40 Water St Boston

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Congress Square Office Tower in Downtown Boston Recapitalized

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The former Fidelity Investment headquarters office building located at 40 Water St. in downtown Boston is the subject of a new equity and debt capital arrangement.

In December, Hana Financial Group, on behalf of a Korean investor group, and KTB Asset Management acquired a 95% ownership stake in Congress Square for $342 million, with Related Fund Management (Related) maintaining the remaining 5% ownership interest. Related was represented by Hodges Ward Elliott (HWE). Financing for the deal was provided by KKR and arranged by HWE.

The building at the corner of Water Street and Congress was recently redeveloped, bringing it to a total of 371,996 square feet of Class A Boston office space. Previously, the property was comprised of three separate bank buildings, which have since been combined into one. The renovations to Congress Square preserved the original architecture, while also updating the interior to focus on adaptability and collaboration.

As one of the most admired buildings in Boston, Congress Square is a standout office property with significant architectural qualities. The redevelopment by Related also included the addition of a modern, glass façade, seven-story office tower on top of the existing structure, dubbed the “glass jewel box,” bringing a modern vibe to a historic downtown Boston property.

Paul Gillen, Anthony Ledesma, Allie Boyan and Daniel Parker arranged the equity on behalf of Related for the new venture, while the debt capital markets team at HWE, led by Lawrence Britvan and Jordan Kirkbride, arranged the financing.

“Congress Square has been redeveloped into a visually stunning focal point for the Boston CBD and attracted discerning global capital,” said Gillen, managing director of HWE. “We are thrilled to have introduced Hana and KTB to the asset and the Related team. The transaction affirms what Related accomplished with its renovation, as well as the global appeal of the Boston market.”

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