By Bogdan Odagescu, Associate Editor
Boston—Colliers Boston recently closed the $133 million financing of Park Square Building in Boston with Aareal Capital on behalf of Capital Properties. The funds were secured by Colliers Co-Chairman Kevin Phelan, assisted by Senior Vice President Stephen Horan and Patrick Boyle of the Capital Markets team.
The total amount will cover the replacement of existing debt, as well as improvements to the lobby, common areas, and revamping of other interior office spaces. Aareal provided a three-year interest-only floating rate loan, which includes two options for one-year extensions each. “Aareal was creative in their financing approach and provided the sponsor with the flexibility to improve and re-tenant the building,” said Boyle in prepared remarks.
Located at 31 St. James Ave. in the Back Bay, the 11-story Park Square Building is situated steps away from the Arlington Light Rail MBTA station for Green Line services and within a 10-minute walk from the Tufts Medical Center station for the Orange Line. The historic 540,000-square-foot Boston office property, spanning a full block between Arlington and Berkeley Streets, was originally completed in 1922 and last saw cosmetic renovations in 1999. According to Yardi Matrix, the Class A Park Square Building is managed by its owner, Capital Properties, and is served by Boston Realty Advisors as leasing manager.
At the time of closing, the property’s occupancy rate surpassed 96 percent, the tenant roster including names like WeWork, Fiksu, Yahoo, Goji, and HNTB, as well as the French, Turkish, Spanish, Portuguese, and Columbian Consulates. Park Square Building also includes 40,000 square feet of first-floor retail.
Image courtesy of Yardi Matrix