BU Selling Kenmore Square Buildings to Related Beal

The agreement between BU and real estate developer Related Beal involves nine Kenmore Square properties, from 648 Beacon St. to 541 Commonwealth Ave. and 11-19 Deerfield St. Courtesy: Boston University/Cydney Scott

BOSTON—Development firm Related Beal has reached an agreement with Boston University to acquire nine buildings in Kenmore Square, one of which houses the iconic Citgo neon sign on its roof. The deal, which is expected to close this fall, will involve the sale of the nine buildings and a long-term ground lease between Related Beal and Boston University. No financial terms of the transaction were disclosed by either party. The buildings are being acquired through Related Real Estate Fund II, a real estate investment fund sponsored by Related Companies. A spokesperson for Boston-based Related Beal tells Globest.com that no definitive plans for the properties have been established and the firm has yet to file plans for the properties with the Boston Redevelopment Authority to begin the approval process. Related Beal will “reimagine” nine buildings spanning the north side of Kenmore Square. According to BU, the sale involves 310,000 square feet of commercial space on the north side of the square, from 648 Beacon St. to 541 Commonwealth Ave., as well as 11-19 Deerfield St. The buildings include 660 Beacon St., which houses the Barnes & Noble at BU bookstore as well as the iconic Citgo neon sign on its roof. According to BU, the buildings that house university offices, the bookstore, and the Center for Anxiety & Related Disorders will be leased back to BU for two years while Related Beal plans the redevelopment of the square and the university decides where to house those operations. One option is to remain a tenant at the properties. The future of the US Post Office at 11 Deerfield St. has also not been determined. Boston University stresses in its announcement that since it has entered a ground lease for the properties, it will be working with Related Beal on its redevelopment plans, including the future of the Citgo sign. “For decades, Boston University has sought to improve Kenmore Square with the goal of making it a safe, appealing, vibrant city hub that complements our campus,” says BU President Dr. Robert A. Brown. “Our earlier strategy was to acquire properties and set a standard for the tenants in the square. The success of this approach has made the square more attractive to our students, the community, tenants and developers.” He adds that the sale of what the university calls the “north parcel” properties to Related Beal “has initiated the next stage of the development of the square. Development by Related Beal will make Kenmore Square even more attractive as a venue for retail and innovation and as a livable neighborhood adjacent to a major university. We look forward to working with Related Beal to help realize this vision.” Related Beal President Kimberly Sherman Stamler says of the deal with BU, “This significant location serves as a vital connection between Fenway, the Back Bay and Brookline and we look forward to working with BU, the BRA and the community to create a plan that will contribute to the vitality of Kenmore Square.” Related Beal is currently working on its Lovejoy Wharf project that includes the redevelopment of the former Hoffman Building at 160 North Washington St. into Converse’s headquarters, as well as the new Harbor Walk that now links Paul Revere Park to the north and the Rose Fitzgerald Kennedy Greenway to the south. Related Beal is also developing 131 Beverly St. and Parcel 1B , the city’s largest affordable and workforce housing project in 25 years, and Congress Square in the Financial District, involving the repositioning of five buildings with nearly 343,000 square feet of office and retail space.