Allianz Real Estate grants $ 150 million loan for Boston Tower
Borrowers will use the funds to refinance 265 Franklin, a 21-story office building in the city’s financial district.
Allianz Real Estate has provided a $ 150 million loan to refinance an office building in downtown Boston. the Munich-based company signed the agreement with the owner of 265 Franklin Street, a joint venture of Clarendon Properties and a fund managed by BlackRock.
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Located in the financial district of Boston, 265 Franklin Street, which has 21 floors, offers multi-tenant floors and full floors. The office spans 350,534 square feet and includes a main floor with retail stores that occupy the entire block and underground parking.
The property is 96.5% occupied by more than 36 tenants with long-term leases, Allianz said. Commercial Real Estate Manager. The two largest leases of the office building are owned by a law firm and a bank, and no other tenant owns more than 5% of the leasable area.
According to Allianz, 265 Franklin offered long-term stable cash flow with rising income potential and was part of the company’s goal of investing in core assets. Last year, Allianz also made a major investment in downtown Boston by partnering with Beacon Capital Partners to acquire 1.2 million square feet of land. office building for $ 845 million.
Believe in the strength of Boston
Even though the COVID-19 pandemic has affected the US office market, Mike Cale, co-head of US debt at Allianz Real Estate, said in prepared remarks that active cities like Boston still offer opportunities. long-term growth despite the current crisis. .
Christoph Donner, CEO of Allianz Real Estate of America, added in his prepared statement that 265 Franklin will contribute to the resilience of Allianz’s portfolio, especially as the United States continues to grapple with the COVID-pandemic. 19 over the next 12-18 months. Donner also made the case for downtown Boston’s financial district in his prepared remarks, saying it will remain relevant as a place to work and as an investment opportunity.