KKR, Synergy Acquire Skanska's Two Drydock In Seaport In $234.5M Deal
A global investor and a major Boston office landlord are spending $234.5M to acquire Skanska’s latest Seaport office project.
KKR and Boston-based Synergy Investments are taking over Two Drydock, the Skanska-built 13-story, 235K SF office building in the Seaport. The transaction is among the largest 2021 office deals in Boston and marks KKR’s second nine-figure acquisition in the Seaport this year.
“Under the management of the great team at Synergy, this modern, highly-amenitized office building is well-positioned to cater to a wide range of tenants and we believe it will benefit from the sustained strong demand in the Seaport for top-quality office space,” KKR Managing Director Daniel Rudin said in a statement.
KKR is making the investment through its KKR Real Estate Partners Americas III fund, it said. The transaction was not posted in Suffolk County land records Tuesday morning.
Two Drydock, which Skanska completed last year, includes 7K SF of ground-floor retail, including an incoming Lord Hobo beer hall, a 10K SF outdoor plaza, and unobstructed views of Downtown Boston and the harbor. The $128M building was designed by SGA and broke ground in 2018. In September, the building was 71% leased to tech-oriented tenants and Skanska suggested life sciences tenants could move into some of the building’s vacant space across 27K SF floor plates.
The sale is the third Seaport tower Skanska has built and subsequently sold in the past decade; Skanska also sold its 121 Seaport and 101 Seaport office towers.
KKR in July spent $332M for NEMA Boston, a Crescent Heights-built, 21-story luxury apartment tower across the Seaport at 399 Congress St. The international investor spent $802K per unit, among the most expensive multifamily transactions of the year in Boston. The Two Drydock acquisition is one of the largest for a single office asset in Boston this year, dwarfed by the record-breaking $825M One Memorial Drive sale.
Synergy, one of Boston’s largest office landlords, will manage the property, the companies said. Newmark represented Skanska in the transaction.