Millennium Tower (Filene's) | 426 Washington Street | Downtown

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Re: Filene's

But can enough of it get done sooner so that the Basement can reopen? The new owner of the chain sounds like he's itching to do so.
 
Re: Filene's

http://www.super88market.com/loc.htm

The Herald Street location is still listed. Although I haven't actually been there in about three years. Their location in South Bay is usually packed.

But can enough of it get done sooner so that the Basement can reopen? The new owner of the chain sounds like he's itching to do so.

Can't finish the basement until one knows whats' being built on top of it.
 
Re: Filene's

Boston Globe - May 6, 2009
Developer may alter plan for Filene's site
One idea: Add rental units

By Casey Ross, Globe Staff | May 6, 2009

Developer John Hynes is exploring yet another plan to build his stalled Filene's project, one that would reduce the cost by $250 million and add back 250 residential units to the proposed complex in Boston's Downtown Crossing.

This version is intended to make the development more attractive to lenders, who have been unwilling to fund Hynes so he can resume construction. Hynes, managing partner of Gale International, was forced to halt work on the site in November.

Since then, he has been tinkering with the components of the development, first cutting the number of floors to 32 from 39 and eliminating 150 luxury condominiums. Hynes said yesterday that the new version calls for 38 floors, about 250 rental units, and a more slender design. That would cut the cost to $450 million, from $700 million.

He emphasized, however, that he is only brainstorming and would propose a formal change only if credit markets improve and he is able to attract interest from lenders.

"All we're doing is exploring our options," Hynes said. "We're trying to find a formula that works."

Hynes is still looking for loans of at least $200 million. Currently, the large financial institutions that typically provide such loans are not lending in those amounts. Most institutions are lending less than $50 million, and few are willing to join with other banks to pool funds for a single project, because of concerns about each other's balance sheets.

That has forced Hynes and other developers to seek funding through public sources. Hynes said yesterday that he is seeking tax-exempt bonds through Boston Connects Inc., a nonprofit agency that provides government financial assistance to projects that benefit economically distressed city neighborhoods.

He has also applied for federal stimulus money the state government is distributing to commercial developers, and financial assistance from Boston officials.

"Maybe we can get $100 million from the state, another $50 million from the city, and a bank could step in and provide the missing piece," Hynes said. "We're trying to chip away at it and find something that works. This is new territory for everybody."

John Palmieri, director of the Boston Redevelopment Authority, said the city would entertain requests for assistance but has not received a formal request from Hynes, whose partner in the project is Vornado Realty Trust, a New York City investment firm.

"It's too early to predict what financial assistance we might look at," Palmieri said. "But we would keep the door open to any such proposal, based on the positive features of the plan and its economic impacts."

Casey Ross can be reached at cross@globe.com.

I have altered the plan. Pray I don't alter it any further.
 
Re: Filene's

But can enough of it get done sooner so that the Basement can reopen? The new owner of the chain sounds like he's itching to do so.
The original plan was to open FB much earlier than the rest of the project. A wall would have been built to close in the Burnham Bldg. so that Tower construction could happen independent of what was happening in the Burnham. A sticking point was that City inspectors wanted ALL the safety systems for the ENTIRE Burnham bldg. to be on-line before a CO would be issued for just the FB part. That meant full sprinklers, stairwells, etc all the way to the 9th floor just to open the 4 subterranean levels. With the Developers picking up all these costs and most of the cost of the FB fitout, it was a pretty big chunk-o-change just to get FB open. At least all the abatement was completed. Asbestos was EVERYWHERE in the Burnham. Floors, ceilings, walls, chases, etc. All gone now.
 
Re: Filene's

Hmm. Could the BRA or the City Council override that in the interests of getting the Basement open sooner?
 
Re: Filene's

Having the city waive the normal health/safety/welfare requirements for FB to open early would make the city liable to the insurance companies and general public in the case of an incident. If the city wasn't willing to take that responsibility, there is no way in hell insurance would be granted for the store to operate in that space.

