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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.