CBRE/New England's debt & structured finance team secured financing for the acquisition and repositioning of The Block on Congress in the amount of $88 million from Natixis Real Estate Capital. The CBRE/NE team of Carlos Febres-Mazzei, Kyle Juszczyszyn and Josh Klimkiewicz negotiated the transaction on behalf of Related. The financing provides Related Beal with capital to acquire the assets and complete its repositioning of the buildings.
The Block on Congress is a five-building portfolio consisting of 343,000 s/f of office and retail space and sits on more than one acre of land. The properties include: 82 Devonshire St./35 Congress St., 68 Devonshire St., 19 Congress St., 15 Congress St. and 54 Devonshire St.
Related Real Estate Recovery Fund acquired the asset in December and Related Beal is leading the repositioning and serving as property manager.
The Block is located at the top of Post Office Sq. reaching back towards the Washington/State St. retail corridor. This location provides commuter access and the ability to integrate a variety of uses into the property, activating a long-dormant street level.
"We are thrilled to be able to partner with CBRE/NE to reimagine one of the most notable locations in downtown Boston and create a compelling and active retail and dining offering that will complement the ideally placed office space," said Stephen Faber, executive vice president of Related Beal.
"The Block on Congress required a creative approach to capitalizing the deal, and understanding Related Beal's unique vision for the properties," said Mazzei. "Our approach to involve lenders early in the process ensured a smooth transition from the marketing phase to the closing phase, and solidified the capital for the deal. We were pleased with Natixis' ability to close within a tight window and a complex deal structure."