With the current budget shortfalls, I'm not so sure the the city would be willing to take on that large of a liability for a private entity's benefit.
 
Re: Filene's

Just wanna point out I brought up adding rental to this months ago. If you'd like any more expert predictions, I'm available for first communions and bar mitzvahs.
 
Re: Filene's

As an advisor to your campaign, I'm gonna suggest you change that. I'm not getting involved in some Rosemary's Baby scenario.
 
Re: Filene's

Filene?s buyer sees rival for downtown site
Basement battle brewin?

By Donna Goodison | Friday, May 15, 2009 | http://www.bostonherald.com | Business & Markets
Photo
Photo by Herald file

The bidder for a big chunk of the bankrupt Filene?s Basement chain says developer Vornado Realty Trust will try to boot the retailer from its flagship Downtown Crossing space for good.

N.Y.-based Crown Acquisitions expects Vornado to make a competing bid on the lease for the shuttered Boston store.

?Vornado is going to come and try to bid against me for the lease in Boston and get rid of me,? said Stanley Chera, Crown?s founder. ?They don?t want to be bound to put us back there. It?s a shame.?

Crown Acquisitions is offering $22 million for 17 Basement stores plus the lease for the original Downtown Crossing store that closed in August 2007 to make way for Vornado and Gale International?s $550 million One Franklin project.

But the project stalled in November due to the developers? inability to secure financing. That has delayed this year?s planned reopening of the 100-year-old Filene?s Basement store, which was famous for its automatic markdown system and had been a top city tourist attraction.

The Basement?s lease, which runs until 2024, requires the company to pay only $2.27 per square foot for its 125,000 square feet of subterranean space, according to court documents. It also provides for four five-year extensions.

Chera believes those choice terms are motivating Vornado. ?Two dollars a foot for anything is cheap,? he said.

By contrast, the Basement pays around $44 per square foot for its 38,625-square-foot Boylston Street store and more than $30 per square foot for its 28,000-square-foot Newton store.

Vornado and Gale International did not return calls for comment.

Chera said the Downtown Crossing store is a crucial part of the chain. ?It?s like telling me you?re going to take Macy?s from 34th Street (in New York) and put something else there,? he said. ?It?s part of the history of downtown Boston.?

Laura Davis Jones, the Basement?s bankruptcy attorney, said all expressions of interest in the chain?s assets are confidential.

?Nothing would surprise me,? she said. ?We have had a lot of interest in the assets.?
Article URL: http://www.bostonherald.com/business/general/view.bg?articleid=1172401

This is a very savvy move on Vorando's part.

It just so happens that it completely sucks for Boston.
 
Re: Filene's

I don't understand what would invalidate the lease. Filene's Basement may be bankrupt, but the prospective buyer (Crown) wants to keep the lease. The bankruptcy doesn't invalidate the lease unless the bankrupt tenant wants to reject it (and the bankruptcy judge agrees to the rejection).
 
Re: Filene's

^^

?Vornado is going to come and try to bid against me for the lease in Boston and get rid of me,

Vornado is trying to outbid Crown. And as FB is struggling to keep profitable as it is, Crown won't be able to afford a bidding war.

Once again proving that the smartest business moves are also usually the most evil.
 
Re: Filene's

Ron, see post 1300. Meanwhile...

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L1120665.jpg
 
Re: Filene's

this scares me....

the last time I saw roofers they set the roof of the Admin building at my school on fire!
 
Re: Filene's

I may not understand the bankruptcy auction process properly. Are these 17 leases up for bid only as a unit, or individually? I doubt Vornado wants to deal with 16 other leases -- and continuing the operation of a chain store in those 16 locations -- just to get rid of this one lease.
 
Re: Filene's

The lease (at such a low rate and with liquidated damages) is a valuable asset. The Bankrupcy Trustee will split the assets up what ever way will yield the highest return.
 
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