One Financial Plaza in Providence Sold at Huge Discount
Tuesday, August 21, 2018
This comes just days after the announcement by Paolino Properties that they purchased 380 Westminster Street at less than half the accessed value. Paolino Properties purchased the 148,000 square foot building for $9.5 million.
The Westminster Street building was last sold in 2008 for $22 million and is assessed by the City of Providence with a value of $19.5 million.
This raises questions about the City of Providence's tax structure. Providence has one of the five highest commercial tax rates in the United States.
One Financial Plaza
The announcement came on Monday morning, "CBRE is pleased to announce the sale of One Financial Plaza in Providence, RI. Jeffrey Dunne, Steven Bardsley and Travis Langer of CBRE Institutional Properties, in collaboration with Alden Anderson of CBRE’s Providence, R.I. office represented Meritage Properties in the sale. The team also procured the buyer, JFR Global Investments."
The building once known as Hospital Trust Tower sold three times in four years in the mid-2000s. First, Fleet sold to Gilbane for $33,750,000 in 2003 who in turn flipped the property to an investment group involving Dick Galvin. That sale in 2005 was for $46,200,000.
That group sold the building again in 2007 for $65,650,000, but that is where the problems started. First, the Great Recession hit, and then turn over and shrinkage of top tenants like Edwards and Angell (now Locke Lord).
According to the announcement, "One Financial Plaza’s central downtown location, proximity to retail, towering 28 stories and investment-grade quality tenancy makes it Providence’s premier office property. Within minutes tenant employees can reach: the State House Capitol building; Providence Place Mall; I-95/I-195; the Kennedy Plaza commuter transit station; and more than 2,500 new residential units."
This story was first reported 8/20/18 9:10 AM