Bulfinch Crossing | Congress Street Garage | West End
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tmac9wr
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Re: Congress Street Garage Development
True. But that's exactly how they're expecting the recovery to be for now: weak. We're able to lose jobs while technically "recovering" because these job losses are planned. At the beginning of the recession, jobs were getting chopped purely out of panic. However, at this point it's been 2 1/2 years since the introduction of the credit crisis (the collapse of Bear Stearns hedge funds in June of 2007 was basically the *pop* of the real estate/subprime bubble), and most job cuts are a result of planned reductions in order to cut costs, etc, etc.
From what I've heard, job growth is expected to occur later this year...hopefully around Q3. Until then, I don't see much chance major developments start unless they're being built on speculation, which doesn't happen often.
True. But that's exactly how they're expecting the recovery to be for now: weak. We're able to lose jobs while technically "recovering" because these job losses are planned. At the beginning of the recession, jobs were getting chopped purely out of panic. However, at this point it's been 2 1/2 years since the introduction of the credit crisis (the collapse of Bear Stearns hedge funds in June of 2007 was basically the *pop* of the real estate/subprime bubble), and most job cuts are a result of planned reductions in order to cut costs, etc, etc.
From what I've heard, job growth is expected to occur later this year...hopefully around Q3. Until then, I don't see much chance major developments start unless they're being built on speculation, which doesn't happen often.
tmac9wr
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BostonYoureMyHome
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Re: Congress Street Garage Development
I really hope we see some job growth in Q3. But when Q3 gets here they'll say Q2 2011.etc. etc.
As far as spec construction, it was extremely common until recently. Locally, Fan pier, Atlantic Wharf, not to mention a majority of the office space in the suburbs...to name a few.
I really hope we see some job growth in Q3. But when Q3 gets here they'll say Q2 2011.etc. etc.
As far as spec construction, it was extremely common until recently. Locally, Fan pier, Atlantic Wharf, not to mention a majority of the office space in the suburbs...to name a few.
tmac9wr
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Re: Congress Street Garage Development
Ehhh, I'm not sure. Analysts have been pretty conservative lately. Many didn't expect we would be this far along at this point, so we'll see what happens.
Wow, I didn't realize that. However I doubt you're going to see much lending to a project being built in this economic environment purely on speculation.
Ehhh, I'm not sure. Analysts have been pretty conservative lately. Many didn't expect we would be this far along at this point, so we'll see what happens.
Wow, I didn't realize that. However I doubt you're going to see much lending to a project being built in this economic environment purely on speculation.
BostonYoureMyHome
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Re: Congress Street Garage Development
^Agreed
^Agreed
SeamusMcFly
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Re: Congress Street Garage Development
"Money can be exchanged for goods and services."
Oh boy. nothing like Homer to help me end a Friday at work. Enjoy the weekend.
"Explain how."
"Money can be exchanged for goods and services."
Oh boy. nothing like Homer to help me end a Friday at work. Enjoy the weekend.
AmericanFolkLegend
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Re: Congress Street Garage Development
Wasn't Wellington always the anchor tenant at Atlantic Wharf?
Wasn't Wellington always the anchor tenant at Atlantic Wharf?
BostonYoureMyHome
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Re: Congress Street Garage Development
^^I know Wellington signed on early, but I don't believe it was before demolition had begun. Correct me if I am wrong.
^^I know Wellington signed on early, but I don't believe it was before demolition had begun. Correct me if I am wrong.
palindrome
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Re: Congress Street Garage Development
I believe thats correct, at least publicly it looks like the project was fully funded before signing a tenant, but there might have been earlier meetings before it was funded that were not public.
I believe thats correct, at least publicly it looks like the project was fully funded before signing a tenant, but there might have been earlier meetings before it was funded that were not public.
BostonYoureMyHome
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Re: Congress Street Garage Development
Even if that were the case, more than half the building would still have been constructed on spec.
Even if that were the case, more than half the building would still have been constructed on spec.
TheRifleman
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Re: Congress Street Garage Development
After Russia Wharf is their any big projects that are in the PIPELINE?
Filene's Looks all but done.
After Russia Wharf is their any big projects that are in the PIPELINE?
Filene's Looks all but done.
Re: Congress Street Garage Development
Tuesday, April 6, 2010, 1:29pm EDT
Congress Street complex hurting for cash
Boston Business Journal - by Tim McLaughlin
The 1.2 million square-foot parking and office complex at One Congress Street is hurting for cash.
The borrower on the so-called Government Center Garage recently asked to tap a reserve fund to meet monthly shortfalls, according to documents provided by loan servicers.
The site has been the subject of ambitious plans undone by the recession and a recent change in ownership. About a year ago, Ted Raymond?s Raymond Property Co. proposed razing the garage to build a pair of office towers replete with condos, restaurants, a hotel and other retail space.
But earlier this year, Raymond stepped aside for Thomas O?Brien, a former redevelopment chief for the city. O?Brien?s HYM Investment Group LLC has been working to get tenants to fill space vacated by the Environmental Protection Agency.
One Congress Street, meanwhile, carries a mortgage of nearly $209 million that is split into two loans, $190 million and $18.5 million, respectively, according to U.S. regulatory filings. The National Electrical Benefit Fund, a multibillion dollar pension fund in Washington D.C., is the guarantor on the debt.
Fitch Ratings, in a report this month, labeled the $190 million loan on One Congress as a ?loan of concern,? citing the property?s crimped cash flow.
Fitch said two prospective tenants are considering a total of 170,000 square feet of space at rents slightly below the former EPA lease that was done through the Government Services Administration.
