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A Compendium of Property & Capital News
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Sep 16
A Compendium of Property & Capital News

Allianz, BCP Lining Up to Buy 75 State St. Stake Via NKF; Deal May Near $635M

March 26, 2019 — By Joe Clements
75 State Street, Boston MA

BOSTON—A year after being put up for sale by Brookfield Office Properties, downtown’s ornate 75 State St. is about to get new majority owners comprised of a joint venture familiar with the neighborhood—Allianz and Beacon Capital Partners—fresh off their autumn purchase of the abutting Exchange Place at 53 State St., that 1.2-million-sf tower acquired for $845 million in a deal including the Massachusetts Pension Reserves Investment Management Board.

It is unclear whether Mass PRIM is participating in the 75 State St. infusion, but yet another familiar face is said to be on board—Brookfield —amid claims the global CRE powerhouse will retain a slice of around 20 percent, according to multiple accounts. “Looks that way,” concurs one observer tracking the process. Pricing last year had been talked about being in the $635 million to $640 million range; it is unclear how much Brookfield’s remaining in on the roster would impact the prior estimates.

Newmark Knight Frank, agents for the transaction, did not respond to inquiries as of press deadline, the team led by Robert E. Griffin Jr., Edward C. Maher Jr. and Matthew E. Pullen also brokers for the record-breaking Exchange Place trade that exceeded $680 per sf.

The high-profile listing next door was put on hold for a bit last autumn, with reasons for the impasse never explained beyond speculation Brookfield was weighing whether to keep a portion of the asset as now appears to be the case. More recently, rumors emerged Allianz and BCP had their eyes on the 1.07-million-sf prize, among downtown’s most recognized buildings thanks to its gold-leaf design created by famed architect Skidmore Owings & Merrill.

“It is beautiful inside and out,” remarks one CRE professional in agreement that Allianz and BCP are on the verge of buying controlling position in the 31-story, LEED Gold structure which features 685 parking spaces in six underground levels.

BCP, led by Chairman/CEO Alan Leventhal and President/COO Fred Seigel, is headquartered a few blocks east at 200 State St. The homegrown firm recently announced the closing of a $1.5 billion value-added investment vehicle that has already completed deals on the west coast. Observers could not say where the capital will come from for the pending Hub purchase. As previously detailed by Real Reporter in unveiling the Exchange Place agreement, Allianz and BCP had already successfully repositioned another Financial District high-rise, the venerable One Beacon St., now owned by MetLife and Norges.

Edward C. Maher Jr. Matthew E. Pullen Robert E. Griffin Jr.