Boston’s One Lincoln St. Sells for $400 Million at Auction

News Summary

In an unusual auction held on the sidewalk, Boston’s One Lincoln St. building was sold for $400 million, significantly lower than its previous mortgage value of $763 million. The auction, lasting just 82 seconds, saw bidders brave the elements, with initial bids starting at $500 million. Following a quick series of price drops, the final bid was accepted amidst anticipation. This sale marks a significant moment in Boston’s shifting real estate market, with a legal hearing on April 4 potentially influencing the outcome.

Boston’s One Lincoln St. Fetches $400 Million at Unusual Auction

In a city known for its rich history and buzzing financial heartbeat, Boston witnessed a spectacle like no other this past Friday. At around 11 a.m., the much-discussed One Lincoln St., a towering 36-story office building nestled in the heart of the Financial District, was auctioned off right on the sidewalk. What a way to open the weekend!

82 Seconds of Bidding Excitement

The auction was a quick one, lasting just 82 seconds and attracting around 40 brave souls who faced the blustery weather to be part of the event. Dramatic? Absolutely! But what followed was even more surprising. The building fetched a final bid of $400 million, which is a far cry from the $763 million mortgage that the previous owner secured just three years ago. Talk about a drop in value!

An Unconventional Auction Experience

pre-recorded legal notice that ran over 10 minutes at an exciting 1.5 speed. If you were there, you surely felt the anticipation in the air!

Initially, bidders were met with an opening bid set at $500 million, but no one was ready to jump in at that figure. After a few tense moments, the bid was lowered to $200 million, then to $100 million, but still, silence from the crowd. Finally, the auction reached the $400 million mark, and promptly, this bid was accepted, marking the end of what might have been a nail-biting experience for many.

What’s Next for One Lincoln St.?

April 4 looms on the horizon, and its outcome could influence the final terms of the transaction. With a twist like this, the story of One Lincoln St. is far from over!

A Glimpse into Its Troubled Past

State Street Corp., once a major tenant, vacated the premises in September 2023 in favor of moving to One Congress St. Even WeWork, the largest occupant after State Street, downsized its presence. At this point, Boston’s office market is feeling the pinch, with an availability rate reaching around 25%, significantly reducing the attractiveness for potential future bidders.

Shifting Valuations

Fortis Property Group has been embroiled in legal battles in Brooklyn, NY, aiming to halt the auction. Compounded with this, a recent city assessment has pegged the value at $588 million, which Fortis disputes enthusiastically. Within all this complexity, the recent auction may serve as a benchmark for the shifting values of office buildings in downtown Boston.

Conclusion

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HERE Resources

Additional Resources

• Boston Globe: One Lincoln Boston Auction
• Wikipedia: Boston
• The Real Deal: One Lincoln Headed to Auction
• Google Search: One Lincoln St Boston Skyscraper
• Boston Real Estate Times: One Lincoln Street Auctioned
• Google Scholar: Boston Office Market Valuation
• Bisnow: This Week’s Boston Deal Sheet
• Encyclopedia Britannica: Boston Office Market
• MSN: State Street’s Office Tower Auction
• Google News: Boston Office Towers

Author: RISadlog