Boston, MA Mike Marcone of Marcone Capital, Inc. has arranged the $25 million financing of a condominium interest in a high quality office building located at 31 Milk St. 

The property is located in downtown, two blocks from Post Office Sq. and close to the mixed use Downtown Crossing area. The property, originally built in 1922, is an eleven story building and is divided into two separate condominium units. 

Under separate ownership, one condominium unit consists of only the first floor retail space that is 100% leased to the United States Post Office. The second condominium unit is the collateral for the loan and incorporates the remaining building which consists of 95,216 s/f of primarily office space. The office space is currently 95% leased to 26 tenants.

The previous owner spent $2.3 million on renovating the property including lobby improvements, window replacements, restroom renovations, common hallway renovations, facade and sidewalk work. The borrower purchased the property in February 2014 and finished the renovation of the building. Since acquisition, the borrower has invested $4.2 million on both property and tenant improvements. The result of all the renovations has been dramatic with the transformation of the property from a typical B quality office building into a high quality, signature building. 

The property is managed by Aegean Capital, LLC, which is owned by Constantine Alexakos. Aegean Capital is a private equity real estate firm that currently owns and manages a variety of commercial real estate assets located throughout New England. 

The non-recourse financing was provided by a Connecticut based bank. 

Marcone said, “We were able to secure very competitive financing in recognition of not only the quality of the asset but also the sponsor who owns and manages other very successful office buildings in Boston.” 

Marcone Capital is a mortgage banking and real estate consulting firm based in Quincy.