Starwood Real Estate Income Trust Inc., a perpetual-life monthly NAV REIT sponsored by private investment firm Starwood Capital Group, has purchased 60 State Street, a 38-story Class A office tower located in downtown Boston, Massachusetts, for $614.3 million, excluding closing costs.
The property was purchased in a joint venture transaction with a Starwood affiliate, with the REIT owning 75 percent of the joint venture and the affiliate owning the remaining 25 percent. The affiliate has the option of selling its interest to the REIT within four months of the closing of the transaction at cost plus a market interest rate.
Completed in 1977, 60 State Street totals approximately 911,400 square feet along with a 240-space subterranean parking garage and sits adjacent to Boston’s Faneuil Hall Marketplace. The REIT said that the property is “a sought-after destination for office tenants given its surrounding amenities, unobstructed views of Boston Harbor, and proximity to multiple modes of public transportation.”
60 State Street is 91 percent leased at closing and has 32 tenants, including law firms, asset managers, and technology companies. The location serves as the Boston office for international law firm Wilmer Hale and as the global headquarters for asset manager Amundi Pioneer (formerly Pioneer Investments). The property also includes the State Room, an event venue at the top of building that can accommodate up to 1,400 guests.
In other Starwood REIT news, the REIT recently updated its monthly per share net asset values for its shares of common stock as of February 29, 2020.
Starwood Real Estate Income Trust Inc., which invests in stabilized real estate across the United States and Europe, broke escrow in December 2018 and raised $615.6 million in investor equity as of the third quarter of 2019. The REIT’s real estate portfolio totals $792 million across 27 properties, and the company had $269.2 million invested in 87 positions in real estate-related securities, as of September 30, 2019.