Banker & Tradesman reports that lenders have scheduled a March auction for the 36-story One Lincoln Street, where State Street used to be until it moved into newer digs at One Congress, where the Government Center garage used to be.
Banker & Tradesman reports the downtown-Boston office market remains kind of sickly, with high vacancy rates because not everybody has returned to the office following the pandemic. One Lincoln's problems were compounded because 11 of its floors used to be leased by WeWork, which mostly no longer does.
If you dream of owning an office tower of your own, the auction is set for 11 a.m. on March 20, inside the building's Kingston/Bedford entrance. Oh, you'll need to put $1 million into escrow by March 19 to establish your bonafides.
But think of the fun you could have, running its 25 elevators - 20 of them high-speed passenger elevators. And you'd have your choice of spaces in its 900-car garage.
Suffolk County Registry of Deeds records show that in 2022, a series of lenders loaned the building's current owner, Fortis Property Group of Brooklyn, $387 million in mezzanine financing to help it renovate the building after State Street's move.
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If only I had money
By BostonDog
Tue, 02/18/2025 - 10:27am
There's a long history of buildings like these getting sold for "cheap" as the current owners take a big loss. The new owners hold onto it for a few years and when the market recovers, they resell to make a huge profit.
The best example is the Hancock tower which sold at auction in 2009 for $630 million only to be resold the following year for $930 million.
When you're rich, it's easy to become richer. (And when you're poor, it's hard to change that.)
130 Feet Thick
By blues_lead
Tue, 02/18/2025 - 10:41am
The building is about 130 feet thick, N-S. That's too wide for residential conversion.
I wonder if they could split it so the southern quarter of the building is residential, and the rest office? Thirty feet of residential, then 100' of office. (Or the northern portion. Or one long side and one short side.) I know there are other difficulties in converting residential to office, mostly plumbing and HVAC, but with office value in the shitter and residential value still sky high, it might be worth it.
Mezzanine financing
By mg
Tue, 02/18/2025 - 10:45am
Disappointed to learn that mezzanine financing doesn't mean you get a semi-floor with a view of the lobby.
From the B&T article...
By AdamB
Tue, 02/18/2025 - 11:58am
I'm not clear on whether this building is considered "newer". It just opened 20 years ago. Is that considered old already?
The view on the top floor is kinda awesome
By MassMouse
Tue, 02/18/2025 - 1:04pm
I’ve been there for a few State Street diversity events. Absolutely gorgeous view.
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