Davis Cos. Secures $245M in Financing for 650,000-SF Project

The $245-million financing package, which consists of a construction/permanent loan, closed this week, clearing the way for construction work to begin on the 650,000-sf redevelopment, including construction of over 400,000 sf in two buildings. The project involves building an additional six stories on a two-story building as well as redeveloping a nine-story building and building a third 75,000-sf building.

The project is considered a key component to the rebirth of the Cambridge Street corridor and other vital areas of Beacon Hill and the West End. In a statement, the Davis Cos. says it recognizes "the property's importance as a link between the West End and Beacon Hill neighborhoods and has been committed to including community input in its plans."

The development recently nailed down an anchor tenant with the signing of a long term lease with Massachusetts General Hospital for 355,000 sf of space. The hospital will use the space to expand its research. Dr. Peter L. Slavin, president of the MGH notes that it was a challenge finding the right space for the hospital's growing research program. "This new research facility, which is right next door to the hospital, provides an opportunity for us to organize certain scientific efforts, such as genetics and regenerative medicine, in a more interdisciplinary way," he says.

The official groundbreaking ceremony for will be held early next month. Menino, representatives from the Boston Redevelopment Authority, the members of the community Impact Advisory Group and local public officials are expected to participate in the ceremony. "This is great news for Boston. The Charles River Plaza project is important for the city on two levels--first, it underscores the importance of the research and development industry to our economy. And second, the project will re-knit the fabric of Cambridge Street, bringing energy and vitality back to the street level. It is an integral component of the revitalization initiative that is transforming the street from City Hall Plaza all the way down to MGH," says City Mayor Thomas M. Menino.

A community advisory group is working with The Davis Cos. to identify retail uses and service tenants that would meet the needs of the community and further revitalize the Cambridge Street area. Bread & Circus will be opening a new full-service supermarket at the site. CVS and Fleet Bank along with other existing retail tenants will continue to occupy space at Charles River Plaza.

"Given the very difficult current economy, we are very pleased to be moving such a significant project forward in Boston right now," says Jonathan Davis, CEO of The Davis Cos. "Because the healthcare sector of our economy continues to grow and because we are blessed with premier institutions such as Massachusetts General Hospital here in Boston, this project will become a reality at a time when many other development plans are going back on the shelf… The redevelopment of Charles River Plaza is important to the rebirth of Boston's Cambridge Street corridor and we are pleased to be able to work with local and state officials and community residents to make this project a reality."

Founded in 1975, The Davis Cos. is one of the largest privately-held real estate investment, development and management firms in New England with over $1 billion in real estate. In addition to its local office, the firm has an office in Norwalk, CT.