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Tommy?s Tower cost could top $1B
By Scott Van Voorhis
Tuesday, May 30, 2006
It is not just the height that is towering in Mayor Thomas M. Menino?s proposal for a 1,000-foot-high tower.
Menino?s grand idea for a new, centerpiece Hub skyscraper could carry a towering price-tag as well.
How much?
One of Boston?s best known builders said the project could cost a bundle.
?It?s in excess of a billion-dollar project,? said Dean Stratouly, builder of the 33 Arch Street tower, not far from where Menino wants a signature tower built.
?This isn?t going to be done with a wing and a prayer,? Stratouly said. ?It will take substantial equity.?
The estimate comes as City Hall prepares to release today a formal call for proposals from developers eager to take on Menino?s challenge. The so-called request for proposals will spell out what kind of tower Boston officials are looking for on a key Financial District site now covered by a run-down, city-owned parking garage.
The document, eagerly awaited, will spell out the height, square footage and architectural expectations developers will need in drawing up their proposals.
City Hall is likely to seek a variety of uses that would include office, residential and retail, real estate executives say. However, developers interested in the site are already calculating the construction cost of building a skyscraper that could dwarf even the Hancock and the Pru.
Stratouly calculates that a 1,000 foot tower would likely contain 2 million to 3 million square feet of space, given typical tower floor-plate sizes. With downtown high-rise construction costs as high as $500 a square foot, that adds up to anywhere from $1 billion to $1.5 billion, he said
Stratouly has had a hand in some of the city?s top projects in recent years, including the city?s $800 million South Boston convention center.
The sheer size and cost of Menino?s tower plan is likely to lead to companies teaming up to share costs, Stratouly said.
?Anyone doing this will be joint venturing with some big money source,? Stratouly said. ?This is a pension fund deal. It will be extremely expensive to build.?
Development heavyweights expected to take a look a the site include: Prudential Center owner Boston Properties; Chicago-based Equity Office Properties Trust, the nation?s largest office tower owner; New York-based Vornado Realty Trust, which has a deal for the Filene?s building; veteran Boston developer John Hynes, who built State Street?s new tower headquarters near South Station; International Place builder Don Chiofaro; and local business magnate Steve Belkin, who owns an office building next door.
By Scott Van Voorhis
Tuesday, May 30, 2006
It is not just the height that is towering in Mayor Thomas M. Menino?s proposal for a 1,000-foot-high tower.
Menino?s grand idea for a new, centerpiece Hub skyscraper could carry a towering price-tag as well.
How much?
One of Boston?s best known builders said the project could cost a bundle.
?It?s in excess of a billion-dollar project,? said Dean Stratouly, builder of the 33 Arch Street tower, not far from where Menino wants a signature tower built.
?This isn?t going to be done with a wing and a prayer,? Stratouly said. ?It will take substantial equity.?
The estimate comes as City Hall prepares to release today a formal call for proposals from developers eager to take on Menino?s challenge. The so-called request for proposals will spell out what kind of tower Boston officials are looking for on a key Financial District site now covered by a run-down, city-owned parking garage.
The document, eagerly awaited, will spell out the height, square footage and architectural expectations developers will need in drawing up their proposals.
City Hall is likely to seek a variety of uses that would include office, residential and retail, real estate executives say. However, developers interested in the site are already calculating the construction cost of building a skyscraper that could dwarf even the Hancock and the Pru.
Stratouly calculates that a 1,000 foot tower would likely contain 2 million to 3 million square feet of space, given typical tower floor-plate sizes. With downtown high-rise construction costs as high as $500 a square foot, that adds up to anywhere from $1 billion to $1.5 billion, he said
Stratouly has had a hand in some of the city?s top projects in recent years, including the city?s $800 million South Boston convention center.
The sheer size and cost of Menino?s tower plan is likely to lead to companies teaming up to share costs, Stratouly said.
?Anyone doing this will be joint venturing with some big money source,? Stratouly said. ?This is a pension fund deal. It will be extremely expensive to build.?
Development heavyweights expected to take a look a the site include: Prudential Center owner Boston Properties; Chicago-based Equity Office Properties Trust, the nation?s largest office tower owner; New York-based Vornado Realty Trust, which has a deal for the Filene?s building; veteran Boston developer John Hynes, who built State Street?s new tower headquarters near South Station; International Place builder Don Chiofaro; and local business magnate Steve Belkin, who owns an office building next door.