?The borrower has requested draws from the debt service reserve to fund monthly shortfalls,? Fitch said in its report.
The $190 million loan for One Congress Street is one of the largest inside a $7.9 billion commercial mortgage-backed securities deal that was put together in 2007 by Wachovia Bank and Wall Street firms. The lender on the loan is Artesia Mortgage Capital Corp.
But as a buffer, at least three separate reserves were set up at the time the loan was originated.
Those reserves included $4.5 million for meeting debt service payments; $4.5 million for hitting lease targets; and $2.4 million for capital expenditures, according to filings connected to the CMBS deal.
In February, the $190 million loan was evaluated by Boston-based DebtX, which estimated it was worth about 80 cents on the dollar.
One Congress Street needs to generate enough cash to make interest payments on the loan, which doesn?t mature until 2014. Monthly payments on the loan, which comes with an annual interest rate of 6.07 percent, range from about $900,000 to about $994,000, according to Bloomberg data.
Given the increase in vacancy rates and falling property values in Boston, Fitch has determined the property is heavily leveraged. The rating agency pegs the loan-to-value ratio at nearly 130 percent.
http://www.bizjournals.com/boston/stories/2010/04/05/daily23.html
Tuesday, April 6, 2010, 1:29pm EDT
Congress Street complex hurting for cash
Boston Business Journal - by Tim McLaughlin
The 1.2 million square-foot parking and office complex at One Congress Street is hurting for cash.
The borrower on the so-called Government Center Garage recently asked to tap a reserve fund to meet monthly shortfalls, according to documents provided by loan servicers.
The site has been the subject of ambitious plans undone by the recession and a recent change in ownership. About a year ago, Ted Raymond?s Raymond Property Co. proposed razing the garage to build a pair of office towers replete with condos, restaurants, a hotel and other retail space.
But earlier this year, Raymond stepped aside for Thomas O?Brien, a former redevelopment chief for the city. O?Brien?s HYM Investment Group LLC has been working to get tenants to fill space vacated by the Environmental Protection Agency.
One Congress Street, meanwhile, carries a mortgage of nearly $209 million that is split into two loans, $190 million and $18.5 million, respectively, according to U.S. regulatory filings. The National Electrical Benefit Fund, a multibillion dollar pension fund in Washington D.C., is the guarantor on the debt.
Fitch Ratings, in a report this month, labeled the $190 million loan on One Congress as a ?loan of concern,? citing the property?s crimped cash flow.
Fitch said two prospective tenants are considering a total of 170,000 square feet of space at rents slightly below the former EPA lease that was done through the Government Services Administration.
?The borrower has requested draws from the debt service reserve to fund monthly shortfalls,? Fitch said in its report.
The $190 million loan for One Congress Street is one of the largest inside a $7.9 billion commercial mortgage-backed securities deal that was put together in 2007 by Wachovia Bank and Wall Street firms. The lender on the loan is Artesia Mortgage Capital Corp.
But as a buffer, at least three separate reserves were set up at the time the loan was originated.
Those reserves included $4.5 million for meeting debt service payments; $4.5 million for hitting lease targets; and $2.4 million for capital expenditures, according to filings connected to the CMBS deal.
In February, the $190 million loan was evaluated by Boston-based DebtX, which estimated it was worth about 80 cents on the dollar.
One Congress Street needs to generate enough cash to make interest payments on the loan, which doesn?t mature until 2014. Monthly payments on the loan, which comes with an annual interest rate of 6.07 percent, range from about $900,000 to about $994,000, according to Bloomberg data.
Given the increase in vacancy rates and falling property values in Boston, Fitch has determined the property is heavily leveraged. The rating agency pegs the loan-to-value ratio at nearly 130 percent.
http://www.bizjournals.com/boston/stories/2010/04/05/daily23.html
tobyjug
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Re: Congress Street Garage Development
Did you ever wonder why there isn't much Art Deco in Boston? Someday, someone might comment on our times by saying that there isn't much Tokyo sky tree (or whatever) around here.
Did you ever wonder why there isn't much Art Deco in Boston? Someday, someone might comment on our times by saying that there isn't much Tokyo sky tree (or whatever) around here.
KentXie
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Re: Congress Street Garage Development
From our last boom we constructed 2 towers above 500ft, 3 towers from 400-499ft, possibly 4 towers from 300-399ft, and I believe 4 towers in the range of 250-299ft. Pretty pitiful to me.
From our last boom we constructed 2 towers above 500ft, 3 towers from 400-499ft, possibly 4 towers from 300-399ft, and I believe 4 towers in the range of 250-299ft. Pretty pitiful to me.
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Re: Congress Street Garage Development
You Debbie Downers piss me off so much.
You Debbie Downers piss me off so much.
KentXie
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Re: Congress Street Garage Development
Give me one reason why I shouldn't be because you're probably seeing something I am not.
Give me one reason why I shouldn't be because you're probably seeing something I am not.
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Re: Congress Street Garage Development
The entire nation is in this recession and you are complaining that we only built 13 towers in the last decade. Give me a fucking break dude! You know how well off Boston is, how lucky it is, how much of a power house it still is? Boston is BLESSED it has as few stalled projects as it does. I can show you a single street in New York that has more stalled projects on it than Boston does. The amount of Boston self loathing on this board really pisses me off.
The entire nation is in this recession and you are complaining that we only built 13 towers in the last decade. Give me a fucking break dude! You know how well off Boston is, how lucky it is, how much of a power house it still is? Boston is BLESSED it has as few stalled projects as it does. I can show you a single street in New York that has more stalled projects on it than Boston does. The amount of Boston self loathing on this board really pisses me off.