Norges Buys Out Partners in Office Venture for $1B

Norges Bank Investment Management (NBIM) acquired an additional 50.1% interest to take full ownership of eight office properties in Boston, San Francisco, and Washington, DC from subsidiaries of TIAA for $976.8 million. Spanning 3,655,922 square feet, the portfolio is valued at $1,949,700,000. Longtime partner Nuveen Real Estate represented the sellers and will continue managing the properties.

The eight office properties include 501 Boylston St, and 33 Arch St. in Boston; Foundry Square 2 (405 Howard St.) and 888 Brannan St. in San Francisco; and 800 17th St., Evening Star (1101 Pennsylvania Ave.), Franklin Square (1300 I St.), and 25 Massachusetts Ave. in DC. 501 Boylston is encumbered by $194.9 million in debt.

“In a period of heightened dislocation in the office sector, we see this as an opportune moment to invest,” said Per Løken, global co-head unlisted real estate at NBIM. “By taking full ownership of nearly 3.7 million square feet across Boston, San Francisco, and Washington, DC, we’re demonstrating our conviction that well-located, high-quality office buildings will continue to deliver long-term value.”

Pictured: 25 Massachusetts Ave. Photo courtesy of Republic Properties.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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