BOSTON-A locally based development partnership is backing off from its agreement to acquire the 21-acre Fan Pier site. This is the second deal in as many months that has fallen apart. The joint venture of New England Development, Boston Properties and the Related Cos. is exercising its rights to terminate the purchase agreement with Hyatt Development Corp. The joint venture will forfeit the $2.5-million deposit made to the Hyatt, of which each partners’ share is one-third.

In September, Miami-based Lennar Corp., which was prepared to pay a reported $125 million for the site, missed its down payment for the property. The deal with the local developers was said to be in the same price range.

Nicholas Pritzker, the Chicago-based head of Hyatt, spent nearly three years getting the $1.2-billion hotel, office and residential complex permitted, but never secured the necessary financing to move the project forward. Fan Pier–the largest development on the South Boston waterfront–is nearly vacant and used largely for parking.

The Fan Pier project is currently fully permitted and, as currently approved, consists of approximately three million sf in nine buildings. This involves 1.1 million sf for multifamily units–with 20% designated as affordable, 1.2 million sf office space, 140,000 sf of ground-floor retail, restaurants and cafes as well as a 500- to 650-room hotel. Also incorporated in the plan are 2,285 spaces of underground parking and 107,000 sf dedicated to civic and cultural use including the new home of the 62,000-sf Institute of Contemporary Art.

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