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Bedford Street Office Building Sold For 63% Discount

An Office Building At 99 Bedford St. Is Set To Be Auctioned Off In November.

A five-story office building near South Station has sold at auction.

The 92K SF 99 Bedford St. office building sold for $19M to Boston investment firm Chevron Partners during a Nov. 5 auction, according to public records. Chevron bought the property in partnership with Capital Hall Partners.

"The sale of 99 Bedford reflects continued interest in well-located, boutique office assets," Chevron founding partner Marcel Safar said in an emailed statement to Bisnow. "Chevron Partners and Capital Hall Partners see opportunity in building on the property’s historic character through thoughtful design and operational upgrades that support long-term value."

Chevron said it plans to make several capital improvements to the building, including renovations to the lobby and tenant amenities, according to a press release. The renovations will also include a 9,600 SF spec suite for a new tenant to move in. Renovations are anticipated to be completed by 2026.

During the November auction, there were three bidders, including the lender and the city of Boston. The city bid $18.7M for the property with an eye toward it being a good office-to-residential conversion candidate, Boston.com reported.

Chevron bought the property from Credit Suisse, which made renovations to the building in 2020, according to the auctioneer. Credit Suisse acquired the property in 2019 for $50M.

The property's value was last assessed at $22M.

The firm is also embarking on another office renovation at 260 Newbury St. and another mixed-use building at 581 Boylston St., both in Back Bay. Chevron also has other commercial properties in its portfolio: 10 Winthrop Square and Sears' Crescent.

JLL brokered the transaction, and Cushman & Wakefield will act as the property management.

The sale joins several others in downtown Boston that are painting a grim picture for the city's Class-B and C office stock. Earlier this month, Synergy acquired a 159K SF office building for $22.5M, a fraction of its $64M assessed value, from H.N. Gorin Inc.

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