Re: Filene's
Hynes says demand high for Filene?s retail space
By Scott Van Voorhis | Thursday, January 31, 2008 | http://www.bostonherald.com | Business & Markets
The $650 million redevelopment of the Filene?s block in Downtown Crossing is drawing a flurry of interest from retailers, with demand for space far outstripping the available storefronts, top project executive John Hynes said yesterday. But plans for a large anchor store have been shelved in favor of a mix of small and mid-sized retailers, he added.
So far, the Downtown Crossing project has fielded proposals from retailers totaling 500,000 square feet, according to Hynes.
That far exceeds the 150,000 square feet of store and shop space planned for the new One Franklin, which will feature a 39-story office, hotel, retail and condo complex next door to a renovated Filene?s building.
Spanish retailer Zara?s, Club Monaco and Best Buy have all expressed varying degrees of interest, industry executives said.
Hynes said it?s a vote of confidence for City Hall?s drive to revive the beleaguered retail district. The redevelopment of the Filene?s block, a partnership between Hynes and New York retail developer Vornado, is considered the centerpiece of the city?s efforts to pump new life into the shopping district.
?They are buying into the rebirth of Downtown Crossing,? said Hynes, a downtown tower builder whose father is newscaster Jack Hynes and whose grandfather was a Boston mayor.
But the new complex will not feature a big-box anchor store to replace Filene?s, which closed last year. While Target was seen as a candidate, the configuration of the loading docks didn?t work, Hynes said.
Instead, the project will feature several mid-size stores and small shops. A revamped and expanded Filene?s Basement, occupying 250,000 square feet in the lower levels, will serve as the anchor.
In the next big step, work crews are preparing to tear down some of the modern additions to the 1912 Filene?s building. By June, the block will be largely cleared, with construction of the tower set to follow.
While equity financing is lined up, Hynes said he is still firming up the construction loan. The banks he has been negotiating with have insisted on increasing the pool of lenders involved from three to as many as five. Given the turmoil in the capital markets, the larger group is seen as a way to spread the risk.
Article URL:
http://www.bostonherald.com/business/general/view.bg?articleid=1070185
