December
2008
Back Bay News
by Anthony, 
By Joe Clements
BOSTON—The real estate sales market is limping to finish one of its slowest quarters this decade, but there is at least one area charging ahead at breakneck speed—Back Bay retail. Particularly in one transaction that hit an astounding $1,270 per sf—double the amount paid last autumn—commercial properties in and around Boylston and Newbury Streets continue to appreciate in value rapidly, especially those that can accommodate retail tenants.
A partnership led by Taurus Investment Holdings is confirming the purchase in two separate deals of 899 Boylston St. and 329 Newbury St. for a collective total exceeding $18 million. The partnership includes UrbanMeritage and Anglo Irish Bank, which has set aside $150 million for the program. The 329 Newbury St. investment brings the total sale of commercial properties on the street in excess of $35 million for the year. While well below the $200 million-plus spent in 2007, observers say it is an impressive figure considering the dour sales pace seen elsewhere in New England in 2008.New England Property Report has previously reported the latest investments by the Taurus fund, but the buyers and broker Cushman & Wakefield are only now acknowledging the details. Taurus is said to have 292-296 Newbury St. under agreement, as reflected in the earlier articles, although no official word on that has yet been forthcoming.
Containing a mix of retail and office space, the three-story 899 Boylston St. sold for $9.65 million, or $593 per sf. The seller, Gubbins/McMahon Boylston St. LP, is an Irish investment group that paid $7.5 million in 2004, or $461 per sf. “We are very happy to be able to complete the sale of this extremely desirable asset for out client,” especially given the current turmoil in the capital markets,” C&W Senior Director Geoffrey Millerd says in a release confirming the successful outcome to the marketing campaign that began this autumn. The team representing Gubbins/McMahon and procuring the buyer, TA 899 Boylston St. LP, also included Capital Markets Group leader Robert E. Griffin Jr. and Michael d’Hemecourt.
The same trio negotiated the sale of 329 Newbury St. on behalf of Samuels & Associates, a well-known real estate developer and investor that appears to have made a dramatic return after paying $3.8 million for the building in October 2007. According to Millerd, the pricing “demonstrates the market’s continued demand for irreplaceable retail,” as evidenced by “intense” competition among both foreign and domestic suitors to win the asset. It is fully leased to Madewell Inc., a clothing brand that owner JCrew is launching as a high-quality denim boutique store. The Newbury Street store is the concept’s 11th unit, including other locations in Las Vegas, Los Angeles and New York City.
Constructed in 1899, 329 Newbury St. is a brownstone that has a fully built out basement and three floors. As with the nearby 899 Boylston St., 329 Newbury St. is close to two major subway lines, as well as the Hynes Convention Center, Prudential Center and Fenway Park. “We are pleased to add 329 Newbury St. to our extensive portfolio on Newbury Street,” Taurus President and CEO Peter A. Merrigan says in the release, and notes that the fund has now spent more than $120 million in the Back Bay district, with 23 properties now under its purview.
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