Ashkenazy Sells Boston's Iconic Faneuil Hall Marketplace
Boston's historic Faneuil Hall Marketplace has traded hands after city leaders raised concerns about underinvestment and a string of national chains opening.
J. Safra Group reached a deal to acquire the ground lease for the marketplace from New York-based Ashkenazy Acquisition Corp., the buyer announced Monday. It didn't disclose the price.
Ashkenazy acquired the ground lease for the property in 2011 for $140M.
"Faneuil Hall Marketplace is a tremendous asset and truly the heart of Boston. It is consistent with our real estate portfolio of signature assets," J. Safra Group said in a statement. "We look forward to working in lockstep with the Boston Planning & Development Agency, the City of Boston and other local constituents to continue the excitement, pride, and success of this world-class destination."
The group manages over $300B in assets, and its real estate arm, J. Safra Real Estate, owns over 200 commercial, residential, retail and farmland properties globally.
Ashkenazy has been criticized for its management of Faneuil Hall Marketplace, with tenants worried about underinvestment and city officials saying it needs $45M in repairs, the Boston Globe reported. Mayor Michelle Wu has expressed disappointment over the influx of national brands to the iconic property, which she says should showcase Boston's local businesses.
In October 2021, Ashkenazy was sued for more than $2.5M merchants said they were owed, the Globe reported at the time.
The landlord has run into similar problems with South Station, which it acquired in 2017 for $119M. The MBTA sent a letter in March to Ashkenazy giving it 30 days to make changes to operations at the station, which had faulty escalators and issues with cleanliness, WCVB reported.
Nationally, lenders have claimed Ashkenazy owes them tens of millions of dollars, and the firm has been criticized by politicians in multiple cities. The landlord was hit with a foreclosure suit for a property in Harlem in March 2022, and SL Green took control of another New York property in 2021.
