Carr Properties JV Lands $650M for Boston Office Tower

Carr Properties and National Real Estate Advisors have closed on a $650 million single-asset, single-borrower loan for One Congress, a 1 million-square-foot office tower in Boston. Wells Fargo and Bank of America provided the financing in a deal arranged by JLL.

Existing debt included a $570 million construction loan originated in December 2019 by Wells Fargo Bank, according to information provided by CommercialEdge.

JLL Executive Managing Directors Riaz Cassum and Coleman Benedict, Senior Managing Director Jim Meisel, Director Mike Shepard and Associate Hugh Doherty led the Capital Markets Debt Advisory team that worked on behalf of the borrowers.

A Boston trophy office tower

The 43-story, LEED Platinum-certified One Congress is Boston’s newest trophy office asset. The property reached full preleasing 12 months before it was delivered, in 2023. The key part of that milestone was a 510,000-square-foot, 15-year lease by State Street, which relocated from 1 Lincoln St.

Designed by the world-renowned architecture firm Pelli Clarke & Partners, the building features a full-floor amenity center with food and beverage service, a 15,000-square-foot rooftop terrace space, a 7,000-square-foot fitness center and a triple-height lobby with coffee bar and seating. Its floorplates range from 8,800 to 27,500 square feet, CommercialEdge also shows.

One Congress rises within the 4.8-acre Bulfinch Crossing redevelopment, the former site of the Government Center Garage. The tower has direct access to the MBTA’s Orange and Green lines and is walkable to both North Station and South Station, offering commuter rail access to the Greater Boston area.

Some bright spots

Boston’s office market has gotten a pleasant respite from three straight quarters of vacancy decreases, mostly driven by “a slowdown in widespread space reductions and a notable downtown expansion,” according to a first-quarter report from JLL.

The quarter’s largest lease was for 256,000 square feet, when marketing automation specialist Klaviyo renewed and expanded at 125 Summer St. Another notable office deal was when Nutter, McClennen & Fish inked a 125,000-square-foot renewal across four floors at Seaport West, JLL reported.

Another facet of the market, however, was highlighted last month, when Nuveen sold 99 High St., in the Financial District, to Synergy for just $227 million. That amount reportedly was about $100 million under the valuation for the 32-story, Class A tower and was also less than what Nuveen had paid for it about 20 years prior.