PROVIDENCE – Paolino Properties received approval Thursday in Providence Superior Court to purchase the six-story Federal Building at 380 Westminster St.
Under the sale agreement approved by Judge Michael Silverstein, Paolino Properties, through a limited liability company, will pay $15.3 million for the property, including $9.5 million for the building and $5.8 million in tenant space improvements.
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The closing has been set for early September, Paolino Properties announced in a news release. The purchase will be made by 380 Westminster Realty LLC.
“The Federal Building is a landmark property in the city and I am proud to ensure that the doors of this property stay open and it is managed and owned locally for years to come,” said Joseph R. Paolino Jr., the managing partner.
Built in 1982, the Federal Building covers 148,000 square feet and has several federal agencies as tenants, including the Internal Revenue Service, the Social Security Administration and the United States Secret Service. The building is fully occupied, according to Paolino.
The current owner, 380 Westminster Street LLC, purchased the building in December 2008 for $22 million.
The Arlington, Texas-based company entered state court mastership proceedings in May 2016, according to court records.
Paolino said the purchase is a strategic one. He owns more than 25 properties in Providence, including several adjacent sites and buildings. They include two parking lots behind the building and the One Weybosset Hill building which has Johnson & Wales University as a tenant.
Development of the parking lots is not imminent, he said, but the purchase of the Federal Building opens up possibilities. “It gives me flexibility if I’m looking to do further development on that land,” he said.
In addition, because he now has experience in working with the General Services Administration, he could expand into the government offices market by adding more federal tenants to his office buildings.
“They’re not going to go out of business,” he observed.
Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@pbn.com.
