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LNR Partners Takes Ownership of Back Bay Offices in Special Servicing
A 540,000-square-foot Back Bay office building known as the Park Square Building is now in the hands of a lender that placed the winning bid at an auction Tuesday, the Boston Business Journal reported. Starwood Capital Partners subsidiary LNR Partners bid $95 million to take control of the property at 31 St. James Ave., for which it became special servicer in 2024.
The Business Journal reported in 2024 that a $160-million loan backing the property transferred to special servicing due to cash flow issues that began after WeWork Inc.’s 2022 departure from the Park Square Building, where it leased 136,500 square feet. Another tenant, Bay State College, closed down in 2023.
When the property transferred to special servicing, it was 42% occupied, according to the Business Journal. The previous lender was Bank of America, which provided the $160-million mortgage in 2017, 20 years after former owner Capital Partners acquired the property.
- ◦Sale/Acquisition
