Fortis Property Group Lands $1B Refi for Boston Tower

One Lincoln. Image courtesy of Fortis Property Group

Owner Fortis Property Group has completed a $1 billion-plus refinancing of One Lincoln, a 36-floor, 1.1-million-square-foot Class A office tower in Boston.

The refinancing proceeds reportedly will go toward repaying existing debt and providing more than $200 million in capital upgrades geared toward wellness and lifestyle amenities, as well as future leasing costs.

In addition, One Lincoln has gained a new anchor tenant, HarbourVest Partners, a leading global private markets firm. The Boston-based private equity company has signed a long-term lease for more than 250,000 square feet of office space across 11 floors.

Joel Kestenbaum, president of Fortis Property Group, said in a prepared statement that the lease deal was “nearly a year in the making.”

HarbourVest will move its Boston headquarters and all of its more than 650 Boston-based employees to One Lincoln, where it will replace State Street Corp. as the building’s name tenant. HarbourVest expects to move into the building in 2025.

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Completed in 2003, One Lincoln features more than 1.1 million square feet of office space and 900 parking spaces. Following this refinance, it will be undergoing major capital improvements including a complete renovation of the lobby, food services and amenity center, as well as reconfigured floorplates.

A diverse set of amenities will include an array of dining options, including an artisanal market, biergarten, al fresco seating and dining space. Health and wellness spaces will consist of a rooftop tennis court and basketball courts, a boxing ring, fitness center, and 1/8-mile outdoor walking trail. The building will also feature flexible spaces with stadium seating that can be used for exhibitions, speaking events or private gatherings.

Big buildings, big leases

At the beginning of 2019, State Street Corp. signed a lease for its new headquarters, 510,000 square feet at One Congress, a 1 million-square-foot office tower then under development as part of Boston’s six-building Bulfinch Crossing project. The 15-year lease is set to start in 2023, when State Street’s lease at One Lincoln expires.

Boston’s office market is bedeviled currently by large office conversions in the suburbs, which contributed to negative metro-wide absorption of nearly 1 million square feet, according to a second-quarter report from JLL. Fortunately, the CBD is more stable, with positive absorption for the third consecutive quarter.