MetLife and Norway’s sovereign wealth fund Norges Bank Investment Management (NBIM) have announced that they have bought the One Beacon Street office building in Boston for approximately $561 million. This is the second property investment in Boston and the fourth overall for the joint venture, which now has a real estate portfolio with a gross value of approximately $2.4 billion.
MetLife and Norges Bank Investment Management bought the 34-story office tower from a joint venture of Beacon Capital Partners and insurer Allianz. MetLife will own 52.5 percent of One Beacon Street and be the managing member, while Norges Bank Investment Management will own the remaining 47.5 percent.
Located in Boston’s financial district, One Beacon Street is LEED Platinum certified and offers more than one million square feet of office space. Built in 1973, One Beacon Street is currently about 85 percent leased, with current tenants including the Massachusetts Housing Finance Agency, the University of Massachusetts, the University of Massachusetts Building Authority, Standard Life Investments (USA) Limited and JPMorgan Chase Bank, National Association.
“One Beacon Street in Boston adds a high-quality asset in a core market to our joint portfolio with Norges Bank Investment Management,” said Robert Merck, senior managing director and global head of real estate investments for MetLife. “Our partnership with the world’s largest sovereign wealth fund is built on a strategy of providing first-rate asset management and of investing for the long-term to bring strong returns to our stakeholders.”
The three other properties in the joint venture’s portfolio are: One Financial Center in Boston; District Center (formerly the Thurman Arnold Building) at 555 12th Street, NW, in Washington, D.C.; and 425 Market Street in San Francisco.