The Davis Companies expands with acquisition of Fort Point properties from Nuveen

Boston, MA The Davis Companies (Davis) has completed the acquisition of three high-quality, office buildings in the city’s Fort Point neighborhood from global investment manager Nuveen. The portfolio, consisting of 34, 38 and 44 Farnsworth St. and 332 Congress St., totals 151,714 s/f and is currently 94% leased.

The Fort Point portfolio is located in close proximity to both the Fort Point Channel and the retail offerings of the Seaport District, in a prime location that benefits from an amenity base and public transportation, with all major modes of transportation, including water taxi, within a block of each building, South Station a five-minute walk, as is the Downtown Financial District. Logan International Airport is less than a mile away. The portfolio also benefits from access to interstates 90 and 93. 

The acquisitions at 34, 38 and 44 Farnsworth and 332 Congress represent the latest additions to Davis’ national portfolio and mark the firm’s return to the Fort Point neighborhood following the successful repositioning of 24 Farnsworth St. and Tower Point at 27 Wormwood St., which Davis sold in 2015. Significantly, these acquisitions mark the first investment in the city office assets which Davis, a firm for which investment in greater Boston commercial office space has long been primary focus, has made in close to a decade.

“For 50 years, Davis has invested in Boston, driven by our longstanding belief in the resiliency and durability of our city’s commercial base,” said Stephen Davis, president of Davis. “Fort Point is one of Boston’s most dynamic mixed-use neighborhoods. We are excited to have the opportunity to return at this moment of historic asset valuation resetting, to further strengthen an already well performing portfolio and to add to the outstanding offerings in the area.”

This acquisition contributes to Davis’ long-term strategy of investment in this evolving waterfront commercial neighborhood, building upon a portfolio that includes the 1,054 room Omni Boston Hotel at The Seaport, which opened in 2021, and 88 Black Falcon Pier at the eastern end of the Seaport neighborhood, a 360,000 s/f industrial/research and development property acquired by Davis in 2017.

Nuveen acquired the portfolio from Clarion Partners in April 2016 and invested significant capital in both public space and tenant-specific improvements. The portfolio’s high quality tenant roster, high occupancy rate, and collection of “boutique” office buildings made it an attractive expansion opportunity for Davis as they build on the portfolio’s success.

“The Fort Point neighborhood is a rich, dynamic part of Boston’s commercial ecosystem, and we are proud of the growth of these assets through our investment in this district,” said Brendan Graham, Director of Asset and Development Management at Nuveen Real Estate. “We are grateful to our partners, leasing teams, and brokers for their role in executing this transaction and fulfilling the final stage of our strategy for this portfolio.”

Fort Point and the surrounding Seaport area act as Boston’s premier district for life sciences, high-level global organizations, and startups, with notable neighbors to this portfolio including P&G, Amazon, Reebok, and the recently relocated Hasbro. The portfolio is only steps away from a wide array of dining options, retailers, entertainment venues, and high-end residences and hotel offerings. All factors that position the portfolio well for growth and value creation.