One of the largest recent commercial transactions in Boston transferred ownership of the 11-story office building located at 40 Broad Street in the Financial District. TIAA-CREF purchased the building in a real estate sale reported to have totaled $110 million.
The building was purchased in 2006 for $50 million by Transwestern Investment Company in Chicago. The company made significant upgrades to the property before selling to TIAA-CREF. Jones Lange LaSalle brokered the sale.
Experts take the sale as a sign that the commercial real estate market is now recovering from the recent recession. Prices on commercial properties in downtown Boston have moved up since plummeting during the recession. Experts describe the investment property market as ‘extremely strong,” during the past two years and believe that the market is growing in potential for more large commercial real estate transactions.
Whether the market is weak or strong, companies must still transact business, and this often means buying or selling property. A business attorney may represent a company in any property transfers it chooses to make and assist the buyer or seller in understanding the terms of a sale and meeting any requirements for the transfer. It is very important that business owners understand the consequences of any particular sales contract, including the net profit on the sale or the cost to the buyer as well as any rules or regulations that must be followed. There may also be conditions on a sale for a large commercial property. Often, commercial property sales include other factors beyond the transfer of the real property, so it is extremely important that business owners understand all terms of the sale.
Source: Boston.com, “Commercial real estate market stays hot with $110 million sale of Financial District office building”, Callum Borchers, May 23, 2013