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- Investment Vehicle
- BCSP II
- 1,785,000 sq ft
A skyline-sized opportunity
The John Hancock Tower is the tallest building in Boston. It’s a glass-glazed, 60-story icon that defines the Boston skyline. So when this property came up for sale in a competitive bid, we had our sights set on a sizeable acquisition.
The complex includes nearly 3 million square feet in the heart of Boston’s Back Bay:
Hancock Tower, designed by I.M. Pei (60-story, 1.7 million sf, built 1973)
Berkeley Building (757,000 sf, built 1947, renovated 1994)
Brown Building (427,000 sf, built 1923, renovated 1984)
Parking garage (8-story, 2,000 spaces)
Pulling together a bold bid, quickly
Knowing that we’d need to move fast, we lined up the right capital and investors and then focused on what matters most in these situations: the seller’s needs.
John Hancock’s priority was getting a higher price upfront, so we structured a deal to make that happen. To balance our own risk, we proposed that they remain a tenant and lease the space from us for the next five years. This allowed us to take over ownership, without worrying about their near-term vacancy.
In less than two weeks from start to finish, we closed the deal.
Leaving a lasting impression
This rapid closing process marked the start of a three-year endeavor to transform the property into a thriving, sustainable workplace. In our sweeping effort, we:
Enticed high-profile firms by repositioning the complex from a corporate property to a multi-tenant building. We retained the existing tenants and leased almost a million square feet to some of the most prestigious firms in Boston, commanding the highest rental rates in the area at the time. This ensured a 96% occupancy for at least three years.
Reduced operating costs by $2.7 million per year. Our $3 million investment in environmental systems alone was able to cut energy costs by a third.
Earned an EPA Environmental Merit Award, which honors those who make outstanding contributions to a community’s environment. The property also earned its first ENERGY STAR® ratings in 2005 and 2006.
Improved the 2,000-space garage by investing $9.5 million to increase its use and parking revenue. We also negotiated with the transportation authority to extend air rights for the garage with fixed lease payments through 2029. This helped ensure that ownership of the garage was stable for the coming years, giving future building owners peace of mind.
Repositioned, renovated, and full of new tenants, we sold the John Hancock Tower Portfolio at a market record price - a proud accomplishment for our team.