In one of the largest deals this century in Boston, Fortis Property Group completed a $1 billion refinancing of its 1.1 million-square-foot One Lincoln office property.
The financing from an unnamed lender came upon the completion of a new 250,000-square-foot lease signing at the property with private equity firm HarbourVest Partners.
The refinancing proceeds will be used to repay existing debt and provide more than $200 million in capital to bolster the property’s appeal as an in-place working environment. Fortis is planning upgrades geared toward wellness and lifestyle amenities, as well as future leasing costs.
"We are reimagining the post-COVID office environment and One Lincoln signifies the beginning of a new era for workplaces in Boston," Fortis CEO Jonathan Landau said in a statement. "We both recognized the tremendous demand for luxury office space that is amenitized with unparalleled wellness and lifestyle driven experiences in today's office environment."
In addition to the loan closing, Fortis signed an office lease with HarbourVest Partners, establishing it as the new anchor tenant at the building. The Boston-based private equity firm signed a long-term lease for over 250,000 square feet of office space spread across 11 floors.
HarbourVest will move its Boston headquarters and all Boston-based employees to One Lincoln. As part of the lease agreement, HarbourVest will replace State Street Corp. as the building's namesake.
In early 2019, financial services giant State Street Global Advisors signed a lease for more than half the 1 million-square-foot One Congress office tower currently under construction in Boston.
HarbourVest expects to move into One Lincoln in 2025. The firm has over 650 employees in Boston and over 1,000 employees in 12 global offices.
Fortis did not immediately respond to requests for additional information on the financing arrangement.
The $1 billion financing could top the largest deal of the century in Boston. A search of CoStar data turned up only one other deal of similar magnitude. At the start of 2021, Alexandria Real Estate Equities borrowed $999.99 million to finance its purchase of the 401 Park Drive and 201 Brookline Ave.