News
Greenway Goodness
May 27, 2010
| In the Athens of America, debate continues on the value of the Greenway and the Big Dig that made it possible. Some say the construction problems and still unfinished park have tainted it. But CRE people say improved views, access, and green space have boosted values and kept even older buildings well occupied. |
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| We snapped Rowe's Wharf, with its offices, condos, hotel, and retail, a prime beneficiary of the project, says JLL?s Ben Heller. Once blocked by the elevated expressway, its archway is now a monumental gateway to the Harbor for people coming from the Financial District. Built in the late '80s/early '90s, Rowe's Wharf is still Class A, and has managed to maintain most of its tenants through the recession. Ben tells us that all buildings on the Greenway have performed well, attracting and retaining tenants. Landlords are positioning properties for recovery and to take advantage of the $14.8B public investment in roads, bridges, new underground utilities, and improved public transit. |
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| On the waterfront side, UGL Equis? Bob Cleary says the Greenway created a whole new world. Knowing it was on the way, investors poured in hundreds of millions to develop the three buildings on the left above. A renovated Independence Wharf was completed in 2005, the Intercontinental Hotel in 2007, and Atlantic Wharf, which will cost about $450M, is the largest office tower now under construction in Boston. Ben says JLL sold Boston Properties the Wharf site, and once the office, retail, and residential units are completed in February, it will anchor the whole Greenway, dedicated in ?08. Independence Wharf sold last fall for $303/SF, up nearly 30% from its prior sale in ?02, Reis reports. |
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| We snapped Ben in front of the '70s era 99 High St., where he's been busy leasing space. Just 5% of the building's 731k SF is still available. Bob says the building was reborn with the Greenway. The property no longer faces into the grimy expressway, so lower floors have views. The street has come to life with gardens, benches, street lamps, and people. Owner TIAA-CREF is investing $30M to replace all windows, mechanicals, and the high-rise elevators, as well as to renovate the lobby and seal exterior stone work. Ben says Teachers Pension is able to make ?deals to get it filled.? As for the leases set to expire for tenants who moved in as many as eight years ago on the dream of the Greenway, Ben?s isn't worried. ?We have a good chance of retaining most,? he says. |
