Starwood's LNR Submits Winning $95M Bid For Back Bay Office
A Back Bay office building was handed to the lender following its Tuesday auction.
LNR Partners, a subsidiary of Starwood Property Trust, made the winning bid of $95M for the Park Square Building at 31 St. James Ave., the Boston Business Journal reported.
The lender oversaw special servicing on the property's loan to the former owner, New York-based Capital Properties. The real estate was last assessed at $119M, according to public records.
LNR Partners became the special servicer in 2024 after Capital Properties missed a monthly payment for the $160M loan tied to the building. The property's lender at the time was Bank of America.
The 540K SF, 11-story office building was constructed in 1922.
In 2016, Capital Properties secured a $133M loan to pay down debt. The financing was also used to renovate the lobby, common areas and office space, Commercial Property Executive reported. At the time, the building was 96% leased.
Although the property has several tenants, including consulates for Colombia and Portugal, it lost two major tenants in 2023. By mid-2024, the property was only 42% occupied, the BBJ reported.
Coworking operator WeWork exited its 119K SF lease in the first quarter of 2023 amid its bankruptcy restructuring, and Bay State College vacated its space after the college lost accreditation in the summer of 2023.
Capital Properties owns other properties around Boston, including 133 Federal St., The Esplanade Condominiums in Cambridge, 360 Newbury St. and the Custom House Block and Gardiner Building at Long Wharf, according to its website.
