Synergy Investments sells 11-story 2 Oliver St. to NTT Urban Development for $79 million

Synergy Investments has sold the 11-story 2 Oliver St. to NTT Urban Development Corp. of Tokyo, Japan, for $79 million, following a sweeping renovation, repositioning, and releasing of the stately office space. Synergy Investments, led by founder and president David Greaney, purchased the building in late 2012 at 75% occupancy. The sale to NTT, that company's fourth acquisition in the United States, closed with 2 Oliver St. 96% leased. As it has done successfully with other older, mid-sized office buildings downtown, Synergy modernized common areas including the main lobby, corridors and restrooms; upgraded mechanical systems; and replaced the roof. Synergy performed buildouts for new and existing tenants and reconfigured the building's floor space to make it more efficient and attractive. "We re-visioned this building and created space for today's innovative tenants," said Greaney. "That's what we do, and the young and creative companies that were drawn to 2 Oliver were responding positively." Tenants include Elysium Digital, with 20,000 s/f on the top floor; Brafton, with 20,000 s/f; erecruit, with 18,000 s/f; and other cutting-edge companies. There are about 45 tenants at 2 Oliver, a combination of two buildings dating from the beginning of the 20th century that were merged. The building has 223,372 s/f, including an additional floor below grade. When 2 Oliver went on the market in April it was about 90% leased, compared to 96%. The Synergy leasing strategy involved consolidating and re-leasing office spaces using new, highly efficient configurations with high-quality buildouts designed for Boston's growing innovation economy. Elements of the retail space were also re-tenanted to provide an improved mix of amenities for occupants and the surrounding community. In addition to tenants filling vacant space, about half of the space that was occupied is now filled with new tenants at current lease rates. "This is now great space - 2 Oliver is now a perfect example of how blending a historical structure with today's modern design caters effectively to today's technology tenants," said Greaney. "It is one way Boston is reinventing itself." 2 Oliver St. is located in downtown with convenient access to South Station and Downtown Crossing Station on the MBTA's Red, Orange, and Green Lines and Commuter Rail. NTT Urban Development Corp., headquartered Chiyoda City, Tokyo, bought 2 Oliver St. through its overseas subsidiary, UD USA Inc. NTT acquired the building as the majority partner in a joint venture with seller Synergy, which will continue to manage 2 Oliver St. The arrangement is similar to NTT's purchase early this year of two other Synergy-redeveloped buildings, 141 Tremont St. and 27 School St. NTT also owns a property a New York. Synergy Investments is a Boston-based real estate investment and development firm focused on the acquisition, repositioning and operation of commercial office buildings. The firm's specific capabilities include acquisition, debt placement, asset management, leasing, property management, permitting, and construction management. Its current portfolio encompasses more than 3.5 million s/f across about 30 properties in metropolitan Boston. The firm provides space to over 400 companies, and since 2004 has maintained average portfolio occupancy of greater than 95%. Synergy's reputation for active management and consistent execution contributed to its being named CBA Landlord of the Year 2010.