Regions Northeast | Boston
Jan 16, 2008
By: Dees Stribling, Contributing Correspondent
Brookfield Asset Management has closed a deal to buy the balance of a property it previously co-owned with an affiliate of RREEF Alternative Investments, a member of Deutsche Bank Group. According to a report in the Boston Globe this morning, Brookfield paid about $477 million for 49 percent of the officer towers at 53 and 75 State St. in Boston, finalizing the transaction as 2007 drew to a close.
All together the properties total about 1.87 million square feet, along with parking space. The transaction came in spite of recent sluggishness in the Boston-area real estate investment market. The third quarter of 2007 saw only a handful of properties trade hands in the market, including the 270,000-square-foot Two Oliver St. for $61.5 million and the 110,000-square foot 30 Winter St. for about $30 million, both near the properties that Brookfield bought.
The 53 and 75 State St. buildings are in Boston's Financial District, which has seen relative strength recently. According to Cushman & Wakefield, class A vacancy in the submarket stood at 7.2 percent in the third quarter of 2007, a full percentage point drop from the second quarter. Although Financial District class A vacancy is still above the historic low of 1.7 percent--which occurred in 2000, during the height of the tech boom--vacancies in the submarket have come down 5.3 percentage points in the last two years.
Toronto-based Brookfield, which also invests in power and infrastructure assets, currently has approximately $90 billion of assets under management. The company recently spun off its timber and power assets into a Bermuda-based partnership, creating an offshore investment vehicle.
By: Dees Stribling, Contributing Correspondent
Brookfield Asset Management has closed a deal to buy the balance of a property it previously co-owned with an affiliate of RREEF Alternative Investments, a member of Deutsche Bank Group. According to a report in the Boston Globe this morning, Brookfield paid about $477 million for 49 percent of the officer towers at 53 and 75 State St. in Boston, finalizing the transaction as 2007 drew to a close. All together the properties total about 1.87 million square feet, along with parking space. The transaction came in spite of recent sluggishness in the Boston-area real estate investment market. The third quarter of 2007 saw only a handful of properties trade hands in the market, including the 270,000-square-foot Two Oliver St. for $61.5 million and the 110,000-square foot 30 Winter St. for about $30 million, both near the properties that Brookfield bought.
The 53 and 75 State St. buildings are in Boston's Financial District, which has seen relative strength recently. According to Cushman & Wakefield, class A vacancy in the submarket stood at 7.2 percent in the third quarter of 2007, a full percentage point drop from the second quarter. Although Financial District class A vacancy is still above the historic low of 1.7 percent--which occurred in 2000, during the height of the tech boom--vacancies in the submarket have come down 5.3 percentage points in the last two years.
Toronto-based Brookfield, which also invests in power and infrastructure assets, currently has approximately $90 billion of assets under management. The company recently spun off its timber and power assets into a Bermuda-based partnership, creating an offshore investment vehicle.
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