A New York developer has acquired an office building in Boston’s Leather District for $27.5 million, nearly twice the price it previously sold for in late 2013.
Clear Rock Properties acquired 201-207 South St., a 70,000-square-foot, 6-story office building, on Friday from Scarsdale, New York-based Meritage Properties LLC. Meritage paid $14 million for the property in December 2013, according to Suffolk County Registry of Deeds records.
Office rents in the neighborhood near South Station have risen into the low $40s as the buildings attract more tech companies seeking offices within walking distance of the MBTA’s Red Line.
Web development consultants Bocoup recently leased 10,000 square feet and moved into the building in mid-February. Under Meritage ownership, tenants signed more than 20,000 square feet of office leases, bringing occupancy up to 100 percent, said Bryan Sparkes, who serves as leasing agent for JLL along with Robert Jangro.
“It’s got a good, young energy and a mix of innovative companies,” Sparkes said.
Meritage added 4,000 square feet of office space in a converted storage area and renovated the facade, entryway, elevators and lobby, according to the company’s website. The investment paid off in an increase in in-place rents from $25 to nearly $40 per square foot, according to Meritage. JLL’s capital markets team represented Meritage in the sale.
New York-based developer Clear Rock Properties invests primarily in office buildings in the Boston, New York and Washington, D.C. markets. Locally, it also owns 485 Massachusetts Ave., a 40,000-square-foot office building in Cambridge’s Central Square.
