Capital Security Advisors, Brickman Associates, and Shimizu Jointly Acquire Two Office Buildings in Boston
― Expansion of Real Estate Investment in North America ―
Shimizu Corporation (President Kazuyuki Inoue) recently acquired two rental office buildings in the Back Bay neighborhood of, Boston, Massachusetts through its United States based real estate subsidiary as a part of its overseas real estate development business expansion plan. The purchase price of these buildings, located at 535 and 545 Boylston Street, was approximately 17 billion yen ($150 million USD). To enhance the value of these buildings, Shimizu will implement an infrastructure upgrade plan with a projected budget of approximately 1 billion yen ($8 million USD).
Shimizu’s U.S. subsidiary, Shimizu Realty Development (U.S.A.), Inc. (SRD), which is responsible for the real estate business in the U.nited States., jointly established the ownership entity, SCB Boylston PO, LLC, with local real estate companies Capital Security Advisors and Brickman Associates. SCB Boylston PO, LLC will own and operate these two properties. Under this corporate structure, SRD owns a stake of approximately 97%.
Boylston Street is centrally located within Boston's Back Bay neighborhood which is a well-known, high-class office street lined with law firms and financial institutions. Back Bay is adjacent to East Cambridge where a cluster of startups in the life sciences field and other sectors is found; The Back Bay is now beginning to attract this high-demand, fast growing sector.
The acquired properties are comprised of two rental office buildings, which are partially connected on several floors. Each building contains 1 basement floor and 13 above-ground floors, with 17,593 m2 (189,372 square feet) of total floor area, as well as, LEED Gold Certification status. The current occupancy is approximately 90%. The buildings will generate stable rental income and Shimizu expects to divest the properties in accordance with the expected hold period.
Shimizu’s Mid-Term Management Plan (2019-2023), publicly announced in 2019, targeted a strengthened real estate development business in North America. Based on this Mid-Term Management Plan, Shimizu has expanded its real estate business in the U.S. with the acquisition of the Albano Building, a rental office building in New York City in 2019, and the acquisition of The Shaw, a brand-new luxury apartment building in Washington, D.C. in 2020. Shimizu will continue to expand upon its value-add-type investments in the office and rental apartment sectors in major U.S. cities, primarily on the East Coast, while also considering investments in the development of logistics facilities in the Southeast, in order to diversify its real estate portfolio.
≪For Reference≫
Property Overview
- Name
- 535-545 Boylston
- Location
- 535 & 545 Boylston St., Boston, Massachusetts, USA
- Building size
- 1 basement floor, 13 above-ground floors, floor space 17,593 m2 (189,372 sq-uare feet), site area 1,619 m2 (17,426 sq-uare feet)
- Year built
- 1967(535) and 1972(545)
- Purpose
- Office and Retail
Building Exterior
Joint Business Overview
Real Estate Business Subsidiary
Shimizu Realty Development (U.S.A.) Inc.
- Location
- New York State
- Director
- Haruhiko Washimi
- Established
- 2002
- Business Overview
- US subsidiary of Shimizu Corporation undertaking value-add-type investments in offices and residences in East Coast gateway cities, as well as development in logistics facilities in the Southeast. Manages and operates properties with a mid-to-long term investment horizon.
Partner
Capital Security Advisors
- Principal
- Dennis R. Irvin
- Location
- New York City
- Established
- 2011
- Business Overview
- Real estate investment and advisory firm that invests in and manages assets with a focus on commercial real estate and infrastructure. Provides advisory services for optimizing real estate portfolios and facilitating real estate transactions.
Brickman Associates
- President
- Bruce S. Brickman
- Location
- Connecticut
- Established
- 1993
- Business Overview
- Real estate firm based in New York.
Manages assets for institutional investors and High Net Worth individuals with a proprietary investment management platform. Also owns and administers commercial real estate.
Lawyers of Shimizu for transaction
DLA Piper
- Partner
- Michael T. Haworth
- Location
- New York State
- Established
- 2005
Nagashima Ohno & Tsunematsu NY LLP
- Partner
- Ryo Okubo
- Location
- New York State
- Established
- 2010
* The information contained in this news release is the current information on the date of publication. Please be aware that this information may have changed by the time you view it. Please contact the company to inquire for further details.