More successful transactions are piping in and making headlines yet again in Greater Boston. The latest regards The David Cos. who have paid a whopping $43.3 Million for the Tower Point office building, formerly owned by Meritage Properties, which is located in Bostons developing Seaport District.
This area of the city is widely known as the next frontier for Boston, with literally dozens of plans either already under construction or are soon to be. The proposals are endless, and the scale and quality of them are truly spectacular. Within the next short amount of years, what we see in this area of the Boston Waterfront will be completely transformed, headed by sprawling residential buildings, towering office facilities, hotels, top restaurants and more.
With this latest breakthrough, this property at 27-43 Wormwood Street, which was built back in 1900, has upwards of 154,891 square feet and currently rents for roughly $26/square foot. At six-storys, the founder of Davis Cos., Jonathan Davis, insists that over $2.5 Million will be re-invested into the property. From a new roof deck, to improvements to the HVAC systems, new bathrooms and brand new elevators, the Tower Point office building is in good hands and will be better than ever in the not too distant future.
This now marks the second property that The Davis Cos. has purchased over the past two years. Just last year, they paid an additional $14 Million for a 75,000 square foot office tower rising six-storys at 24 Farnsworth Street. Evidently, they see this area as a sound investment, a place where Boston will thrive as time goes on. In fact, prices are already greatly on the rise. In 2008 around the time of the real estate boom, Meritage Properties paid $32 Million for the property. Now, even with a lack of upkeep over the past five years the property has soared in value by over 35%. Rents in the Seaport District are now achieving a range of $23-$55/square foot with these numbers only expected to rise henceforth as the popularity, rarity, and allure of living and working in the Seaport grows.
More Information: Boston Business Journal