Los Angeles-based real estate investment firm CIM Group recently acquired the Boston office building at 1000 Washington Street, along with the adjacent parking structure at 321 Harrison Avenue, from Rubenstein Properties. According to city records, the South End Boston office building commanded $114.2 million.
Boston’s Office Appeal
Rubenstein had purchased controlling interest in the Washington Street office building in late 2014, acquiring the property with long-time manager Nordblom Co.
CIM also partnered with Nordblom, which has managed and operated the existing office asset since 2006, and will continue to do so, as well as oversee the further development of the adjacent 309-stall parking structure. When completed, the Harrison Avenue project is expected to include three levels of parking, first-floor retail, and eight stories of office space.
Rubenstein Senior VP Deke Schultze noted the asset’s high development potential, in a prepared statement: “When we acquired 1000 Washington Street, a key investment consideration was the dramatic transformation we foresaw taking place in the neighborhood. The rapid pace of the area’s transformation, along with the additional development rights, allowed us to exit earlier than originally anticipated. This recapitalization is also a great opportunity for our partner, Nordblom Co., to continue managing this asset and actively participate in the transformation of such an exciting part of Boston.”
The 1000 Washington Street acquisition marks the developer’s second such investment in the neighborhood. CIM’s first foray into the South End Boston office market was buying the six-story, 114,000-square-foot office building at 95 Berkeley Street, which the developer reportedly purchased for $43 million last year, with partner Center Court Mass LLC.
Garage Sale Enthusiasts
As part of its 10-year Boston investment strategy, CIM Group has also parked significant capital in garage properties. Last October, the Los Angeles-based company partnered with LAZ Parking Realty Investors and closed on the $162.5-million acquisition of the historical Motor Mart Garage, located at 201 Stuart Street.
Co-Founder of CIM Group Avi Shemesh stated at the time that “this prime operating parking asset represents one of the target sectors of our infrastructure strategy, which focuses on public goods and services that support urban communities.”
In keeping with that plan, CIM returned to Stuart Street earlier this year and purchased the Revere Hotel Boston Common parking garage across the street, at 200 Stuart, for $95 million. The price tag also included 10,000 square feet of ground-floor retail space and the benefits of an excellent location. Accessible from both Charles Street and Stuart Street, the 826-stall structure is attached to the 356-key Revere Hotel, which was recently renovated and creates significant embedded parking demand.
CIM’s pair of Stuart Street parking properties houses roughly 1,800 spaces combined. The Motor Mart charges $360 for regular monthly parking and $475 for reserved parking, while the Revere Hotel garage charges $165 for an overnight monthly pass, $350 for 24/7 monthly parking and $500 for reserved-assigned space monthly parking. According to the Boston Business Journal, the properties are poised to see new parking demand, as Boston-based developer Transom Real Estate has proposed a 19-story residential building with ground-floor retail, on four neighboring parcels.