BGO and Synergy Strengthen Their Commitment to Center Plaza in Boston with $375 million Loan Extension
BOSTON, MA (September 3, 2024) – BGO, a leading global real estate investment manager, and Synergy, a prominent real estate investor, operator, and manager, are pleased to announce a $375 million four-year loan extension for Center Plaza. This transaction, which was executed in a particularly challenging lending environment, underscores the strength of the partnership and its commitment and long-term outlook for Center Plaza as a premier office asset and destination for top tenants in Boston.
Center Plaza, located in downtown Boston adjacent to the newly renovated Boston City Hall Plaza and across from Government Center Station, is renowned for its accessibility, modern amenities, and prime location as a workplace and retail asset. The LEED Gold-certified property currently boasts a 90% leased status, significantly surpassing the city's average office leased rate, which reached 79.5% in downtown Boston in the second quarter of 2024, according to Center Plaza’s brokerage team, Newmark. In the past 12 months, Synergy executed eight lease agreements at the asset totaling 136,000 square feet, including 117,000 square feet of renewals and 18,000 square feet of new deals.
David Greaney, CEO of Synergy, stated, "Our ability to secure this financing in such a challenging market environment is a testament to both the strength of the partnership and of the asset. Center Plaza’s 90% occupancy rate proves our capability to execute and maintain top-tier assets even in tough conditions. We are committed to continuing our investment in this unique asset, ensuring it remains a premier destination for tenants in downtown Boston."
Matthew Cervino, Managing Partner, BGO, commented, "This extension reflects Synergy and BGO’s shared commitment and high conviction in the considerable attributes of Center Plaza that make it a property of choice for leading tenants in Boston. We believe in this asset and its strategic importance in the heart of the city and are confident that our joint efforts will contribute significantly to the success and sustainability of Center Plaza for many years to come.”
Center Plaza’s top-tier amenity package includes a lobby attendant, onsite property management, communal outdoor and lobby spaces, a state-of-the-art fitness center, and diverse restaurant offerings including The Dubliner and Caveau. The property is located in a thriving downtown submarket, highlighted by recent events held like the Celtics NBA Championship parade. Move-in ready spaces are available for prospective tenants, with current vacancies of 24,993 square feet and 19,150 square feet, respectively.
Renovated in 2020, Center Plaza comprises 741,238 square feet of office and retail space, along with a 575-space parking garage. The property features three interconnected buildings—CP1, CP2, and CP3—boasting nearly 900 feet of frontage along Cambridge Street in downtown Boston.
ABOUT BGO
BGO is a leading, global real estate investment management advisor, real estate lender, and a globally recognized provider of real estate services. BGO serves the interests of more than 750 institutional clients with expertise in the asset management of office, industrial, multi-residential, retail and hospitality property across the globe. BGO has offices in 27 cities across thirteen countries with deep, local knowledge, experience, and extensive networks in the regions where we invest in and manage real estate assets on behalf of our clients in primary, secondary and co-investment markets. BGO is a part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life.
For more information, please visit www.bgo.com
ABOUT SYNERGY
Synergy is one of the largest and most active commercial landlords in Massachusetts and the largest local private owner of downtown Boston office buildings. The firm is well-capitalized, with a strong reputation for execution and flexibility. Over 600 companies and organizations are located in Synergy buildings. Synergy’s owned and managed portfolio of premier office, retail, multifamily and parking assets space totals eight million square feet. The firm is an active participant in the Greater Boston business and philanthropic communities. Synergy has been recognized as Landlord of the Year by the GBREB Commercial Brokers Association (CBA). Learn more at synergyboston.com.
