NH Investment to acquire $100 mn debt of landmark Boston building

(Updated: Some financing details and background were removed at the request of the sources.)

NH Investment & Securities Co. Ltd. will underwrite $100 million worth of subordinated  debts backed by State Street Bank’s headquarters building in Boston, known as State Street Financial Center.

The debts represent the entire subordinated tranche, or mezzanine III, of around 1 trillion won debts originated by the owners of the 36-story landmark office tower in Boston’s financial district, according to investment banking sources on May 18. 

State Street Bank and law firm K&L Gates LLP occupy the property.

The  office tower, built in 2003, has an assessed value of 1.4 trillion won.

NH Investment, a unit of South Korea’s national agricultural cooperative, will purchase the debts through a fund run by KTB Asset Management Co. Ltd.

A real estate industry source told the Korean Investors that the owners of the 97,200-square-meter building maintain a 25% stake, so the expected risk-adjusted return is relatively high.

By Daehun Kim

daepun@hankyung.com