Synergy Acquires 99 High St. Tower for $227 Million

BOSTON, Massachusetts — In a significant move for the downtown office market, Synergy, a Boston real estate firm, completed its purchase of the 32-story tower at 99 High St. on Thursday for $227 million. The acquisition marks a pivotal moment, being one of the few major transactions in the office sector since the COVID-19 pandemic.

The deal, as recorded in Suffolk County property records, involves Synergy assuming the existing mortgage from MetLife Real Estate Lending LLC. The transaction reflects a 17% decrease from the $273 million Nuveen, the previous owner, paid for the building two decades ago.

Synergy CEO Dave Greaney described the property as “one of the best buildings on the market that’s not new construction.” Located along the Rose Fitzgerald Kennedy Greenway, the tower encompasses 730,000 square feet and offers stunning views of the Boston Harbor and Fort Point Channel. Currently, it has a 78% occupancy rate with notable tenants like Mercer, Marsh McLennan, AIG, and Karuna Therapeutics.

Although Synergy secured the winning bid back in November, the complexities of the deal delayed its closing until this week. The $227 million price translates to approximately $311 per square foot, which is notably lower than what TIAA paid in 2005.

Dion Sorrentino, associate director of market analytics at CoStar Group in Boston, noted, “That new per-square-foot rate in the low $300s is turning out to be the new normal.” He emphasized the building’s prime location, access to transit, and solid tenant base as key factors that justify the price.

As more office properties hit the market this year, the implications for Boston’s property tax revenue are being closely monitored. Approximately two-thirds of city revenue stems from property taxes, and any decline in property values could impact the funding necessary for city services.

Since the pandemic, Synergy has been one of the few active buyers in the downtown office space. Their recent acquisitions include 101 Arch St., one of which sold for 36% less than its previous price, among others.

Greaney acknowledged the challenges of securing financing for office buildings but indicated that some investors are starting to see the sector as a viable opportunity again. “Institutional equity will always have a place in quality office assets in gateway cities,” he asserted.

Nuveen has invested more than $24 million in renovations at 99 High St., including a lobby redesign completed in 2019. A leasing brochure highlighted amenities like efficient elevators, a building app, and tenant appreciation events.

Greaney mentioned that 99 High St. is the tallest building Synergy has ever acquired, expressing interest in pursuing further opportunities in the office market. “I don’t think you’re going to see an avalanche of deals coming,” he noted, “but I do know of a half-dozen deals that are going to come on the market this year.”