[ARCHIVED] Harbor Garage Redevelopment | 70 East India Row | Waterfront | Downtown

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Re: The Boston Arch (Aquarium parking garage)

So is Chiofaro a B.S. artist of the first order? Or is he someone who wants more vertical height so he can try to charge premium rent? He has a deserved reputation of trying to be the building owner in the city who charges the maximum rent. Nothing wrong with that if you can find someone willing to pay.
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But Stellarfun, your math has 50,000 foot floor plans, which (to the best of my knowledge) Chiofaro has never proposed. Those floor plans would be ridiculously big (I think the Pru is around 23K SF - and that's a bulky building). Which is why he proposed two more slender (and taller) towers. That also allows him to separate the residential and office portions of the project.
 
Re: The Boston Arch (Aquarium parking garage)

TheRifleman said:
The BRA & the Mayor make no sense on this development. The way I see it. It's a personal attack on Chiofaro. They basically want this guy to go bankrupt. Fine if the FAA says absolutely no 600ft buildings in this location then fine. I can accept that because of safety issues. Leaving this garage on the Greenway is a Disaster. The Greenway is turning out to be a WASTE of taxpayers money.

The only people that would be bothered by a 600ft building would be the Harbor Tower Resident for blocking their views.

So now the BRA tells private investors what to build and how high to build it.
Talk about a communist regime.
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Boston's inner core is not that big (as far as land size) and we do not need another large park. We already have the common, the public garden, the comm av mall and the esplanade area for parks.

The green way has become a massive waste of space in a central part of Boston. it's a bit sad. All that attracts people to the space is the carousel, and the water fountain. There is Christopher Columbus Park, right next to the water, which is a better option for laying out and whatnot.
 
Re: The Boston Arch (Aquarium parking garage)

AmericanFolkLegend said:
But Stellarfun, your math has 50,000 foot floor plans, which (to the best of my knowledge) Chiofaro has never proposed. Those floor plans would be ridiculously big (I think the Pru is around 23K SF - and that's a bulky building). Which is why he proposed two more slender (and taller) towers. That also allows him to separate the residential and office portions of the project.
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He had to have proposed that when he talked with the BRA about a 475 foot building.

May 2006
Chiofaro thinks big as Greenway project would rival the Pru

By Steve Bailey and Chris Reidy, Globe Staff | May 26, 2006

Don Chiofaro, the man who built giant International Place, does not think small. And he is not thinking small as he eyes an ambitious new development on the Rose Fitzgerald Kennedy Greenway.

According to Chiofaro and City Hall officials briefed on his plans, the huge mixed-use project would total about 1.2 million square feet -- the equivalent of the Prudential Tower itself. It would include a 175-room hotel, 125 condos, 800,000 square feet of office space, and significant retail space. The early concept is for two buildings, including a 475-foot tower -- about 75 feet higher than the neighboring Harbor Towers. Ted Oatis, Chiofaro's partner, said the project would open a pedestrian corridor, creating a view to the harbor.

Projected cost: $600 million to $800 million.

City Hall officials, who met with Chiofaro for the first time yesterday, called the project ``very preliminary." But they and Chiofaro confirmed that the developer has secured an option to buy the parking garage just in front of the New England Aquarium, and plans to demolish the garage and replace it with 1,400 underground spaces. One official estimated it would take two to three years to get the project through the permitting process. The site is about 1.3 acres in all, bounded by Milk Street, East India Row, and Atlantic Avenue.

``This is the most exciting piece of real estate in the city of Boston," Chiofaro said yesterday after meeting with the Boston Redevelopment Authority.
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http://www.boston.com/business/arti..._big_as_greenway_project_would_rival_the_pru/

June 2007
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.
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http://www.boston.com/business/articles/2007/06/19/harbor_garage_going_on_market/

He went from 1.2 million sq ft to 1.5 million, but in the 1.2 million plan, there was only one tower.

In October 2009, the FAA said 407 feet.

Putting further pressure on developer Donald Chiofaro to reduce the height of his Harbor Garage redevelopment, the Federal Aviation Administration issued an initial finding Thursday stating that any structure exceeding 407 feet on the site will create a ?substantial adverse effect?.

The news did not appear to come as a surprise to Chiofaro Company, which said in a prepared statement, ?Regulations require FAA review for all structures over 200 feet in height. The notice from the FAA today does not mean we cannot build higher than 407 feet, it just means we need to go through a further review process to get there. Even Massport?s own height guidelines are 625 [feet] for our site.?
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http://boston.bizjournals.com/boston/stories/2009/10/26/daily55.html
 
Re: The Boston Arch (Aquarium parking garage)

In the first article you post it mentions 2 towers and 1.2M SF, but your point stands. This original proposal was incredibly dense (fat, dumpy). And now he's shooting for more height.
 
Re: The Boston Arch (Aquarium parking garage)

Didn't his initial vision have a big opening at the base between the two towers that funneled [like a V] onto the waterfront, with stores and stuff in it? [Or am I just tripping?]

What part of that isn't encouraging waterfront access and use?
 
