percent occupied, Luo said in an email.
Built in 1899, the building traded for $7.2 million in 2008.
Declining occupancy and lingering uncertainty over future office demand led to a prolonged drought in downtown office investment sales for most of 2022 and 2023, while recent transactions reflect a reset of pricing.
In August, Azora Exan Capital bought 7 Post Office Square for $41 million, or $3 million more than seller Nuveen paid for the property in 2016. Boston-based Synergy Investments bought One Liberty Square for $45 million, a 17 percent discount from its 2013 sales price, in early September.
