hancock tower

Boston's Hancock Tower Gets New Owners

Boston's most recognizable skyscraper, the John Hancock Tower has a new owner. Boston Properties has purchased the tower from private-equity firms Normandy Real Estate Partners and Five Mile Capital Partners for about $289.5 million, plus the assumption of about $640.5 million in debt, a total of around $930 million. The tower sold at auction last year for around $661 million ($20.1 million for the mezzanine debt as well as that $640.5 million mortgage). The tower had sold for $1.3 billion in 2006.

According to a Wall Street Journal article the sellers have agreed to complete some capital and improvement projects that are under way. Last year we mentioned that the owners were planning a $20 million renovation inside the building adding restaurants, shops and underground parking. Boston Properties also owns other local icons including the Prudential Tower and 111 Huntington, a building famous for its rooftop crown.

Tags: boston, boston real estate, hancock tower, john hancock tower

$20 Million Renovation To Add Retail Space To John Hancock Tower

by Deidre Woollard (RSS feed) —

Filed under: Real Estate Developments

Earlier this year, Normandy Real Estate Partners and Five Mile Capital Partners picked up Boston's tallest building Hancock Place, better known as the John Hancock Tower, for nearly $661 million (a bit of a steal considering it sold for $1.3 billion in 2006). Now the partners have announced some plans for the glass skyscraper. The owners have obtained city approval to go forward with a $20 million renovation inside the building. The proposal will fill 90,000 square feet of unused space on the high-rise's ground floor and lower levels with three restaurants, shops and underground parking. The Boston Herald reports that a two-level 10,200-square-foot eatery will be located along the Stuart Street side of the tower. A second cafe is planned for the St. James Street side of the tower and 1,960 square feet of space for a small restaurant or retail tenant with another 8,800 square feet of retail is on the lower level. No word yet on what businesses might be potential tenants.

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Tags: boston, hancock tower, HancockTower, john hancock, JohnHancock, skyscraper

Hancock Tower Sells At Auction

by Deidre Woollard (RSS feed) —

Filed under: Real Estate Developments

Boston's tallest building, the John Hancock Tower sold today at auction for a price far below the $1.3 billion it sold for in 2006. Bloomberg reports the tower was sold to Normandy Real Estate Partners and Five Mile Capital Partners LLC for $661 million. The companies will be paying $20.1 million for the mezzanine debt on the 60-story building as well as taking over a $640.5 million mortgage. The bidding for the Hancock tower took less than two minutes. With rents and occupancy sinking over the past couple of years, the building's value is now believed to be less than $750 million.

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Tags: boston, hancock tower, HancockTower, skyscraper

Will Boston's Hancock Tower Be Sold At Auction?

by Deidre Woollard (RSS feed) —

Filed under: Real Estate Developments

One of Boston's most recognizable buildings, the John Hancock tower is in deep financial trouble. The 60-story glass tower is scheduled to be sold in a foreclosure auction on March 31. The Boston Herald reports that the current owner, Broadway Partners, may file bankruptcy before then. The company bought the tower in 2006 for $1.3 billion hoping that rents in the office tower would provide income. However the economy's quick descent and the erosion of rental prices in Boston are making that purchase look like a bad investment. It is now projected that the tower is worth just $800 million. A spokesman for Broadway Partners has only said the the company continues to negotiate and hopes that "something positive will take place before the auction."

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Tags: boston, foreclosure, hancock tower, HancockTower