?All That?s Left Is The Hard Stuff?
How One City Block Symbolizes Boston?s Future Development Struggles
By Paul McMorrow
Banker & Tradesman Staff Writer
City planners have big plans for this little Greenway block.Much of the chatter about the Boston Redevelopment Authority?s new regulations for development along the Rose Kennedy Greenway has centered around where dense new buildings won?t be able to rise ? at the Harbor Garage and the Hook Lobster site.
There?s less talk about the spots where the planning agency does see putting the 2 million to 3 million square feet of new development it envisions constructing along the mile-long parks system.
Some significant redevelopment plays exist in the BRA?s new guidelines. And one of the biggest ? a 600-foot tower planners envision rising on the block between 99 High St. and 125 High St. ? has every bit the intrigue swirling around the development sites across the street.
The BRA and its outside planning consultant, Boston-based architectural firm Utile, have said the block bound by Pearl, Congress and High Streets could easily accept the type of dense new development Don Chiofaro is trying desperately to construct across the street, at the Harbor Garage.
The current draft of the new Greenway regulations have this block, dubbed the Richardson block, ticketed for a 52-story, 900,000-square-foot residential and hotel tower. At that height, the Richardson block tower would soar above its neighbor at 125 High St., and match the height of Chiofaro?s International Place, which sits just two doors down.
Making Infeasible, Feasible
Timothy Love, a principal at Utile, said the firm identified potential Greenway development sites by matching up vacant spots with the buildings around them, and then running those specs through a set of tests meant to shield the Greenway from adverse environmental effects.
?It?s hyper-contextual,? Love said. ?We wanted to make the city, in total, as coherent as possible. We reinforced what?s already working well.?
That meant keeping development on the Greenway?s harbor edge low and permeable, while letting construction on the downtown side rise to meet Financial District towers. He said density at the Richardson block would throw no new shadows on the Greenway, while helping to create an urban edge he compared to Central Park West.
?It?s not a sensitive location in terms of impact,? added Kairos Shen, the BRA?s chief planner. ?It?s part of the core Financial District. It?s not really interrupting the relationship between the Harbor and the Greenway.?
When he unveiled the new guidelines, Shen characterized the new development envelopes as being about ?long-term value for the city,? and ?not about financial feasibility.?
?It is not the responsibility of the city to make feasible projects that would otherwise be infeasible,? he said at the time.
That comment was seen as a slap at Chiofaro. But the other side of that coin is that some parts of the BRA guidelines push height toward sites that are difficult to build on.
?The city is mostly built already,? Utile?s Love argued. ?This isn?t Houston. All that?s left is the hard stuff.?
A Challenging Challenge
Outside of the sea of parking lots populating the South Boston waterfront, there are few pure development sites left in the city. Most projects come with some degree of hair on them, from legal hurdles and complicated assemblage tasks, to unusual building footprints and tricky reuse challenges.
The Richardson block falls on the more challenging end of these already challenging sites. Nine different owners control property in the building?s potential footprint. Their aggregate assessed value is around $45 million, according to data obtained from Banker & Tradesman publisher The Warren Group, though recently sold properties on the block went for far above assessed value.
In 2007, New York-based real estate investor Brickman paid $41.6 million for 230 Congress St., a property assessed at $31 million. The building has a significant level of tenant improvements in place to accommodate a roster of telecom companies.
A BlackRock real estate fund paid $14 million for 121 High St. and 125 Pearl St. in 2007. The pair was assessed at under $6 million, total. BlackRock bought out Berkeley Investments, a firm that had considered assembling the block for large-scale redevelopment before selling. Brickman and BlackRock did not return calls for comment.
?There?s obviously some interest? in an assemblage, said Jonathan Peabody, part owner of Peabody Office Furniture. The Peabody family has controlled the building at 236 Congress St. for decades.
?A lot of exciting things have gone on around us,? Peabody said. ?It?s a challenging block. That?s been proven over the past few years. It?s a fabulous location, but I don?t know whether it will ever happen. The problem is, everybody on the block thinks their building is the most valuable.?
?It?s an assembly challenge, and it?s a preservation challenge,? said Peter Gori, the BRA planner in charge of the Greenway development guidelines. ?But what?s there now doesn?t contribute.?
Assemblage could be eased by building on the Brickman side of the block, and the alley running next to it, he said. He believes that residential and hotel uses mesh with the InterContinental across the street, and said a tower on the site, ?has the potential to be on the level of a Four Seasons or a Mandarin.?
Shen compared a possible redevelopment to another site across the Greenway, Russia Wharf. At that site, Boston Properties preserved historic low-rise buildings while building a tower above.
?Today the price of assembling is different than it was a few years ago,? he argued. ?Feasibility changes as the market changes and the price changes. Over time, the fact that the Greenway will thrive as an urban park will make sure that values appreciate exponentially.?