Re: Filene's
I hope this project changes the city like no other.... but I fear a Lafayette Mall scenario. There are a few things wrong with this project, storm clouds on the horizon if you will...
1) Gale ripped up DTX and there is no promise at all of financing or tenants at this point. Potentially, we'll have a hole in the heart of an important part of the city, and a developer with his hand out asking for tax credits. The PR team could come up with something like this: "Oh, we didn't know that the T lines would be such a problem, we just need money to mitigate the construction there - it's actually the MBTA's fault for building the tunnels poorly... " - any number of such stories could be concocted. Financing is not available for these projects.
The four major uses of the property:
2) HOTEL: The hotel operator that was "rumored" has not signed, a year later? No hotel operator in place. From what I have heard, luxury hoteliers come to visit the area and are not impressed, at all, with the area. I would expect more like a Marriott than a St. Regis.
3) RETAIL: Big names, big retail tenants have been "rumored" (wonder who's doing his PR?) and yet the only real, tangible announcement is that there will be a Zara (a Spanish Gap). Target, Best Buy, Whole Foods, other big anchors were strongly, strongly pursued - all said "no thanks" - at least for now. The presence at the ICSC was very, very poor for a project of this magnitude.
4) OFFICE: Look at the leasing history at 33 Arch and 101 Arch - this is not the Financial District. Office users view DTX as a pioneering location, and not up to Financial District rents.
5) RESIDENTIAL: Admittedly, I don't know much about this aspect of things, but I did see the BBJ had written an article about sales at 45 Province not doing well. This is not a residential area... yet.
6) This is the kind of development unlike anything Boston has seen before, and yet the developer is marketing it in "black/navy blue corporate real estate" and has named this supposed exciting project "One Franklin Street" - there is no brand or sense of destination - just another building. To some extent this is the same problem 45 Province Street is having - the developers have not created a destination brand, just another building.
So, let's keep our fingers crossed, but I for one and personally very nervous about this project... all it will take is one domino to fall and the whole thing will come together nicely, but each of the uses seems to be waiting for the others to make a move.