Boston Trophy Tower Commands $455M

By Jeff Hamann

121 Seaport

Skanska has sold 121 Seaport, its newly opened trophy office asset in Boston. The buyer, a joint venture between American Realty Advisors and Norges Bank Real Estate Management, paid $455 million for the fully leased, 400,000-square-foot office portion of the asset, according to Suffolk County records.

The sale, one of Boston’s largest transactions this year, did not include the asset’s retail component. The tower’s approximately 50,000 square feet of retail on the first two floors sold to WS Development in March for $23 million.

Located at 121 Seaport Blvd. in Boston’s Seaport Innovation District submarket, the tower rises between Boston Harbor and the Massachusetts Turnpike. The asset is within half a mile of more than 10 million square feet of Class A office space.

The development kicked off in July 2015, according to Yardi Matrix. The property opened its doors in June, fully leased to two companies—Alexion Pharmaceuticals and PTC. Alexion moved into its 150,000-square-foot space from its former headquarters in New Haven, Conn., over the summer, with PTC planning to occupy its 250,000 square feet at the start of 2019.

Green, cost-efficient features

CBT Architects designed the 17-story high-rise to achieve LEED Platinum standards. Amenities include a private fitness center, a number of outdoor terraces, secured bicycle parking and subterranean parking. The building’s chilled beam system, in conjunction with its elliptical shape, minimize heat gain and increase natural lighting within the structure.

“This investment is well-aligned with our core strategy to target modern, sustainable office properties that are highly sought after by tenants and positioned to perform over time,” said David Willett, senior director at ARA, in a prepared statement. “Its flexible layout with a column-free design and highly sustainable attributes contribute to an 85 percent efficiency factor that enables companies to maximize their workspace and expand their employee base.”

Image courtesy of Cresa Boston