Related Beal announced today the acquisition of The Block on Congress from Fidelity Investments by the Related Real Estate Recovery Fund. Related Beal will lead the repositioning and serve as property manager of The Block. The Block on Congress is a five-building portfolio consisting of nearly 343,000 square feet of office and retail space and sits on more than one acre of land. The properties include: 82 Devonshire Street/35 Congress Street, 68 Devonshire Street, 19 Congress Street, 15 Congress Street and 54 Devonshire Street.
“We are excited to be acquiring this special grouping of buildings in Boston’s downtown,” said Justin Metz, managing principal of Related Fund Management. “The iconic nature of the properties’ location, their great bones and architecture and favorable market trends made this an ideal investment for the fund.”
“Rarely do you have the opportunity to reposition and reinvent an entire city block, especially one in the heart of downtown Boston,” said Stephen Faber, executive vice president of Related Beal. “As part of our plans for 82 Devonshire Street and 35 Congress Street, we will extensively renovate and reposition these buildings, creating dynamic office space with 38,000 square feet of marquee, desirable retail space available for delivery in late 2015 or early 2016.”
The Block is located at the top of Post Office Square reaching back towards the Washington / State Street retail corridor, at the epicenter of Boston’s downtown. This ideal location provides outstanding commuter access and the ability to integrate a variety of uses into the property, activating a long dormant street level.
“With a great number of storefronts lining the streets around the entire block, Related Beal has an unprecedented opportunity to create an exciting and distinctive destination that will be unique in the city of Boston, not just downtown,” said Jeremy Grossman of CBRE, who is spearheading the retail leasing efforts for Related Beal. “There is a compelling opportunity to bring traditional and non-traditional dining and retail opportunities to this very active part of the city.”
The New England division of global commercial real estate firm CBRE was appointed to facilitate the sale for Fidelity. The CBRE capital markets sales team was led by Chris Angelone, Andy Hoar and Carlos Febres-Mazzei.
"The Block on Congress is one of the premier locations in Boston’s downtown that is rooted in rich history," said Chris Angelone, an executive vice president/partner at CBRE. "Related Beal will be a great steward for this collection of properties and we look forward to the execution of a unique strategy to activate this block of the CBD."
“This was a complex execution with a multitude of potential business plans,” said Febres-Mazzei, senior vice president of CBRE’s ebt & Structured Finance. “We were thrilled to play a key role in identifying some of the options and selecting a buyer with a creative approach to the real estate.”
About Related Beal:
Related Beal is a fully-integrated real estate firm focused on development and investment opportunities in Boston and the surrounding region. Related Beal leverages Related Companies’ international real estate platform with expertise across all assets classes and The Beal Companies’ storied local experience in life sciences, commercial and residential development, property management and investment. Related Beal has developed, and is undertaking the development, of some of the most recognized buildings in the area including The Clarendon and One Back Bay, Lovejoy Wharf and Converse’s U.S. headquarters. For more information on Related Beal, please visit www.relatedbeal.com.
About the Related Real Estate Recovery Fund:
The Related Real Estate Recovery Fund closed in January 2012 after raising $825 million in equity commitments – exceeding its $750 million target. It was among the largest U.S. real estate vehicles raised in 2012. Fund investments include diverse properties across the real estate spectrum such as: 100 Arlington Street and Lovejoy Wharf in Boston; 111 West Wacker Drive in Chicago; 511-541 West 25th Street, 225 Rector Place and One Madison in New York City; and several portfolios of properties. For more information on Related Real Estate Fund Management, please visit Related’s website: www.related.com About Fidelity Investments Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $4.5 trillion, including managed assets of $1.9 trillion, as of November 30, 2013. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.
About CBRE/New England:
CB Richard Ellis – N.E. Partners, LP, a joint venture with CBRE Group, Inc. has offices in Massachusetts, Connecticut, Rhode Island, Maine and New Hampshire. Please visit our website at www.cbre-ne.com. CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2012 revenue). The company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting.
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