Challenge: Because of Ropes & Gray’s size and need for high-rise space and flexible expansion rights for its Boston office, there were few existing buildings that met its specifications. The alternatives were to remain at One International Place, relocate to an existing building or relocate to one of the new developments in the pipeline.
Strategy: After extensive due diligence, including property tours, fit planning, financial analysis and demographic/location studies, the firm concluded that its best option was to relocate to the Prudential Center, which had available space in a high-rise contiguous block with rectangular floorplates that were well-suited to Ropes & Gray’s planning and layout. Additionally, due to the size of the Prudential complex, there were many opportunities to accommodate future growth.
Result: The parties worked efficiently and cooperatively to structure a transaction that was acceptable to all involved. The transaction involved a comprehensive long-term lease, complex growth options and the use of the Internal Revenue Code §467 for the tax treatment of the rental payments.