Friday, October 16, 2009 | Modified: Monday, October 19, 2009, 9:32am EDT
Lovejoy Wharf delays lead owners to consider sale
Boston Business Journal - by Michelle Hillman
The owners of the dilapidated Lovejoy Wharf in Boston?s North End are pondering the sale of the residential project after years of stalled development.
Industry sources, who asked to remain anonymous, said the current owners ? Ajax Investment Partners LLC, AIG Global Real Estate and Anglo-Irish Bank Corp. PLC ? are evaluating a possible sale or the addition of a new financial partner.
Jason Miller, a principal in Ajax?s New York office, declined to comment. Locally, Ajax hired Colliers Meredith & Grew to determine the level of interest among potential buyers or investors, according to sources. Leigh Freudenheim, a senior vice president and partner at Colliers, confirmed he is the building agent but declined to comment further.
The project, which is approved by the Boston Redevelopment Authority, is being marketed quietly. Sources said if the project were to be sold, the proceeds would likely go toward paying down senior debt, with Ajax getting little or no profit from the sale. However, an outright sale is considered unlikely since there is little to no demand for new condo developments in Boston.
Lovejoy Wharf, which gained attention for being the first project in Boston where a 300-space automated garage would be built, was supposed to break ground in the summer of 2007 and be completed this year. At the time, the 455,000-square-foot project was reported to cost $200 million and include 250 residential units and 40,000 square feet of retail space featuring a 300-seat restaurant.
Ajax planned to demolish the top two floors of the site?s existing nine-story building, known as the Hoffman Building, at 160 North Washington St. and add four new floors, according to Ajax?s Web site.
It also would construct a 14-story structure and demolish the current building at 131 Beverly St. Lovejoy Wharf is located on the harbor between Boston?s North End and Charlestown neighborhoods. It is near the TD Garden and has views of the Leonard P. Zakim Bunker Hill Bridge.
The project struggled to get off the ground after the developers angered nearby residents of Strada 234 who, in 2005, said the building heights would block their views. The tallest portion of the project would reach a height of 155 feet. Residents of Strada 234 sued the developers and have tied the project up in court. A new owner would likely face the same push-back from neighbors, said Vivien Li, executive director of Boston Harbor Association.
Li said a new buyer or investor might want to scale back the project or reduce the number of residential units as other developers across the city have done.
?I think with the economy the way it is I don?t know if we?ll hear or see anything in the near future,? Li said.
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