Synergy Buying Boston\u2019s 2 Oliver St. from AEW, Saracen; Deal Listed by C&W Tops $50M<\/p>\n
Joe Clements – The Real Reporter<\/p>\n
BOSTON\u2014In what hardly makes for a great surprise\u2014but is certainly news for the city\u2019s active CRE sales market\u2014 Synergy Investments has reportedly placed 2 Oliver St. under agreement after a spirited competition involving both local and national suitors. The 11-story, 223,000-sf office building is an exclusive listing of Cushman & Wakefield on behalf of a local partnership between AEW Capital and Saracen Investments. Sources spoken to peg pricing in excess of $50 million, exceeding industry projections made when put up for sale to open the fourth quarter.<\/p>\n
Efforts to contact Synergy principals and C&W brokers by press deadline were unsuccessful, but one source outlines the firm\u2019s intentions to acquire real estate on Oliver Street. The current ownership took control of 2 Oliver St. after the<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
prior entity was done in by the 2008 recession and other difficulties while pursuing an unfulfilled strategy that AEW and Saracen have implemented to make 2 Oliver St. more attractive to tenants. Incorporating a new entranceway on one part of the building and other capital improvements were among the reasons C&W provided optimism early on that the asset would be well-received despite its prior struggles. As appears to be the case involving Synergy\u2019s dogged pursuit of 2 Oliver St., market watchers seemingly bought into the notion that Boston\u2019s Financial District is poising a feisty comeback after being among the region\u2019s hardest hit office markets, stunted first by the recession and then losing out on several major commitments to the vibrant Back Bay and Seaport Districts. Now, however, big floorplates and cost-effective low-rise space is suddenly in vogue, as evidenced by the Iron Mountain lease at venerable One Federal St. and Brown Brothers Harriman at 50 PO Square. The 2 Oliver St. floorplates are in the 20,000 sf range, not overly huge but bigger than most Class B office buildings in the Hub.<\/p>\n
As to the buyer, Synergy would seem a logical choice for numerous reasons, including the firm\u2019s penchant for value-add office buildings in Boston, preferably near public transportation. Two Oliver St. is around the corner from two Blue Line stations and an Orange Line stop connecting to the remaining colors, the Green and Red lines. Sources say the current status is that a purchase-and-sales agreement has been inked, pushing the process into the due diligence phase that supposedly is on a tight time frame. One observer says it appears there is an effort to have 2 Oliver St. transferred by the time the clock strikes midnight on 2012, a schedule other brokerage houses are said to be pursuing on their deals as well. As to the pricing, one observer maintains that the opportunity was recognized by the bidders. \u201cI think it\u2019s the best value you are going to find in the Financial District,\u201d says that industry expert.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/div><\/div>"