Skanska Bullish on Seaport District

BOSTON—In a few months the first units of the $180-million Watermark Seaport mixed-use project here will be delivered and the developer/owner is confident that there is more than sufficient demand to fill the latest multifamily residential high-rise property in the city's Seaport District.

Globest.com talked with Matthew Abrams, vice president, development with Skanska USA Commercial Development, to learn the status of the 346-unit Watermark Seaport multifamily project being built nearby two other Skanska projects—the 101 Seaport and 121 Seaport office towers on Seaport Blvd. Abrams says that the first units of Watermark Seaport will be delivered in early January. The project broke ground in February 2013.

“We will be delivering the first phase, which is the first 10 stories of the tower, and the entire loft (six-story) building,” he says. The entire project, which includes the final seven stories of the apartment tower, will be completed by March of 2016, he adds. The residential tower at full built-out will feature 281 apartment units, while the loft building will contain another 65 units. The amenities for the project, with the exception of the roof deck, will be completed with the finish of the first phase.

The Watermark Seaport project will also include approximately 24,000 square feet of retail space. The building will feature studio, one-, two-and-three-bedroom units, as well as smaller studio units called innovation units or micro apartments that will be dispersed throughout the tower building. Of the total 346 units, 45 will meet city affordable housing requirements.

Skanska and Twining Properties recently launched pre-leasing for Watermark Seaport, which is being built targeting LEED Gold designation. The building is located across the street from District Hall and Seaport Square Green, and nearby the future One Seaport Square, a large-scale mixed-use residential/retail tower.

Abrams says that within the first week of marketing Watermark Seaport, Skanska already has a “more than a handful of leases” in hand. He says that he believes there is definitely sufficient demand for new multifamily product in the Seaport District and he notes that Watermark Seaport is the only new product to come on-line in recent times. He adds that the new product built over the last few years have all been stabilized and some tenants' leases are now coming due. Currently, studio rents are being marketed at monthly rents beginning at $2,300; one-bedroom rents start at $2,700; two-bedroom rents begin at $4,200 and three-bedrooms unit rents start at $4,300 a month.

Skanska hopes to also take advantage of the new office construction in the area and plans to aggressively market Watermark Seaport to commercial tenants, including the lead tenant at 101 Seaport, PriceWaterhouse Coopers. “We will enter into an agreement with a corporate housing provider, which we think will be very popular for folks like PWC," he says.

Shawn Hurley, executive vice president of Skanska USA Commercial Development, says that the mix of product type between the apartment tower and the modern loft units as well as the ample amenities package should interest both young professionals as well as empty-nesters.

Abrams adds that prospective tenants should be attracted to the retail space that will be part of not only Watermark Seaport, but also the 101 and 121 Seaport tower buildings and Boston Global Investors' One Seaport Square development.

WS Development of Chestnut Hill, MA is acquiring the retail condominium space at Watermark Seaport from Skanska, Abrams says. The firm has inked a purchase and sale agreement on the retail space. The transaction will close when construction on the project is completed. While he did not reveal financial details of the transaction, Abrams tells Globest.com that Shake Shack and CVS have already signed lease deals at Watermark Seaport.

Watermark Seaport has approximately 17,000 square feet of amenities, including outdoor space on the second floor and the rooftop SkyDeck, which totals approximately 3,000 square feet. Among the chief amenities include: a fitness center, wellness studio for yoga and group fitness, residence lounge with billiards room and open workspace, private dining and event space, an “innovation lab” with smart technology and Wi-Fi balcony, an outdoor courtyard with direct access to adjoining Q Park, a dog washing spa, indoor bike storage and an on-site Hubway bicycle sharing station.

Abrams says that Skanska and Twining have planned for a 14-month lease up of the property, but based on demand thus far, he says he would not be surprised that the property would be fully leased by this time next year.

Skanska reports it will begin construction this month on its 1350 Boylston St. mixed-use rental apartment/retail project in the Fenway section of the city. Abrams says the company is looking for further development projects in the city, noting that Boston is underserved for new multifamily-retail mixed-use projects.