The family office of a European investor has “something stunning” planned for a building along Boston Harbor. What that will be is anyone’s guess, but there are hints.
JAJ Investment Group, the family office of Frenchman Jacques Chahine, acquired 400 Atlantic Avenue in Beantown for $30 million, the Boston Business Journal reported. The six-story, 100,000-square-foot building is vacant, giving JAJ the opportunity to redevelop the office.
The sale price breaks down to $300 per square foot. This is JAJ’s first deal in Boston.
The seller was an affiliate of UBS Group, which purchased the property a decade ago for $50 million. The company declined to comment to the publication; a JAJ executive claimed UBS was acting as the representative of another family office.
UBS nearly offloaded the property to Synergy before the prospective buyer walked away, dissatisfied with the potential risk-adjusted return even with interested tenants. Compounding matters for UBS, a $25 million mortgage originated by the Zuellig Group matured last month, making the loan nonperforming; no debt was included in the sale to JAJ.
The property formerly housed the law firm Goulston & Storrs, but the company recently relocated to 100,000 square feet at One Post Office Square. As of last year, the annual base rent at 400 Atlantic Avenue was $4.2 million.
With that, JAJ may look to reimagine the property. Head of U.S. investment Agathe Chahine said the company was “exploring a couple of options” to do “something stunning,” but admitted an office wasn’t likely in the game plan.
Where does that leave JAJ and its waterfront acquisition? The Luxembourg-based firm, which is mostly involved in European real estate, has a portfolio consisting of offices and hotels. Some of its most notable projects, including a five-star converted palace in Lisbon and a forthcoming 150-room property in Miami Beach, are hotels.
There’s harborfront access at 400 Atlantic Avenue, though it’s next to another hospitality property, the Boston Harbor Hotel.
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