A downtown tower sells for $260 million, 68% below its 2019 price. Council requests on falling office values have no hearing dates
100 Summer Street went back to its former owner at a foreclosure auction. Worrell warned in April that falling commercial values shift taxes onto homeowners. Three related hearing orders are waiting.
A 32-story office tower near South Station sold Oct. 27 for $260 million at a foreclosure auction, a 68% discount from the $806 million it sold for in late 2019, Banker & Tradesman reported. The buyer was the former owner, Rockpoint Group, with the only bid. Lender Wells Fargo, which provided $470 million in mortgage financing for the 2019 purchase, had moved to foreclose. The building, 100 Summer St., is about 72% occupied, the trade paper reported. Bloomberg called it a $546 million discount.
Why it matters to homeowners
Boston gets most of its revenue from property taxes. When downtown office buildings lose value, the city can raise less from them, and more of the levy can shift to residential taxpayers. The Boston Policy Notes newsletter reported that the city had assessed 100 Summer at $425 million, well above Tuesday's price. An auction price does not automatically change an assessment, but sales like this are evidence assessors and owners use when values are appealed.
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City Councilor Brian Worrell laid out the concern in April. He told the council that commercial property values had fallen for two straight fiscal years, that the city's dashboard showed office vacancy at 16.8%, nearly triple 2019's, and that office rents had dropped more than 14% (watch at 1:35:30). "When its commercial values fall, the tax burden does not just disappear," he said. He said homeowners had seen double-digit tax increases two years running (1:36:05).
What our records add: three orders waiting
- Docket 0774: Worrell's order for a hearing on redevelopment tools for underperforming commercial properties, such as district-based financing, incentives and lower fees. Ten colleagues signed on. It has been in the Labor and Economic Development Committee since April 8, 205 days ago.
- Docket 1336: City Councilor Ed Flynn's order for a hearing on what happens to city revenue if Boston loses in court on commercial assessments, with 10 co-sponsors. Flynn said a group of commercial owners sued the city in December 2025, alleging retaliation against owners who sought abatements, and that Suffolk Superior Court denied the city's motion to dismiss in May (1:55:22). The order has been in Ways and Means since July 8, 114 days ago. These are claims in a pending case.
- Docket 1058: Worrell's order for a hearing on fiscal 2027 property tax rates, with 11 co-sponsors, in Ways and Means since May 20.
One related item has had a hearing. Worrell's ordinance requiring quarterly revenue reports to the council was heard Oct. 8 in Government Operations and is still in committee (docket 1099; meeting page). On Oct. 28 the council adopted City Councilor Julia Mejia's request for information that also asks for the city's early revenue estimates (our story).
What's next
Tax rates for fiscal 2027 are set each fall. The council votes on how to split the levy between residential and commercial property, and the state signs off, usually in December. No hearing is posted on the three orders above. The council meets Nov. 4, Nov. 18, Dec. 2 and Dec. 9.