Beacon pays steep markup to buy back Channel buildings

Written By Unknown on Minggu, 30 Juni 2013 | 00.48

Beacon Capital Partners is back in the game at the Channel Center in South Boston's humming Fort Point Neighborhood.

The Hub real estate investment firm purchased the properties at 7-9 Channel Center for $7.8 million and 10-20 Channel Center for $62 million from Southport, Conn.-based CV Properties, according to Registry of Deeds documents filed yesterday.

The combined $69.8 million acquisition is a portion of the Channel Center holdings that Beacon had sold to CV Properties at a loss in 2007 for $21.5 million, after the area's revitalization was too slow to take hold. It originally bought 16 former Boston Wharf Co. industrial warehouse buildings in 2000 for $40.5 million, according to published reports.

"Beacon was one of the earliest companies to see the value of the Fort Point area," said Vivien Li, president of the Boston Harbor Association.

"The fact that they're now coming back to the district really says something about how the area has now evolved toward Class A office space."

Beacon declined comment, and CV Properties did not return calls.

The Channel Center consists of about a dozen former warehouse buildings off A Street that include 209 condos and 89 Midway Studios artist live/work units.

The 7-9 Channel Center buildings are vacant and yet to be renovated. Tenants at 10-20 Channel Center include members-only online shopping site Rue La La and Cengage Learning.

CV Properties is currently building One Channel Center, a $225 million, 11-story office building that's pre-leased to State Street Bank and a 970-space parking garage slated to be completed next year.


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