Munich buyer sets sights on One Winthrop Square - Boston Business Journal:

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Two sources familiar with the deal said has been selected as a If building owner reaches a dealwith GLL, One Winthropl would be the first building to sell in downtowb Boston this year. RREEF declined to as did EdwardMaher Jr. of , whosew company is selling the assetfor RREEF. GLL’s bid is abouty $20 million, sources “They are a logical buyer,” said Lisa head of the investmentg sales teamat , which is not involver in the transaction. “They have money to buy in A callto GLL’s spokesmanb was not immediately returned. GLL made its entru into the Boston market when it purchase d 200State St.
for $167 million last September and then followedx up with 70Franklin St. in October for $36 It’s hard to put value on commercial property when no propertuis selling, so real estate investors have been following the sale of the 114,000-square-foo t One Winthrop since one of the world’s largesyt real estate investment advisers, put the propertyt on the market for sale in Trophy assets stopped selling long ago with a few exceptions, such as the 50 percenf stake in One Beacon that German insurer purchased earlier this year from LLC. The deal was in the makinf for several months before closing in Januartyfor $570 million.
“I think it will be a greaft indicator of valuationsof core-type assets,” Brian Kavoogian, presidentr of LLC said of One Winthrop. “Thed large deal market will be priced very differentlyu from the smalldeal market.” Kavoogian, who bid on the property but estimated that prices have come down 20 percent from the peak abouty 18 months ago. RREEF put One Winthropp on the market witha $25 milliojn price tag.
Bidders interested in the propertyh reportedly shaved off as muchas $10 million or 40 percent — off of the asking “I think (the market’s) still in a state of People are looking for pricing One Winthrop Square will be a new pricingf benchmark,” Campoli said. The buildinyg is part of the RREEF America REITIII Inc. fund and was purchaseed by RREEF in 2005 as part ofa $500 million portfolio of assetsd from . The portfolio which included 32 propertiesin Massachusetts, was one of the largest sale transactionse in Boston at the time.