Meritage Properties, a New York-based office property owner/manager and Connecticut-based Ivy Realty have purchased a six-story, boutique office building across from South Station at 711 Atlantic Ave. in downtown Boston for $26 million.
"We believe the leasing in that market is vibrant," said Arthur DellaSalla, Meritage managing director. "This just adds to our portfolio there and it made a lot of sense. Both buildings are brick and beam, and that’s where the tech and media tenants are preferring to be."
Constructed in the late 1800s, the 711 Atlantic Ave. building underwent a full renovation in 2003 that included updating the property while preserving its brick and beam character, Meritage said. More recent updates include replacing most of the building’s windows, lobby upgrades and façade repairs, according to the company.
Meritage said the building’s high-proï¬le storefront and wide sidewalks make its street and lower levels particularly well suited for restaurant use. The building has occupancy levels of more than 90 percent, according to Meritage.
Boston-based CB Richard Ellis – N.E. Partners LP represented the seller and procured the buyer.
Meritage also owns Tower Point @ A Street, a 153,812-square-foot, Class A office building at the corner of A and Wormwood streets in South Boston.
711 Atlantic marks the third joint property acquisition by Meritage and Ivy, following their recent purchase of Shady Grove Plaza in Rockville, Md. Meritage and Ivy will co-asset manage the investment, and property management for 711 will be handled by Meritage in partnership with Lincoln Property Company. Leasing will be handled by CB Richard Ellis.
Headquartered in Scarsdale, N.Y., Meritage Properties is an owner-operator of office properties from Boston to Washington, with interests in 3 million square feet of office space and 500 residential units valued at more than $750 million. Ivy Realty is a Greenwich, Conn.-based real estate investment, development and management company with a portfolio exceeding 5.5 million square feet of office, industrial, multifamily and retail properties.
