Harbor Garage going on market
Waterfront site likely to host mix of uses
By Thomas C. Palmer Jr., Globe Staff | June 19, 2007
The hulking Harbor Garage, on a premier site near the Boston waterfront and New England Aquarium, is going on the market today and will likely be redeveloped into a mixed-use complex friendlier to the city's waterfront visitors.
The concrete garage, designed in '60s brutalist style by I.M. Pei, could bring $170 million or more, according to the broker, Cushman & Wakefield of Massachusetts Inc.
InterPark, the large national owner and operator of parking garages, is selling the 1,380-car structure as commercial real estate prices in Boston have hit astronomical levels. It is sometimes referred to as the Aquarium Garage.
"Developers have been calling us for years with ideas for this property," said Marshall Peck, InterPark chief executive. He said InterPark intends to remain the parking facilities operator there even with a new owner.
Donald J. Chiofaro, developer and co-owner of the nearby International Place towers, once called the site the "most exciting piece of real estate in the city of Boston." Chiofaro had an option to buy the garage that expired several months ago, and yesterday he vowed to bid on it again.
Chiofaro had offered InterPark $130 million in his earlier bid, based on his plan to develop a mixed-use complex of more than 1 million square feet. But he will have stiff competition this time, with bids expected to come in over the next month or so, according to Elizabeth C. Thomas, executive director of Cushman & Wakefield.
Local, national, and international investors have already gotten wind of the offering and are making inquiries, she said.
Rob Griffin, president of Cushman & Wakefield, called the property "the next Rowes Wharf," referring to the upscale condo, office, and hotel complex farther down the waterfront. "We really feel like it's going to be strongly sought after," he said.
Griffin noted that the garage, which comes with 30,000 square feet of retail space, will bring in millions of dollars in revenue to carry the purchase cost while a new owner goes through an expected two or three years of permitting for redevelopment of the site.
"You don't get any better situation," Griffin said.
Chiofaro's plan, which he shared with city officials about a year ago, was to raze the garage and build a 175-room hotel, 125 luxury condominiums, 800,000 square feet of office space, and retail space. The plan was for two buildings -- one 475 feet high, or 75 feet taller than the adjacent Harbor Towers buildings.
"The feedback we got was that it was too dense. Anything you build there, you're going to affect people's views," Chiofaro said yesterday.
Other complicating factors for the eventual buyer are that up to 400 of the parking spaces in the garage are leased to residents of Harbor Towers for about another decade, and that the residential high-rises' heating and air-conditioning systems are located in the garage building. Both situations would require delicate coordination with Harbor Towers management and residents during several years of construction.
Dirigo Spice Corp., an importer and seller, occupied the 1.3-acre site and garage at 70 East India Row along Atlantic Avenue before 1966, when the Boston Redevelopment Authority urged the company to move to make way for the garage.
An investment fund controlled by Chicago real estate mogul Samuel Zell bought the garage in 1996 for $55 million. InterPark purchased the property in 2002 through a unit called Urban Growth Property Trust as part of a package deal of 11 garages nationwide for $180 million. Urban Growth has $20 billion in assets in 20 markets, according to its web site.
Thomas C. Palmer Jr. can be reached at
tpalmer@globe.com.