Norges Bank Investment, manager of Norway's sovereign-wealth fund, has made another big play in U.S. commercial property. Norges and its joint-venture partner MetLife, Inc. acquired One Beacon Street, a 1.02 million-square-foot office building in Boston, from a joint venture of Beacon Capital Partners and insurer Allianz.
Norges manages Government Pension Fund - Global, also known as The Oil Fund, the world's largest sovereign wealth fund powered by a nation that is the fifth-largest oil exporter and third-largest gas exporter in the world. Norges secured a 47.5% interest in the $561.5 million purchase of the 34-story tower while MetLife will own 52.5%.
The LEED Platinum-certified One Beacon Street, with more than 1 million square feet of office space, was built in 1973 and renovated in 1991, according to CoStar information. It's about 85% leased, with the Massachusetts Housing Finance Agency, the University of Massachusetts, the University of Massachusetts Building Authority, Standard Life Investments (USA) Limited and JPMorgan Chase Bank among the major tenants.
It's the second property investment in Boston and the fourth overall for the venture, which grows the gross value of its property portfolio to $2.4 billion.
The three other properties in the joint venture’s portfolio are One Financial Center in Boston, District Center (formerly the Thurman Arnold Building) at 555 12th Street, NW, in Washington, D.C.; and 425 Market Street in San Francisco.
Please see CoStar COMPs #3077155 for more information on the transaction.