Related Beal Sells Two Congress Square Properties

A rendering of Congress Square in Boston. Source: Boston Redevelopment Authority

BOSTON—Thibeault Development of Everett, MA has acquired two office buildings that are part of the Congress Square redevelopment project being undertaken by Related Beal. Related Fund Management, a subsidiary of Related Cos., sold 15 and 19 Congress St. office buildings to Thibeault Development. The two office properties, which are slated to be repositioned as residential space, sold for $14.55 million, according to a report in Banker & Tradesman, which attributed the sale value to a filing with the Suffolk County Registry of Deeds. Biria St. John, executive vice president and partner at CBRE New England, represented Related Beal in this sale. The 15 and 19 Congress St. office buildings were acquired by the Related Real Estate Recovery Fund back in late 2013 as part of its five-building purchase of the former Fidelity Investments’ headquarters that comprise one block in Downtown Boston. Other properties involved in the deal were: 40 Water St., 68 Devonshire St. and 54 Devonshire St. Related reportedly paid $59.2 million for the 343,000-square-foot office and retail complex and secured approval from the Boston Redevelopment Authority for its Congress Square redevelopment and repositioning plan—valued at the time at $105-million—in July 2015. “We are delighted to add 15 and 19 Congress Street to our downtown portfolio,” says Billy Thibeault, principal at Thibeault Development in a prepared statement. “We are excited with the master plan for Congress Square that Related Beal has developed and are looking forward to being a part of bringing it to fruition. Congress Square is very much in line with our investment emphasis on integrated mixed use development in downtown Boston.” Thibeault Development plans to transform 15 Congress St. and 19 Congress St. into residences with approximately 5,750 square feet of street-level retail and restaurant space with immediate access to Quaker Lane.  According to the plan approved by the BRA last year, the properties will feature 35 residential condominiums. The plan calls for a five-story addition to 15 Congress St. totaling 7,700 square feet. Related Beal’s Congress Square project calls for the creation of more than 35,000 square feet of retail through storefronts and the revitalization of Quaker Lane, a formerly underutilized alley at the top of Post Office Square. The plan for Quaker Lane calls for a “reimagined pedestrian way and retail destination lined with boutiques, indoor and outdoor cafes, restaurants, and attractions,” the company states. “Congress Square is an extraordinary redevelopment opportunity that will activate Congress, Devonshire and Water streets with a mix of uses. The residences that Thibeault is developing at 15 and 19 Congress Street contribute greatly to our vision of Congress Square as a dynamic addition to Boston’s downtown,” says Stephen Faber, an executive vice president at Related Beal. Related Beal is transforming 40 Water St.—once separate buildings (82 Devonshire St. and 33-35 Congress St.)—into one cohesive building with six-and-a-half new stories of curtain wall office space and a single modern core. Related Beal is preserving the landmarked property and incorporating retail/restaurant space on the lower levels and ground floor. 68 Devonshire St. consists of the existing 68 Devonshire building and a new nearly 30,000-square-foot addition to be constructed on the adjacent vacant lot located at 54 Devonshire St. The plan for this site includes an approximately 165-key boutique hotel and related uses.