Fan Pier may get apartments
Developer eyes 12-story tower
By Thomas Grillo | Thursday, April 29, 2010 |
http://www.bostonherald.com | Real Estate
The developer of Fan Pier said the credit markets are loosening up and the next phase of the stalled project could be three years away.
?Up until now, no one has wanted to talk about lending, but activity has picked up,? said Joseph Fallon, the Fallon Co.?s president and chief executive and developer of the $3 billion waterfront project.
In an interview following a NAIOP trade group forum about retail?s future on the waterfront, Fallon said he is talking with lenders about construction of a 12-story apartment tower. If he can secure the cash, the building would launch the next phase of Fan Pier, which has approval for seven more buildings to complete the three million combined square feet of residential, commercial and retail space. The law firm Fish & Richardson is planning to move into 125,000 square feet of space at One Marina Park Drive, the project?s first office building, but Fallon is seeking tenants for the rest of the 18-story tower.
While construction of a hotel for Fan Pier is a long way off, he said the rental market is ?hot? and the need for new condominiums downtown is ?not that far away.?
?There?s lots of absorption that has to happen first,? Fallon said, referring to unsold units at 45 Province, the Clarendon, Battery Wharf and the W Hotel and Residences, whose developer declared bankruptcy yesterday. ?I?m projecting that will happen in three years and the signals today are very positive.?
George Fantini, chairman of Fantini & Gorga, a real estate financing firm in Boston, said while it?s true that banks and insurance companies are lending, the money is going to refinance existing buildings that are fully leased.
?There?s been a sea change in the last six months with regard to the desire of lenders to refinance loans,? he said. ?But money for new construction is not there yet.?