Park Square Building, 31 St. James Avenue - Boston, MABoston, MA Colliers co-chairman Kevin Phelan, along with senior vice president Stephen Horan and analyst Patrick Boyle of the Capital Markets team arranged the financing of the Park Square Building with Aareal Capital on behalf of Capital Properties.
Located at 31 St. James Ave., the Park Square Building is a class A office and retail building in the city’s Back Bay neighborhood. Rising eleven stories, the historic building spans an entire block between Arlington and Berkeley Sts. and provides 500,000 s/f of rentable area.
“With its 100 year presence in the Back Bay, the Park Square Building reflects the character and history of Boston,” said Horan. The sponsor, Capital Properties, is a New York based real estate investment and development firm with properties in Boston, New York, and Washington D.C.
Colliers secured $133 million in financing to replace the existing debt and provide for capital expenditures including improvements to the lobby and common areas, as well as tenant improvements and leasing commissions. Aareal Capital Corp. provided the three year interest only floating rate loan with two options to extend for one year each.
Boyle said, “Aareal was creative in their financing approach and provided the Sponsor with the flexibility to improve and re-tenant the building.”
Park Square is home to a diverse tenant base including WeWork, Fiksu, Yahoo, Goji, HNTB, and six foreign embassies. The asset was over 96% leased at closing. The office tenants are complimented by an interior first floor retail arcade spanning the footprint of the building.
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