Joint venture purchases boutique office building to implement capital improvement and leasing program; property sits adjacent to MCRE’s office acquisition 110 Chauncy Street
BOSTON, May 6, 2021 /PRNewswire/ — MC Real Estate Partners LLC (MCRE), in a joint venture with an affiliate of Taconic Capital Advisors L.P. (Taconic), has acquired 11 Avenue de Lafayette, a 57,000-square-foot, five-story office building in downtown Boston for $23 million.
The partnership bought the property from Elderhostel, the previous owner and primary occupant of the building. As part of the acquisition, Elderhostel a not-for-profit educational travel organization, will now occupy one full floor of 11 Avenue De Lafayette in a leaseback agreement, and the balance of the building (approximately 40,000 square feet) will be available for lease. MCRE and Taconic intend to execute a comprehensive capital improvement program to reposition 11 Avenue de Lafayette as a best-in-class boutique office environment targeting Boston’s dynamic tenant market. This will be the first-time space in this high character building has been available to the market in over 20 years.
This transaction represents the second recent office building acquisition for MCRE in the Boston market, coming on the heels of their March 2021 purchase of 110 Chauncy Street which sits adjacent to 11 Avenue de Lafayette. Global design firm Sasaki, who completed a long-term lease agreement to occupy the majority of 110 Chauncy Street, will oversee the design work for the renovation of the lobby and other common spaces at 11 Avenue de Lafayette.
MCRE’s founders have a 15-year history of successfully repositioning brick and beam assets in Boston. The acquisition of 11 Avenue de Lafayette expands MCRE’s current Boston portfolio to four properties. This is the first purchase in the market for Taconic.
“MCRE has had terrific success with similar assets in Boston and remains bullish on Boston’s prospects for post-covid recovery. We’re pleased to add 11 Avenue de Lafayette to our growing portfolio in the area and thrilled to be partnering with the talented team at Taconic,” said Andy Nathan, managing principal of MCRE. “This acquisition showcases our continued belief in the urban office sector and we’re confident our planned capital improvement and repositioning program will unlock the full value of this boutique brick and beam investment. We also believe combining the availability for lease and repositioning of 11 Avenue de Lafayette and 110 Chauncy Street will establish a hub for top design and creative office users in downtown Boston.”
The well-located 11 Avenue de Lafayette is near several regional transportation hubs, including numerous commuter railways and Logan Airport, and is centrally located within the heart of Boston’s sought-after financial district. The property also features an adjacent surface parking lot with space for 8 cars and loading.
A CBRE team comprised of Scott Dragos and Tim Mulhall represented the seller in the transaction.