Boston-based private equity firm Rockpoint Group has repurchased the 32-story office tower at 100 Summer Street in downtown Boston at a significant discount following a loan default and foreclosure auction. The transaction was completed on Tuesday, with Rockpoint acquiring the building for roughly $250 million less than its original purchase price in 2019.

Rockpoint initially secured the property just prior to the onset of the COVID-19 pandemic, which severely impacted the commercial real estate market and contributed to a sharp decline in office property values. After several years of loan repayments, the firm chose to default on its mortgage, resulting in Wells Fargo, the lending bank, moving forward with a foreclosure sale.

At the auction, Rockpoint was the sole bidder, allowing the firm to regain ownership of the asset at a 68 percent discount. This type of transaction exemplifies a broader trend in post-pandemic commercial real estate, where investors and lenders often navigate challenging market conditions by restructuring debt or agreeing on discounted sales.

Manish Srivastava, a professor of real estate finance at New York University, noted that such deals often stem from the need for banks and property owners to manage underwater assets—properties valued less than the outstanding loan balance. He described the approach as “extend and pretend,” a common strategy where both parties collaborate to maximize eventual recovery and mitigate losses rather than forcing outright sales at distressed prices.

The case of 100 Summer Street underscores the ongoing difficulties faced by commercial office spaces in major cities as they adapt to shifting demand and occupancy patterns following the pandemic. It also highlights how large investors may use default and foreclosure mechanisms strategically to reposition assets in a volatile market environment.