TH Real Estate sells stake in 501 Boylston Street to Norges Bank Real Estate Management for $291m
TH Real Estate has sold a 49.9 ownership interest in a mixed-use office and retail property located at 501 Boylston Street in Boston, Massachusetts, to Norges Bank Real Estate Management.
Norges Bank Real Estate Management manages the unlisted real estate assets of the Norwegian Government Pension Fund Global.
Total consideration includes a payment of $290.9 million for its ownership interest and the payment of an ongoing asset management fee to TH Real Estate, which will perform the asset management of the property. TH Real Estate will retain the remaining 50.1% interest in the property.
"We are continuously re-balancing our portfolios and considering current market conditions," said Sam Flood, Regional Head, New England & Midwest Investments for TH Real Estate. "501 Boylston was acquired more than a decade ago and, after significant improvements to the property, the building is well positioned in the Back Bay market."
Located in the Back Bay neighborhood of Boston, the property comprises 610,000 sq ft (5,945 sq m) of office and retail space and offers tenants large, efficient floor plates of 60,000 sq ft (5,574 sq m). The Back Bay section of Boston features easy access to shopping, dining and lodging amenities, historical landmarks and open space parks, and excellent transportation options.