Key Takeaways
- • KKR signed a 15-year lease for 132,529 square feet at Two International Place in Boston, representing one of the most significant office leasing deals of the year and KKR's first downtown Boston office location.
- • The lease is part of a $100 million reinvestment and renovation project at International Place, undertaken by developer The Chiofaro Company in partnership with PGIM Real Estate, signaling renewed confidence in downtown Boston's office market.
- • PGIM's real estate business continues to expand its Boston portfolio with concurrent financing activity, including a $132 million floating-rate loan to The Abbey Group for The Viridian multifamily property in Fenway (342 units) and prior investments across the city.
- • KKR's move reflects the firm's expanding Boston presence, particularly within its insurance division, which maintains over 300 employees in the region and requires modern, Class A office space to support continued growth.
- • Two International Place is a 35-story, 876,195-square-foot tower that is part of the larger 1.8 million-square-foot International Place campus; PGIM acquired the tower in 2005 and has positioned it as a premier downtown waterfront asset with proximity to Logan Airport, transit hubs, and key business districts.
Summary
KKR has executed a landmark 15-year lease agreement for 132,529 square feet at Two International Place in downtown Boston, marking the firm's commitment to establishing its first dedicated downtown office location in the city. The lease was negotiated and brokered by JLL, Newmark, and Cushman & Wakefield, with The Chiofaro Company serving as the building's leasing manager and co-developer. This transaction represents one of the largest office leasing deals in Boston for the current period and underscores renewed institutional demand for high-quality, modernized office environments in the downtown core.
The lease signing coincides with the completion of a $100 million reinvestment project at International Place, a transformative capital improvement initiative designed by global architecture firm Gensler and undertaken by PGIM Real Estate and The Chiofaro Company. The renovation reflects a strategic bet on Boston's long-term office market resilience and the competitive advantage of maintaining premium, future-ready workplaces. According to Joanna Mulford, managing director and senior portfolio manager for PGIM's real estate business, the deal demonstrates "the appeal of Boston's office market and the strong demand for modern, future-ready workplaces," positioning the city as a dynamic business hub known for talent and innovation.
Two International Place is a 35-story tower totaling 876,195 square feet and forms part of the larger International Place campus designed by renowned architect Philip Johnson. The broader campus encompasses 1.8 million square feet of office and retail space across two towers, with a 46-story companion building. PGIM acquired the tower in 2005 and has maintained an active management and capital deployment strategy. The property's waterfront location offers tenants proximity to Rowes Wharf, the Aquarium and South Street subway stations, and Boston Logan International Airport (approximately 3 miles away), with direct access to major business and cultural amenities including Boston Common.
KKR's decision to anchor this space reflects the firm's expanding footprint in Boston, particularly within its insurance business division, which employs over 300 professionals in the region. The lease enables the firm to consolidate operations and support continued expansion within a single, modern, centrally-located facility. KKR joins an existing tenant roster that includes Portolan Capital Management, Whale Rock Capital, Needham, and retail anchor Kane's Donuts, demonstrating the tower's mixed-use appeal and diverse tenant base. PGIM's broader Boston real estate activity extends beyond the KKR transaction, with the firm simultaneously providing $132 million in floating-rate acquisition financing to The Abbey Group for The Viridian, a 342-unit Class A multifamily high-rise in Fenway, further demonstrating the company's strategic commitment to major Boston asset classes during a period of renewed urban real estate demand.
The lease signing coincides with the completion of a $100 million reinvestment project at International Place, a transformative capital improvement initiative designed by global architecture firm Gensler and undertaken by PGIM Real Estate and The Chiofaro Company. The renovation reflects a strategic bet on Boston's long-term office market resilience and the competitive advantage of maintaining premium, future-ready workplaces. According to Joanna Mulford, managing director and senior portfolio manager for PGIM's real estate business, the deal demonstrates "the appeal of Boston's office market and the strong demand for modern, future-ready workplaces," positioning the city as a dynamic business hub known for talent and innovation.
Two International Place is a 35-story tower totaling 876,195 square feet and forms part of the larger International Place campus designed by renowned architect Philip Johnson. The broader campus encompasses 1.8 million square feet of office and retail space across two towers, with a 46-story companion building. PGIM acquired the tower in 2005 and has maintained an active management and capital deployment strategy. The property's waterfront location offers tenants proximity to Rowes Wharf, the Aquarium and South Street subway stations, and Boston Logan International Airport (approximately 3 miles away), with direct access to major business and cultural amenities including Boston Common.
KKR's decision to anchor this space reflects the firm's expanding footprint in Boston, particularly within its insurance business division, which employs over 300 professionals in the region. The lease enables the firm to consolidate operations and support continued expansion within a single, modern, centrally-located facility. KKR joins an existing tenant roster that includes Portolan Capital Management, Whale Rock Capital, Needham, and retail anchor Kane's Donuts, demonstrating the tower's mixed-use appeal and diverse tenant base. PGIM's broader Boston real estate activity extends beyond the KKR transaction, with the firm simultaneously providing $132 million in floating-rate acquisition financing to The Abbey Group for The Viridian, a 342-unit Class A multifamily high-rise in Fenway, further demonstrating the company's strategic commitment to major Boston asset classes during a period of renewed urban real estate demand.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.