Boston Global Investors Inks Development JV for $450M South Boston Waterfront Project
As co-developers, Boston Global Investors, Eagle Development Partners of Stoneham, MA, EDGE and The Cogsville Group of New York City form the general partnership of the project, each contributing what the partnership terms as “significant capital.”
BOSTON—Boston Global Investors has signed a development joint venture agreement with three partners, including Amsterdam-based EDGE Technologies, for the development of the $450-million 401 Congress St. office building in the South Boston waterfront.
The joint venture agreement between Boston Global Investors, Eagle Development Partners, The Cogsville Group and EDGE Technologies was signed during the Holland Trade Dinner in Boston on July 18 attended by Dutch Prime Minister Mark Rutte and Massachusetts Gov. Charlie Baker.
The Massachusetts Port Authority (Massport) Board of Directors voted in November 2018 to have the authority enter into a development agreement and ground lease with Boston Global Investors and its team for the A-2 parcel in South Boston. Boston Global Investors filed a Letter of Intent with the Boston Planning & Development Agency on May 22, 2019 for the 645,000-square-foot office tower at the Parcel A-2 site at 401 Congress St. The project also includes a 30,000 square-foot building to be constructed at the adjacent Triangle Parcel.
“This state-of-the-art building will be developed according to the joint expertise of all partners. Given the dynamics of the market today, the location of the site and the potential of the development and its area, the project will create a unique impact: not only boosting the South Boston Waterfront’s position as an economic hub, but also positively and meaningfully contributing to the public realm,” says John B. Hynes III, CEO and managing partner of Boston Global Investors.
In its Letter of Intent, Boston Global Investors stated that the 18-story office building at 401 Congress St. will contain approximately 585,000 square feet of office space, beginning on the third floor. A new elevated pedestrian bridge will connect 401 Congress with the new building on the Triangle Parcel. In total, BGI’s Hynes stated in the firm’s letter to the BPDA that the project will feature approximately 66,000 square feet of outdoor public space and another 65,000 square feet of indoor public space, including a two-story Great Hall on the Congress Street level.
As co-developers, Boston Global Investors, Eagle Development Partners of Stoneham, MA, EDGE and The Cogsville Group of New York City form the general partnership of the project, each contributing what the partnership terms as “significant capital.”
In an effort to assist with the city, state, and Massport’s goal to stimulate greater racial and gender diversity and inclusion in development projects, the development team has established an aggressive diversity and inclusion plan, which includes creating an investment syndicate to encourage women and people of color from across the country to invest in the project.
The project has committed to: 15% of the development fees being owned and managed by minority JV development partners at The Cogsville Group and Eagle Development Partners; approximately 20% of all consultant contracts going towards minority-owned business enterprises; 30% of the construction management contract to a minority-owned general contracting firm and minority and female individuals representing about 60% of all development team staff members.
Additionally, the project has committed to a $4-million community benefit fund to be distributed across Boston’s urban neighborhoods to help fund local non-profit organizations and programming efforts.
The project marks EDGE’S entrance into the Boston market and the firm’s second in the US.
“We are truly excited to announce our second development in the US and look forward to collaborating with Boston Global Investors to contribute to the transformation of Boston’s South Boston waterfront,” says Coen van Oostrom, founder & CEO of EDGE. “With our experience in improving sustainability and well-being in buildings through implementing our smart technology, we can significantly enhance the overall quality of life of the future tenants and the South Boston waterfront community.”
In June, EDGE announced its entrance into the UK commercial property market with the acquisition of a redevelopment in London. In 2018, Edge completed the transformation of Unilever’s New Jersey headquarters.
The project now before the Boston Planning & Development Agency, is expected to be completed in early 2023.