Re: The Boston Arch (Aquarium parking garage)

stellarfun said:
atlrvr, what do you think the chances are that the garage purchase was financed in part, maybe even a large part, by the equity amount(s) in International Place as valued in 2007? My question stems from wondering why Chiofaro owed $600 million on a complex in 2004 that was built decades before?

On Chiofaro's bankruptcy filing. The 'mortgage' that Tishman Speyer bought from the Teachers Insurance and Annuity Association had a face value of $595 million. TS paid $630 million for it, and that was the value of the secured claim it had against Chiofaro at the time of the filing. TS had outbid Blackstone and others, including Chiofaro, for the 'mortgage'. Chiofaro bid $550 million, though Chiofaro acknowledged in filings with the court that he could not service that amount of debt. In other words, he knowingly made a bogus, if not fraudulent, bid.
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Is your question did he take out a mortgage on IP to buy the Harbor Garage? The answer to that is probably somewhere between yes and no. A developers net worth in general is almost always tied up in their share of equity in the buildings they own. The only way to "cash out" is to mortgage the buildings. You would never see a large multi-tenant office building not have a mortgage, and office building mortgages almost never amortize down to $0 like a house mortgage. Without diving too deep in, if a $500MM building that has a $300MM mortgage and goes up in value to $550MM, then the developer will refinance they building with a $330MM mortgage and pocket the $30MM difference, which is the easiest way to raise money quickly without having to sell the property. Lenders don't mind because as long as the building generates enough income in rents to pay the higher mortgage, they're happy, because a bigger loan = bigger interest payments.

I didn't quite follow your example about the mortgage on IP being sold, specifically what you mean that Chiofaro couldn't service it, since he would be under no obligation to pay himself. If you meant that Chiofaro/Prudential offered to buy the outstanding debt at a discount, even though the building didn't generate enough revenue to cover the mortgage, then its not fraudulent, it was just a way for them to get control of the building on the cheap. TS obviously thought that they could buy the building for the full cost of the mortgage and then foreclose, and be able to control the whole building, and then sell for a profit. I forgot what ended up happening, but obviously he managed to keep control.

So that long answer is yes, he probably used some of the proceeds of taking out a larger mortgage of IP to fund his share of the purchase of the Harbor Garage. But remember, while this sounds like a homeowner taking out a 2nd mortgage on their house to buy a boat, you have to keep it in perspective that 99% of Chiofaro and his peer's wealth is tied up in their real estate holdings, so this really their best source of funds.
 
Re: The Boston Arch (Aquarium parking garage)

pelhamhall said:
Chiafaro NEEDS to quickly rename this garage:

The Mayor Thomas M. Menino Legacy Garage

Big, bold, brass, lit-up lettering for all to see. Just leave it there for decades.
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I would not put this past Chiafaro. I am just waiting for him to do something big or something so abashedly anti-urban, anti-Menino, and probably illegal on this site, like kick out all the stores and board up the windows with the ugliest plywood he can fine then graffiti them with "Brought to you by Mayor Menino." Or allow a "suspicious fire" to take place in the building then run with the insurance money and leave a smoldering shell. Or just simply start tearing down shit with out permits. I am going to wait with bated breath for the next move....


(P.S. 100th post!)
 
Re: The Boston Arch (Aquarium parking garage)

Patriots_1228 said:
Didn't his initial vision have a big opening at the base between the two towers that funneled [like a V] onto the waterfront, with stores and stuff in it? [Or am I just tripping?]

What part of that isn't encouraging waterfront access and use?
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Yes and no. I believe the original proposal called for an all-glass lobby with public access going through the 2 towers to the waterfront on the other side. I wouldn't exactly call that ideal public access to the waterfront, so I think if he fixes that the BRA should let him slide on the height. This is one of the best locations in Boston in many ways.
 
Re: The Boston Arch (Aquarium parking garage)

atlrvr said:
I didn't quite follow your example about the mortgage on IP being sold, specifically what you mean that Chiofaro couldn't service it, since he would be under no obligation to pay himself. If you meant that Chiofaro/Prudential offered to buy the outstanding debt at a discount, even though the building didn't generate enough revenue to cover the mortgage, then its not fraudulent, it was just a way for them to get control of the building on the cheap. TS obviously thought that they could buy the building for the full cost of the mortgage and then foreclose, and be able to control the whole building, and then sell for a profit. I forgot what ended up happening, but obviously he managed to keep control.
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atlrvr, thanks much for the informative insights.

At the time Chiofaro was outbid by TS for the 'mortgage' on International Place, my understanding is that he was not partnered with anybody when he made his losing bid, and later conceded in court documents he couldn't have serviced the debt if he had won. After losing, there apparently then began the tenant wars, with Chiofaro trying to lure tenants in TS-owned buildings in Boston into International Place, and TS retaliating.

Eventually after several years, PREI came to his rescue, and got TS out of the picture (to TS' profit). In doing so, PREI substantially reduced Chiofaro's ownership stake in International Place. To my thinking, presuming that Chiofaro and PREI took a $70 million equity stake out of International Place to help finance the garage purchase, this had to be a joint purchase as Chiofaro no longer had enough equity in International Place to go it alone on the garage. (See article below on financing the other $85 million of the garage purchase.)

