A 540,000-square-foot Back Bay office building known as the Park Square Building is now in the hands of a lender that placed the winning bid at an auction Tuesday, the Boston Business Journal reported. LNR Partners bid $95 million to take control of the property at 31 St. James Ave., for which it became special servicer in 2024.
The Business Journal reported two years ago that a $160-million loan backing the property transferred to special servicing due to cash flow issues that began after the 2022 departure of WeWork Inc. from the Park Square Building, where it leased 136,500 square feet. Another tenant, Bay State College, closed down in 2023.
When the property transferred to special servicing, it was only 42% occupied, according to the Business Journal. The previous lender was Bank of America, which provided the $160-million mortgage in 2017, some 20 years after former owner Capital Partners acquired the property.
Photo courtesy of Yardi Matrix.
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