BOSTON—Ashkenazy Acquisition Corp. has closed on the purchase of the long-term lease of South Station here from Equity Office.
The New York City-based private real estate investment firm reportedly paid between $119 million to $125 million for the 98-year lease of one of Boston’s most recognizable buildings, according to published reports.
South Station services more than 23.8 million passengers annually and 75,000 daily traveling on the MBTA Red and Silver lines and Amtrak.
More than 59,000 square feet of retail anchors the transportation complex. The property also features more than 100,000 square feet of office space. A spokesperson for Ashkenazy had no comment on the reported sale price of the long-term lease.
Adjacent to South Station, developer Hines is looking to develop a 51-story mixed-use property above the train tracks at South Station.
“It is fitting that AAC is taking over another of Boston’s most beloved landmarks, with the Rose Kennedy Greenway anchoring South Station at one end, and Faneuil Hall at the other,” says Michael Alpert, president at AAC. “The synergies between the properties will assist us in our management efforts and our plans to make this a sustainable asset for the next 98 years and beyond.”
Ashkenazy also owns and operates Faneuil Hall Marketplace in Boston as well as Union Station in Washington, DC. Among some of its other chief holdings include 625 Madison Ave. in New York City, Bayside Marketplace in Miami and Barneys New York in New York and Los Angeles. Its real estate portfolio is valued at more than $10 billion.
AAC has operated Boston’s Faneuil Hall Marketplace for the past six years, and has launched a renovation program for the famed marketplace that includes an enhanced public realm, significant capital improvements and upgrades designed to increase activity at the property.
Last month, Ashkenazy Acquisition purchased the famed Grosvenor House hotel in London. Published reports estimated the purchase could have run as high as $650 million.