Image courtesy of Newmark and Boston Architectural Photographers

German investor KanAm Grund has acquired a 10-story medical office building in Boston’s Financial District as the first U.S. investment in a real estate fund that seeks growth opportunities in leading global cities.

147 Milk St., a 52,337-square-foot building leased to AtriusHealth/Harvard Vanguard in Boston’s Financial District, sold for $48 million.

The property previously traded for $33.25 million in 2016.

KanAm’s Leading Cities Invest fund owns 35 properties in 10 countries, seeking acquisitions in  office, retail and hotel properties located in core urban locations. The firm said Boston is a “must have” investment market because of its financial and innovation economy and transportation network.

“The office market is characterized by high market liquidity, high demand for space, high prime rent levels, moderate vacancy rates and a moderate construction pipeline,” KanAm Grund said in an announcement.

Newmark Knight Frank’s capital markets team represented the seller, BentallGreenOak, and procured the buyer.

“The market’s response was tremendous to this unique opportunity, being one of Boston’s few urban medical office buildings and a rare triple-net-leased downtown asset with credit tenancy,” Newmark Senior Managing Director Michael Greeley said in a statement.

German Fund Makes First U.S. Investment in 147 Milk St.

by Steve Adams time to read: 1 min