Market Insights

The Pension Giant Dominating Commercial Real Estate Finance in Boston

The Teachers Insurance & Annuity Association of America was the top commercial real estate originator in Boston, CrediFi found in its Boston Lending Spotlight for H1 2017.

TIAA, one of the largest pension funds in the U.S., originated two of the largest loans for Boston commercial properties in that period.

One of those loans, for $380 million ($340 per square foot) financed One Federal St., a 38-story, 1.1-million-square-foot office building in downtown Boston.

The LEED Gold building is owned by New York-Based real estate investment firm Tishman Speyer, and is home to tenants including JPMorgan, U.S. Bank and the Harvard Club. (The TIAA permanent loan replaces a $330 million short-term refinancing from Deutsche Bank last year, which Tishman used to repay its initial 10-year, $280M acquisition loan from Lehman Brothers in 2006.)

The other big TIAA loan is a $135 million loan for Troy Boston, a luxury apartment building at 275 Albany St. in Boston’s South End.

The No. 2 Boston lender was New York Life Insurance, which issued over $200 million in commercial real estate loans in the first half of 2017.

To download the entire Lending Spotlight, click here.

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