Rising construction costs and a slowdown in the luxury rental market may accomplish what neighborhood opposition could not: put the brakes on a 44-story apartment tower in Boston’s West End.
Developer Equity Residential is taking a wait-and-see attitude on development sites in coastal markets, CEO David Neithercut said.
“We’ve got some sites that we currently have in L.A. and in the Bay Area and in Boston that we could do something on but we’re not going to pursue those very aggressively at the current time,” Neithercut told analysts this week during a conference call to discuss the company’s second-quarter quarter earnings. “The teams continue to work on them, but we’ll just sort of see how things play out.”
Neithercut attributed the company’s cautious development outlook to rising construction costs and current yields.
http://www.bankerandtradesman.com/2017/07/developer-raises-doubts-west-end-tower/