Yet another Boston office tower sells cheap – this time, it’s 99 High St.

Real Estate

The 32-story tower sold for 17% less than its 2005 purchase price.

Boston real estate firm Synergy closed on its acquisition of the 32-story tower at 99 High St. on Thursday for $227 million. 

According to Suffolk County property records, the firm is taking over the 730,000-square-foot tower for 17% less than the $273 million the building’s previous owner paid in 2005, and $100 million less than its assessed value of $373.7 million. 

The tower sits at the corner of High, Congress, and Purchase streets and is near South Station, the Rose Kennedy Greenway, and is accessible to Interstates 90 and 93. 

Synergy in a press release said that the tower was constructed in 1971, but has undergone a lobby renovation in 2019 and over $24 million in capital improvements over the past decade. 

The company says the building is 78% leased, with 32 tenants, including Mercer, Marsh McLennan, AIG, and Karuna Therapeutics. 

“The addition of 99 High Street to our portfolio solidifies Synergy’s prominence as one of Downtown Boston’s premier owners and operators,” said David Greaney, founder and CEO of Synergy, in a statement. “Synergy will continue to invest in high-quality assets in prime locations across the city.” 

Synergy has bought several properties at a discount. As first reported by the Boston Globe, Synergy acquired 101 Arch St. for 36% less than the building’s prior purchase price, 1 Liberty Square for 17% less, and 179 Lincoln for 40% less. 

The trend of declining values for office buildings is a growing concern, due to the implications it could have for Boston’s property tax base, which is needed to fund a $4.8 billion budget. 

More than two-thirds of the city’s revenue comes from property taxes, with a large portion coming from commercial buildings. If values fall, so could the revenues needed to pay for city services. 

One upside: Lower sale prices mean lower costs for tenants. The new owners of 399 Washington St., which sold this month for 80% less than its 2017 price, now have room to cut rents and fill the vacant ground-floor space.