Bank of America Corp’s russet skyscraper located at 100 Federal St. in Boston’s Financial District is under agreement to be purchased by Boston Properties Inc. (BXP). Boston Properties also owns Boston’s well known Prudential Center and the Hancock Tower in addition to 52 other properties in the city. According to the U.S Securities and Exchange Commission, the company made a $25 million deposit On February 16 of this year, though the deal is “subject to customary closing conditions” Boston Properties states.
The Boston tower has 1.3 million square feet of space to rent and is 37 stories tall. It’s appearance is especially noteworthy for being Boston’s sixth tallest structures and it’s unique outward protuberance above the foundation of the building. The skyscraper has been a staple of Banking since it’s emergence in 1971 and is one of Bank of America’s largest buildings.
Not only is the bank looking to sell in Boston, but it is looking to sell in New York and North Carolina as well. One of the reasons Bank of America is opting to lease as oppose to own its properties is because it would be a more effective move to focus on business in order to invest their assets elsewhere. “We are looking at streamlining our operations. Real estate is not a core business of Bank of America.” states BOA spokeswoman Kelli Raulerson.
The fact that the bank found a buyer so quickly after making the decision to sell, thanks to the assistance of Cushman & Wakefield, most certainly attests to the fact that the market is indeed strengthening in terms of commercial real estate in the Downtown Boston area. A likely outcome of this sale is that it will peak the interest of institutional investors and investment trusts because of the prospective monetary influx from tenants, according to commercial real estate executive vice president, Lisa Campoli.
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