Stake in Landmark Center is up for sale

By Casey Ross, Globe Staff

The owner of Landmark Center, a massive shopping and office complex near Fenway Park, is selling a stake in the marquee property, with its owners hoping to fetch up to $535 million, according to a source with knowledge of the transaction.

The complex is hitting the market as the commercial property sales begin to rebound after one of the worst slumps in decades. Landmark Center is seen as an attractive investment, as it boasts a strong stable of retail tenants, including Best Buy, Staples, and REI, the outdoor sports retailer.

The complex is currently owned by the Abbey Group of Boston, part owner of the Boston Celtics. Landmark Center is also home to Blue Cross Blue Shield of Massachusetts and leases space to Harvard University Medical School.

Executives with the Abbey Group said in a statement that debt in the building matures next year and needs to be replaced. They are looking to raise money to move forward with a proposed eight-story addition of Landmark Center, which still need permits from the city. If the firm does not receive an attractive offer, it could move to refinance the debt.

But the complex is expected to get heavy interest from pension funds and other large investors. Landmark Center contains 950,000 square feet of office and retail space and is almost fully leased. The Art Deco building was built in 1929 for Sears Roebuck and Co. and features a 200-foot tall tower. It was purchased in 1997 by Abbey Group, which undertook a $120 million renovation. The property also includes a 1,700-space parking garage and sports complex.

The sale of other large commercial properties have sparked bidding wars this year. There was fierce competition for One Brigham Circle, a much smaller complex in the nearby Longwood Medical Area that sold for $97 million.

Cushman & Wakefield, which handled the One Brigham sale, is also marketing Landmark Center.