156 State Street, Boston

Project: Office Condominium
Offered for Lease with an option to buy- Entire Fifth floor
Lease Price $42.05/SF for a 5 yr. term- Sales price $735,000, or $420.48/SF

The Challenge:
An investor with limited experience in commercial real estate purchased this 5th floor penthouse unit at 156 State Street, Boston, for a price well below its market value. The existing configuration of the space was heavily built-out with private offices, and the space was tired looking and it had not been renovated in a few years. The space had recently been vacated. The investor’s objectives were to either hold and collect a steady cash stream on the investment or to sell the property and reinvest the profit.

The Solution:
The investor retained the services of Lisa DonFrancesco to advise him on options and to market the unit. Lisa reviewed and presented recent market data for comparable properties, and a decision was made to offer the unit for sale or for lease, and to evaluate the offers. The worn carpet was removed, but otherwise the unit was offered ‘as is’. Multiple offers were considered. An attorney looking to be a user/owner was interested in immediate occupancy of the unit, however, before he could own, he needed to sell a residential property. Since time was of the essence for the attorney to occupy the space, and with the uncertainty of his residential property selling, the parties agreed to a 60 day right to purchase at an agreed upon sale price. The right to purchase was exercised shortly after the buyer’s residential property closed.