One Financial Plaza, a landmark skyscraper in downtown Providence, has been acquired by a New York-based joint venture for almost $66 million.
Stamford, Conn.-based GE Asset Management and Fairfield, Conn.-based Commonwealth Ventures LLC completed their sale of the building on May 25 to Meritage Properties, a real estate firm in Scarsdale, N.Y., and the New York City-based investment firm Avenue Capital Group.
The 28-story, 322,000-square-foot building at the intersection of Westminster and Exchange streets, off Kennedy Plaza, sold for $65,650,000.
“We have been focused on Providence for some time,” said Andy Nathan, a principal of Meritage Properties. “Providence benefits from a superior amenities base, excellent quality of life and convenient access to Boston, Hartford and New York City. The city has undergone a significant transformation over the past several years, with the infrastructure now in place to continue growing for decades to come.”
One Financial Plaza, originally known as the Hospital Trust Tower, was built in the early 1970s to house the institution responsible for funding Rhode Island Hospital. The major tenants in the building are Edwards Angell Palmer & Dodge, Sovereign Bank, Bank of America and Morgan Stanley.
The building currently has about 28,000 square feet of vacant Class A office space, including a full floor with 12,925 square feet of contiguous office space, according to CB Richard Ellis/New England, whose Providence office brokered the deal. CBRE/New England will continue to handle the property’s leasing and property management.
Debt financing for the deal was arranged by Ed Finnegan of Holiday Fenoglio Fowler in coordination with Michael Sherman of CBRE Melody.
“We are genuinely excited about this investment opportunity, which is an ideal strategic fit to our existing portfolio,” said Arthur DellaSalla, managing director of Meritage Properties, which owns properties from Boston to Washington, D.C.
Over the past three years, Meritage Properties affiliates have acquired interests in 19 properties throughout the Northeast valued at more than $550 million, according to the firm’s Web site.
