Qatari Investor Makes Striking Entry into Back Bay with $100M Office Building Purchase

In a notable real estate milestone, a Qatari investor has recently finalized the largest office acquisition in Boston's Back Bay district since 2020. The acquisition of the 11-story building at 855 Boylston St. created significant buzz when Newmark first announced the sale earlier this month, without disclosing the buyer or the purchase price. However, property records have since revealed that this impressive deal closed at $99.5 million, with the property now under the ownership of an entity connected to Doha-based Ezdan Holding Group.

Historic Investment Shift

The proud new owner procured this 147,000 square foot gem from RREEF Property Trust, a subsidiary of the renowned German investment management firm, The DWS Group. This acquisition marks a significant departure from the recent trend of steeply discounted office deals, as the last transfer of this property took place back in 2000 for $47.2 million. Notably, the property's loan was refinanced in 2019 for $46.2 million.

Stable Tenancy and Upgraded Amenities

855 Boylston St. enjoys full occupancy, housing 13 tenants, including industry leaders such as Perch Energy, Industrious, T-Mobile, and Bank of America. What's more, the property boasts an updated lobby and several inviting outdoor terraces, making it an attractive asset for both occupants and investors.

Back Bay's Pinnacle Office Sale

Newmark's announcement highlighted that this transaction is a game-changer for the Back Bay neighborhood, as it stands as the largest office sale in the area in over three years, according to data from MSCI Real Capital Analytics. This investment demonstrates the growing prominence of the Qatari investor, as Ezdan Real Estate Co., their real estate arm, holds an impressive portfolio comprising over 29,000 residential units, as well as hotel and mall properties in their native Qatar. This milestone solidifies their position as one of the Gulf region's leading real estate developers by market capitalization.

To date, Ezdan Holding Group and RREEF have remained tight-lipped, choosing not to comment on this high-profile acquisition.