LaSalle Acquires 10 Post Office Square in Downtown Boston
CHICAGO (March 27, 2017) – LaSalle Investment Management (“LaSalle”), announced that it has closed on the acquisition of an interest in 10 Post Office Square (“10 PO”), an iconic 14-story office building spanning more than 450,000 square feet in the heart of the Boston CBD, recapitalizing a joint venture with Synergy Investments (“Synergy”) who will continue to act as the operating partner. LaSalle acquired the property on behalf of its U.S. value-add fund LaSalle Income & Growth Fund VII (“Fund VII”).
10 PO is located at the corner of Milk Street and Pearl Street in Boston’s Financial District, with frontage along the popular Park at Post Office Square and convenient access to mass transit and area amenities. Constructed across two interconnected towers, 10 PO has been substantially renovated, yet is an recognizable office asset with a distinct sense of history and prominent street-level visibility.
David Schreiber, Managing Director of Acquisitions at LaSalle, commented: “10 PO represented a unique opportunity to recapitalize a landmark asset with a prestigious Boston address. The property’s below-market rental rates provide a compelling canvas to drive further value creation with Synergy, who has demonstrated a strong track record of success in this space.”
The property features a diverse 36-tenant roster with an average remaining term of six years. Consistent with the Fund VII’s objectives, LaSalle is positioning the asset to realize further upside through strategic capital investment, including upgraded building systems, new tenant amenities, renovated common areas, and the addition of an upscale, ground-level restaurant that will further elevate the property’s image and relevance to today’s tenants looking for a vintage feel with modern functionality and conveniences.
Jim Hutchinson, President of LaSalle’s Income & Growth fund series, added: “We are excited to continue the extensive capital improvement program for this well-known property. LaSalle has consistently grown its ownership in the Boston CBD, and will bring its market knowledge and renovation experience to our partnership with Synergy to maximize returns for the fund’s investors.”
David Greaney, President of Synergy Investments commented: “We are very pleased to commence our relationship with LaSalle through our continued investment in 10 Post Office Square. We look forward to executing our joint strategy of further improving the physical asset, enhancing tenant experience and driving value.”
Newmark Grubb Knight Frank provided brokerage services on behalf of LaSalle, Synergy Investments and the seller.
About LaSalle Income & Growth Funds
The LaSalle Income & Growth funds are the firm’s flagship closed-end U.S. value add fund series, with the first fund in the series launched in 1996. Aggregate fund series capital commitments total $2.1 billion, with over $5.0 billion invested in over 89 property investments across all funds in the series. Fund VII seeks to acquire under-managed, under-capitalized, or mispriced assets to be repositioned as core assets. Property level-investment strategies include lease-up, renovation/repositioning and ground-up development. Fund VII began acquiring assets in 2016.
About LaSalle Investment Management
LaSalle Investment Management is one of the world’s leading real estate investment managers with approximately $60 billion of private and public equity and private debt investments under management across all of LaSalle’s operating subsidiaries. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle Investment Management, Inc., and its affiliates are operationally independent, wholly-owned subsidiaries of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com.
This press release does not constitute an offer to sell, or the solicitation of an offer to buy any interests in any product offered by LaSalle, or for the advisory services of LaSalle, in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made by means of a private placement memorandum.