stellar are you the guy who always has it out for Chiofaro? Just curious what your beef with him is. I don't know him personally, but some poster (maybe you, maybe not) kept insinuating that he paid too much for the garage even though its a money maker and that he was about to go bankrupt and lose his stake in International Place. Don't see how he's any different than any other developer in the city, except for being a little less well connected than a guy like Fish.
Rover, I don't have it in for Chiofaro. If he succeeds in this project, all the more power to him.
That said,
a.) He paid $153 million for 1.3 acres, and a large garage that generates significant revenue. (Coincidentally, that is the amount MP paid for Winthrop St.)
b.) He paid $153 million for a property in which HT residents hold an easement, with respect to their access and use of the garage. When he bought the garage property, that easement, IIRC, had about 12-13 years to run. The easement is for a period of years, not perpetuity. There is another HT easement with respect to the garage, for mechanicals and utilities, which runs to perpetuity. The parking space easement effectively frustrates any development of the garage property until that easement expires.
c.) He bought a property, apparently unaware of FAA height limits that exist with respect to that property. Whose responsibility is it to do due diligence?
d.) Ted Oatis (who died about four years ago) estimated, IIRC, the cost of burying the garage at $175 million. Its probably higher now.
The land area of the garage parcel is 57,340 sq ft. (1.3 acres). From a development standpoint, the cost of buying the property plus burying the garage comes to about $330 million, or $5,755 per square foot of land area --before one gets above grade with a building.
With basically $330 million in sunk costs for land and a garage, good luck in making the numbers work on a building whose volume is capped at 900,000 square feet.
(MP's Winthrop St garage redevelopment is 1.6 million gsf, to be built on land that cost MP $153 million.)