Subsequently, valuations for commercial property, even trophy properties, have plummeted. And International Place is facing the exit of its major tenant, Ropes and Gray, this year. So I would think the institutional investors who constitute the trust that PREI put together to buy International Place from TS must be antsy and grumbling. If there is no filling the Ropes and Gray space, the vacancy rate for International Place probably gets to around 25 percent, and that should undercut the valuation of the buildings. One wonders whether the 'mortgage' on International Place now exceeds its value in the current market.

July 2008
The Chiofaro Co. and Prudential Real Estate Investors secured an $85 million loan for the Boston Harbor Garage.


The five- year loan was arranged by Holliday Fenoglio Fowler LP through the Hartford Investment Management Co. The Chiofaro Co. and Prudential Real Estate purchased the garage for about $155 million in December of 2007 and plan to redevelop the property.


Located at 70 East India Road in downtown Boston, the garage contains 1,380 parking spaces and 30,000 square feet of retail space.
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http://boston.bizjournals.com/boston/stories/2008/07/07/daily18.html
 
Re: The Boston Arch (Aquarium parking garage)

TheRifleman said:
Chiofaro should actually invest the 50 Million in building a better Aquarim and link his development to the Aquarim.
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I love this idea. I've considered it often. A nice Aquarium, hotel & residence complex would be great for that area. The Harbor Towers, and Marriott Long Wharf would still be a drain on the waterfront but this would bring it along nicely.
 
Re: The Boston Arch (Aquarium parking garage)

I don't know. A new aquarium would be a really expensive project and I don't think the NEA would be able to raise nearly enough, which means Chiofaro would be footing a big part of the bill with no ROI except more foot traffic for his retail spaces, a small tax break(?), and some good PR. (And, no, making the NEA a for-profit institution is not a good idea)
 
Re: The Boston Arch (Aquarium parking garage)

statler said:
I love this idea. I've considered it often. A nice Aquarium, hotel & residence complex would be great for that area. The Harbor Towers, and Marriott Long Wharf would still be a drain on the waterfront but this would bring it along nicely.
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That's actually a great idea, if perhaps one in a vacuum (as you note, who knows how/if he could get the financials in order). Somebody mentioned previously that the Museum of Science would be one of a small number of appropriate sites for "starchitecture" in the area, and I'd add that the Aquarium site would probably do nicely as well (as would, perhaps, the BoA Pavilion). I don't know what's in Chiofaro's pockets, but if he wants to up the ante and continue to make Menino look like a Luddite donkey, that's an ideal way to do so. Like probably everyone else here, I've always loved the Aquarium but would love to see it renovated/rebuilt.

Also, the more Menino and the BRA try to force everything that gets built by people they don't like in their AOSIs ("areas of special intervention") into a 2-story-tall shoebox, the more I'm reminded of the Marriott Long Wharf and what a spectacular failure it is: A short building, public "access" to the water, lots of "open space," a few token cafes, an accommodating driveway (and, I think, parking?), the requisite amount of brick. It has all of the elements that are, for the BRA/Menino, sine qua non ... and it is such a waste of space. In fact, there's plenty of public access to the water there and at the Aquarium, and it's still a fairly lame experience.
 
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Re: The Boston Arch (Aquarium parking garage)

Wikipedia said:
Sine qua non (pronounced as anglicized /ˌsaɪni kweɪ ˈnɒn/ or more Latinate /ˌsɪneɪ kwɑː ˈnoʊn/)[1] or conditio sine qua non (plural sine quibus non) was originally a Latin legal term for "(a condition) without which it could not be" or "but for..." or "without which (there is) nothing." It refers to an indispensable and essential action, condition, or ingredient.
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Cool. I like learning new terms.
 
Re: The Boston Arch (Aquarium parking garage)

^^That dream died when they went condo.

Unless someone can convince all the owners to sell at once and that would be very, very expensive.
 
Re: The Boston Arch (Aquarium parking garage)

By the time that happens, Chiofaro would have expired.
 
Re: The Boston Arch (Aquarium parking garage)

KentXie said:
By the time that happens, Chiofaro would have expired.
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True...

I actually sort of like the Harbor Towers (from a distance). Their biggest downside (other than the walled fortress they create at street level) seems to be their uber-entitled inhabitants.
 
Re: The Boston Arch (Aquarium parking garage)

the walled fortress they create at street level
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This should be Vivien Li's white whale. It should be her raison d'?tre. I would support her efforts 100%.
 
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Re: The Boston Arch (Aquarium parking garage)

statler said:
I don't know. A new aquarium would be a really expensive project and I don't think the NEA would be able to raise nearly enough, which means Chiofaro would be footing a big part of the bill with no ROI except more foot traffic for his retail spaces, a small tax break(?), and some good PR. (And, no, making the NEA a for-profit institution is not a good idea)
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I have long thought either a large expansion, or bran new NEA would be great for the city. The Aquarium is a decent one, but could be a lot better. It's too bad Boston is not Atlanta where corporate partners throw around massive amount of money to build things, a la the Georgia Aquarium.


I personally would laugh is he kicked out the stores and boarded up the windows.
 
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