BOSTON, MA – April 24, 2017 – Colliers International announced today that its Boston Capital Markets Group has closed the $41 million sale of and arranged $26.65 million in acquisition financing for the corporate headquarters of Public Consulting Group, Inc. (PCG), a leading public sector management and technology consulting firm, located at 148 State Street in the heart downtown Boston, Massachusetts.
Colliers marketed the property on behalf of the seller, an entity controlled by principals of PCG, and procured the buyer, a joint venture controlled by Harbor Trading USA, Inc., a California corporation that serves as the U.S. investment vehicle of the Süsskind & Rokeach family (Berlin, Germany). This transaction marks the company’s first acquisition in downtown Boston.
Totaling 64,500-square-feet, 148 State Street is a core Class B office asset anchored by PCG, which occupies 87% of the building on floors 2 through 11 as its flagship headquarters. PCG, who Colliers Boston’s president James Elcock also advises on its national, 62-location portfolio, has committed to remain in the building subject to a long-term lease with new ownership. The balance of the building, totaling 9,000 square feet of retail space, is fully leased to The Ginger Man, a popular two-floor craft beer bar and public house.
"We are probably beyond the point of calling it a trend as opposed to mere fact, but foreign capital's interest in CBD Boston definitely has not subsided," shared Doug Jacoby, Executive Vice President of the Colliers Investment Sales team. "Demand is high and supply is low so there are plenty of groups – both local and foreign – throwing their hat in the ring for core assets that hit the market." Joining Jacoby in the sale efforts were executive vice president Scott Dragos, vice president Tony Hayes, assistant vice president Tim Mulhall and associate Dan Hines.
Additionally, senior vice president Jeff Black of Colliers International's Boston-based debt team assisted the new ownership in securing a 10-year, fixed-rate loan through Blue Hills Bank, a full-service community bank headquartered in Hyde Park, MA.
A representative of Harbor Trading details the transaction further, saying: "This purchase allows Harbor Trading to get a foothold in the Boston market, while expanding its North American presence with the purchase of a keystone asset in a growing market with continued potential. The purchase of 148 State Street represents our desire to invest in a long-term secure asset with superior underlying fundamentals, and located on one of the oldest and most famous streets in downtown Boston, surrounded by numerous historic landmarks. It's no surprise to us that a dynamic and successful company like Public Consulting Group would choose this building to serve as its global headquarters from among all of its holdings throughout the country, and we couldn’t be happier to begin a long-term relationship with such a great organization. The entire team from Colliers was great and they played an invaluable role in helping us to navigate a local market in which we are relative newcomers."