January 12, 2015 – Philadelphia – Affiliates of Rubenstein Partners, L.P. (such affiliates together, “Rubenstein”), in partnership with Nordblom Company, have acquired 1000 Washington Street, a 242,000-square-foot office asset located in Boston, MA, for $75 million. Rubenstein Partners, L.P., based in Philadelphia, is a vertically integrated real estate investment manager specializing in value-added office property opportunities in the Eastern half of the United States. Nordblom Company is a Boston-based investment, development, and management company.
1000 Washington Street is an 11-story, 242,000 SF office building residing on two acres adjoining the Financial District, Back Bay and South Boston. Featuring a 300-car garage, penthouse cafeteria, lower-level fitness center with locker rooms, and 24/7 security personnel with key-card access, the property is centrally located near a wide array of amenities including retail and dining. Ease of access is offered with entrance ramps to the Massachusetts Turnpike, Southeast Expressway and I-93 just a short distance away, while Logan International Airport is a seven-minute drive. The property is also served by the MBTA’s Silver Line and provides convenient shuttle service to South Station.
The Rubenstein/Nordblom partnership was particularly drawn to 1000 Washington Street’s strategic location in a rapidly improving section of the downtown South End/Back Bay office submarket and the strength of the current tenant roster. “In selecting our investments in urban areas, we seek opportunities to enhance the value of well-located assets in improving neighborhoods. We believe that 1000 Washington provides us with such an opportunity, and look forward to executing a successful business plan with our partner Nordblom Company,” said David Rubenstein, Founder and Senior Managing Partner of Rubenstein Partners, L.P.
Nordblom has extensive history at the property having redeveloped, operated and partnered in ownership since 2006. Rubenstein and Nordblom plan to make further investment and improvements to enhance 1000 Washington Street’s market positioning and capitalize on burgeoning office demand for amenity-rich, mixed-use areas. “We believe its ideal location within a transforming urban neighborhood with little competitive office supply makes 1000 Washington Street exactly the kind of opportunity we look for, as in-place rents reflect the area’s industrial past rather than its vibrant, mixed-use future,” said Deke Schultze, Senior Vice President of Rubenstein Partners, L.P., and director of the New England region. Ogden Hunnewell, Executive Vice President/Partner of Nordblom Company added, “We are extremely excited about expanding our relationship with Rubenstein Partners and the prospects for value creation going forward at 1000 Washington Street given the dramatic transformation occurring in its surrounding neighborhood.”
The partnership was advised on its acquisition of 1000 Washington Street by an HFF team consisting of Riaz Cassum, Senior Managing Director; Lauren O’Neil, Director; and Brett Paulsrud, Senior Real Estate Analyst. The same HFF team worked with Nordblom and Rubenstein in securing the property’s first mortgage financing with East Boston Savings Bank (EBSB). Mark Terry, Senior Vice President, and Jonpaul Sallese, Vice President acted on behalf of EBSB in the mortgage transaction.
About Rubenstein Partners
Rubenstein Partners, L.P., founded in September 2005, is a private real estate investment management and advisory firm with operations throughout the Eastern United States. The firm is led by its founder, David Rubenstein, and a group of senior real estate executives, and is focused on directing and managing value-added office real estate investments, primarily in the Eastern United States. Rubenstein Partners’ predecessor company, The Rubenstein Company, LP and affiliates, founded in 1969, was one of the largest private owner operators of Class A office real estate in the Mid-Atlantic, owning and operating a portfolio of assets valued at approximately $1.2 billion at the time of its disposition in 2004. Since 2005, Rubenstein Partners has, on behalf of its investors and clients, invested in more than 10,000,000 sq. ft. of office real estate assets throughout the Eastern United States. For more information, visit www.rubensteinpartners.com.
About Nordblom Company
Nordblom Company is a real estate enterprise with a 90-year history of investing, managing and developing properties throughout the New England region and select markets across the country. The company currently owns office, commercial and multi-family properties in the New England and Carolina markets and is committed to creating dynamic work and living environments that further the quality of life for the people who occupy its properties. Headquartered in Burlington, Massachusetts with offices in Boston, Brookline, and Raleigh, North Carolina, Nordblom Company has $1.2 billion in assets under management.
About HFF
HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
About East Boston Savings Bank
Founded in 1848, East Boston Savings Bank operates 27 full-service branches in the greater Boston metropolitan area and offers a variety of deposit and loan products with quick, local decision making on loans up to $50 million. Visit ebsb.com/Big or call 800-657-3272 to speak with a Commercial Real Estate Officer.