Boston's $1.5B Bulfinch Crossing secures investor, paves way for demolition, construction
- Carr Properties, based in Washington D.C., has joined the $1.5 billion Bulfinch Crossing's high-rise project in Boston as an investor, according to The Boston Globe. The cash injection will make it possible for managing partner HYM Investment Group to begin demolition and construction work next year. Based on the building's value, Carr's investment is likely in the $400 million to $500 million range. National Real Estate Investors, a union electrician fund, is also a major investor in the project.
- The project will see the demolition of approximately half of the existing Government Center Garage and other buildings go up in its place, including One Congress, a 1-million-square-foot, 43-story office tower designed by Pelli Clarke Pelli Architects. The 528-foot-tall building will also feature a three-story lobby, conference space, a 1-acre landscaped terrace and almost 11,000 square feet of retail. The tower will also sit over two subway lines, a future bike-share service, vehicle charging stations and onsite car rentals, with two commuter rail stations in walking distance.
- One of Bulfinch Crossing's two residential towers is already under construction, but demolition of the garage — which must first be funded — must happen before construction of other buildings can begin. HYM expects to start construction on One Congress next year for a targeted opening in 2022. The 4.8-acre development will also include a hotel/condo building as well as boutique office space and retail.
Residential and office high-rises generate a lot of excitement, but, according to a report from National Real Estate Investor earlier this year, mid-rise construction is trending. In an environment of escalating labor and material prices, mid-rises are cost-effective alternatives for developers aiming to keep tenant costs low relative to tower space.
In addition, low-rise layouts are more flexible and can offer a range of amenities like outdoor recreation areas. It is also easier to encourage collaboration and a feeling of community between tenants and co-workers if they are not separated by a dozen or more floors. These are some of the reasons Microsoft has elected to limit its multi-billion expansion at its Redmond, Washington, headquarters to 18 low- and mid-rise buildings, split between four, connected villages. The height and size of these buildings also fit into the company's plan to encourage physical activity.
Developers of the $1.8 billion, mixed-use Frisco Station development just outside of Dallas also went with mid-rise design for its HKS-designed Offices One and Offices Two projects, which span seven and six stories, respectively. The first building, which is complete, was 45% leased as of last month, and Manhattan Construction will build the second.
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