March 31, 2009

Creditors buy John Hancock Tower for $660M

A partnership that already holds some of the debt in Boston's tallest building bought the John Hancock Tower for $660.6 million Tuesday at auction.

Normandy Real Estate Partners and Five Mile Capital Partners were the only bidders at the 10-minute foreclosure auction in New York, The Boston Globe reported.

Broadway Partners bought the Hancock for $1.3 billion in 2006, when the real estate boom was still going strong. Broadway defaulted on some of its debt previously this year.

The Hancock, designed by I.M. Pei and Henry M. Cobb, was finished in 1976. In its early days, it was nicknamed the Plywood Tower after large panes of window glass blew out in high winds, a problem that was eventually solved.

The winning bidders initiated the foreclosure, the Globe said.

Normandy/Five Mile is pleased that our partnership has been designated as the winning bidder of the UCC auctions for the equity interests in two iconic properties -- Boston's John Hancock Tower and 10 Universal City Plaza in Universal City, Calif., the companies said in a statement from Morristown, N.J.