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N.Y. private equity firm inks major office lease in downtown Boston
The lease marks a significant step in the city’s post-pandemic office market recovery.
On Thursday, the private equity firm KKR announced that it is expanding its Boston presence with its first downtown office at Two International Place, marking a significant milestone for Boston’s office market.
According to a release, KKR signed a 15-year lease for 132,529 square feet. The global investment firm will relocate to the new office space to accommodate its growth in Boston.
Around 300 KKR employees are already based in the Boston area, primarily serving the firm’s insurance business.
“As we’ve outgrown our existing space, this strategic move downtown positions us to invest in local talent and expand our operating platform to support our U.S. and global operations,” Burke Malek, head of KKR’s Boston office, said in a statement.
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He continued, “The combination of a top-tier office space with world-class amenities and an unmatched location made this the ideal choice for our growing team.”
KKR is a publicly traded company that offers alternative asset management, capital markets, and insurance solutions.
The move downtown comes as many firms are settling on their return-to-office stance, and unused offices are converting to housing.
The firm will be entering an updated space. The property recently underwent a $100 million renovation in 2024 to enhance the tenant experience at the 1.8 million-square-foot office building.
The Chiofaro Company’s redevelopment, in partnership with PGIM, transformed the ground-level lobbies and entrances and the Aries Club, a 25,000-square-foot amenity center. The office offers views of Boston’s waterfront and access to a private roof deck.
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“KKR’s decision to plant a substantial flag at International Place is a major milestone for both the building and Boston’s business community,” Don Chiofaro Jr., vice president of The Chiofaro Company, said in a statement.
He added, “This move reflects the resurgence of office demand in the downtown market, and the value tenants continue to place on locating in the highest-quality work environments.”
Jones, Lang LaSalle, Newmark, and Cushman & Wakefield brokered the deal.
PGIM is a global asset management business and the third-largest real estate investment manager with $213 billion in gross assets.
The Chiofaro Company is a privately held, independent firm that develops, invests in, leases, manages, and owns real estate properties.
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