711 Atlantic Avenue
Net Equity IRR
6-story brick-and-beam office building with high ceilings, exposed brick walls, abundant natural light, and prime location across from South Street Station – Boston’s main transit hub. At the time of acquisition, the property was approximately 60% occupied with a major lease pending and slow leasing activity. STE recognized that the current owner, a JV between a local operating partner and an out-of-town investment fund, had never properly positioned the ground floor or partial subgrade space to take advantage of its strong location for retail, and that the building was under-measured. Within six months, STE converted the ground floors to a retail destination by creating a new corner entrance. Leases were executed with a Dunkin Donuts franchisee to occupy the prime corner space, and Workbar for the partial subgrade space, increasing rentable square footage by 15%.
Leases were executed with a Dunkin Donuts franchisee to occupy the prime corner space, and Workbar for the partial subgrade space, increasing rentable square footage by 15%. Workbar was so successful that it expanded its lease after the first year. This activity sparked interest in the office portion of the building, and the property was repositioned from an under-managed B-multi tenant office building catering to small tenants to an A-mixed-use building catering to full floor headquarters users – including Trader Joe’s, who leased the third floor for its east coast headquarters. The property was 98% occupied at the time sale.