Biette, Giunta Broker $12.8M Sale of 99 Chauncy St. to Synergy Investment & Development

BOSTON—Two months after tying up 99 Chauncy St. in the city’s Midtown District, Synergy Investment & Development has closed on the 11-story, 96,000-sf office building (pictured), ending a spirited competition negotiated by Grubb & Ellis. The $12.8 million deal is the latest CRE conquest by Synergy, a locally based operation that has been active this year in North Quincy, shelling out more than $55 million to buy stabilized office assets there in two separate transactions.

Despite those commitments, Synergy has concentrated its expanding portfolio in the Hub. Holdings include 141 Tremont St. across from Boston Common, plus 100 Franklin St. in the Financial District. The company has been lauded for revitalizing another downtown property around the corner from 99 Chauncy St., that being a 65,000-sf building at 101 Summer St., with Synergy buying the struggling office/retail asset in June 2010 and quickly re-stocking it with tenants.

Dating to 1935, the Chauncy Street property is approximately 90 percent leased. G&E Vice President Anthony Biette and Executive VP Philip Giunta led the marketing effort on behalf of A.P. Levin, a well-known owner and operator of Hub real estate. Among the building’s admirers is Mike Edward, managing director of G&E’s Boston operations and a veteran Boston leasing professional who relays that “99 Chauncy St. has had a history of sustained occupancy in the high 80’s and low 90’s percent-wise, “making it an attractive investment for clients seeking long-term, stable cash flow.”

Having survived the vagaries of Boston’s business climate for nearly seven decades, 99 Chauncy St. is in an even better position moving forward thanks to upgrades in the surrounding area that include new retail, luxury condominiums and the Ritz Carlton Hotel, says Edward. The asset, he says, “is located in an area with amenities to suit nearly everyone.”

Edward praises the efforts of G&E’s investment sales group for getting 99 Chauncy St. over the finish line at an uncertain time for Class B office product. “They did a great job running the process, and worked very hard to get this done,” Edward says of Biette and Giunta.

Edward also credits seller Daniel Levin for keeping 99 Chauncy St. well-stocked even during downturns in Boston’s office market. Having worked over the past 15 years for Levin, Edwards describes his client as “a respected, hands-on landlord who knows how to price his buildings right,” in addition to keeping the structures well-maintained “and taking good care of his tenants.” In recent years, Edward has assisted Levin in divesting close to 300,000 sf of properties in an eclectic downtown portfolio that now consists of just one property, 91-93 Summer St. that the Levins will reportedly retain.

Synergy President David Greaney did not return a phone call by press deadline. It is unclear whether a leasing agent has been retained for 99 Chauncy St.. Edward says the firm’s knowledge of Boston’s office market will serve Synergy well at the property. The Midtown District has traditionally been an insular submarket, explains Edward, with space users typically not matriculating from outside the area, but also tending to stay there long-term. A savvy landlord who commits to the property is usually rewarded, says Edward, noting that is the reputation Synergy has developed since launching its acquisition platform in 2003.