It's a done deal for Boston's One Lincoln office tower, which has been purchased for $400 million at a foreclosure auction by the lender itself, an affiliate of BDT & MSD Partners. The 36-story structure—apparently only worth half of its former glory—used to be appraised at double this sale price just a few years back. According to the Boston Business Journal, the towering edifice was refinanced for a considerable $1 billion three years ago by Fortis Property Group, its former owner.
MSD Partners, which was at the helm of a $1 billion refinancing package in 2022, cast the sole bid in an all but contest-free auction. Though the property might have wished for competitive bidding, the reality at the auction outside of One Lincoln, in the heart of Boston's business district, was anything but. "The bank's offer was the only bid," as the Boston Business Journal reported, casting a somewhat solemn tone to the proceedings.
One Lincoln has seen a fair share of tenant turnover in its recent history, with State Street Corporation departing in 2023 for greener pastures at One Congress. Yet, not all news is bleak; HarbourVest Partners plans to occupy 250,000 square feet across seven floors in the building, a lease signed in 2022 poised to breathe new life into the structure's substantial square footage.
However, the skyscraper wasn't entirely shielded from the turbulence of the corporate world. Following WeWork's bankruptcy, the co-working giant contracted its expansive lease from 241,000 square feet to a more modest three floors, as Banker & Tradesman detailed. These fiscal shake-ups certainly left an imprint on the tower's perceived value. In an effort to spruce up the property, significant refinancing included $200 million for substantial renovations and upgraded amenities like a new terrace and the addition of a lobby food court.
For the auction itself, attorney Adrienne Walker represented MSD Partners, submitting that winning bid. Though she refrained from commenting further, the public nature of the event underscored the shift in financial landscapes that often underpins such property transactions. The auction, managed by Paul E. Saperstein Co. Auctioneers & Appraisers, was a testament to the evolving real estate dynamics within the city of Boston, demonstrating that sometimes even the tallest towers must adjust to changing skies.
