Seaport Square, a master-planned neighborhood under construction in South Boston that spans 23 acres of waterfront development, has secured $112 million in refinancing.
The six-year loan through Starwood Property Trust was negotiated by HFF on behalf of the borrowers, a venture between Boston Global Investors and Morgan Stanley Real Estate Investing (NYSE: MS). The loan was structured to allow the borrower flexibility in selling parcels while maintaining leverage such that the loan will likely carry the sponsor through full execution of their business plan, HFF said.
Collateral for the loan consists of 15 development sites, which have been used as parking lots, and have Boston Redevelopment Authority approvals for 6.3 million square feet of offices, residences, shops, restaurants, schools, hotels and open space. Located across the Fort Point Channel and the Financial District, the parcels are situated in the heart of the Hub’s Seaport District.
Boston Global Investors has developed projects in excess of $6 billion in the last decade. Morgan Stanley Real Estate Investing is the global real estate investment management arm of Morgan Stanley. Established in the early 1990s, Morgan Stanley has $186 billion of assets in 36 countries.
Earlier this month, Skanska broke ground on Seaport Square’s first office tower at 101 Seaport Boulevard. The $126 million, 17-story building will be the Boston headquarters for PwC who will take 75 percent of the 450,000-square foot space. Last year, Skanska bought the one-acre parcel from Morgan Stanley and Boston Global Investors for $33 million.
The site is adjacent to Parcel K, the property Skanska bought last year with Twining Properties for $18.6 million to develop Watermark Seaport, a 350-unit apartment building. The 275,000-square-foot residential tower will be located on the southeast corner of Seaport Boulevard and Boston Wharf Road.
Purchase of a third parcel, across the street from the PwC site, is in the works.
Courtesy of Thomas Grillo at the Boston Business Journal