Largest Downtown Boston Tower Listed for Sale Since 2020 Hits the Market

An affiliate of finance giant TIAA has put the 99 High St. office tower in downtown Boston on the market. This 32-story building could become the largest property to trade in Boston's Financial District since the onset of the Covid-19 pandemic.

Ownership and History

TIAA has owned the 99 High St. building since 2005, purchasing it for $273 million, or approximately $374 per square foot. A representative from TIAA affiliate Nuveen Real Estate has not commented on the sale.

Market Conditions and Asking Price

A source revealed that the asking price is similar to what TIAA paid nearly two decades ago, indicating a significant drop in building values since their pre-pandemic peak. However, it's uncertain whether the property will sell for this amount. The largest office building sale in post-Covid Boston was 101 Arch St., which Synergy purchased for $78 million, or just under $200 per square foot, much lower than its 2005 price of $122 million.

Broker and Financial Details

Newmark is the broker for the 99 High St. offering and has not responded to inquiries. Green Street, a real estate research firm, reported that Nuveen’s lender, MetLife, is open to modifying the existing debt as part of the sale. MetLife issued a $277 million loan for the building in 2018.

Recent Office Sales in Boston

Despite a slowdown in office sales, over a dozen buildings in or near downtown Boston have sold in the past year, mostly low-rises. The largest recent sale was 101 Arch St., which is smaller than the 730,000-square-foot 99 High St. Additionally, Clarion is offering a partial interest in One Marina Park Drive in the Seaport District.

Investor Interest and Financing Challenges

Real estate leaders note growing investor interest in office buildings, though securing financing for larger towers remains difficult. Debt funds and commercial mortgage-backed securities providers are more willing to finance these deals than traditional banks.

Market Activity and Synergy’s Role

Since mid-2022, Synergy has acquired all four buildings over 100,000 square feet that have sold in downtown Boston. David Greaney, Synergy's founder, is known for purchasing properties at or near the bottom of economic cycles.

TIAA’s Presence in Boston

TIAA is a significant property owner in Boston, with a portfolio valued at $1.73 billion as of fiscal year 2023. Other properties include 350 Washington St. and 33 Arch St., the latter housing one of the larger WeWork locations in the city. Nuveen faced issues during the WeWork bankruptcy but retained the lease at a reduced rent.