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Karp, Related may buy part of site owned by News Corp.
By Chris Reidy, Globe Staff | June 16, 2006
Developer Stephen R. Karp said yesterday that he has been approached by News Corp. about a deal to buy some of the nearly 24 acres of South Boston Waterfront land that it recently purchased from Los Angeles Dodgers owner Frank H. McCourt Jr.
With Related Urban Development of New York as a partner, Karp said he'd be interested in considering a deal for land he believes is well-suited for development that would include a large retail component to draw more people and shoppers to the area.
``We've agreed to explore this together," added Kenneth A. Himmel , chief executive of Related Urban Development .
Last week, consultants for News Corp. said Rupert Murdoch's media company is willing to sell half or more of the prized location as a way to attract a development partner.
Other developers also have expressed interest in the land, said Rob Griffin , president of Cushman & Wakefield of Massachusetts Inc. , which has been hired by News Corp. to be its broker. Griffin declined to identify the other developers.
Today the South Boston land is mostly parking lots, but Karp, chairman of New England Development , said the site may be ideal for a project that includes lots of retail space. In his view, a shopping area with a department store anchor like Nordstrom would draw a lot more people to the area and could help jump-start the long-stalled vision for enlivening that part of the city.
The new Boston Convention & Exhibition Center has brought many visitors to the area and a handful of buildings have gone up recently, but stores and restaurants also are needed.
``Retail is the catalyst," said Karp, who has developed many shopping malls, including CambridgeSide Galleria.
The biggest complaint he hears from people about the South Boston Waterfront, Karp said, is: ``There's no place to shop. There's no place to eat."
Karp, who spoke to reporters after addressing a Greater Boston Chamber of Commerce breakfast, said the News Corp. site could support 5 million square feet of mixed-use development that might include office space and a hotel; about 1 million square feet of that total could be retail.
By way of comparison, the Prudential Tower has just under 1.2 million square feet of rentable space.
Meanwhile, on a nearby site, another development team is proceeding with plans to build something similar to the scenario Karp described for the News Corp. land.
In 2004, a team including Drew Co. filed plans with the city for Waterside Place, which proposes to occupy about 11 acres over and around Interstate 90 between the convention center and the World Trade Center.
Developers envision a large retail component and said they have talked with Nordstrom, Target, and others as possible anchors.
A spokeswoman for Nordstrom Inc. said the Seattle-based chain has no plans to open a store in the city . Nordstrom has previously disclosed plans to open four stores in the suburbs.
Yesterday John E. Drew, president of Drew Co., said there might be a limit to how much retail space the South Boston Waterfront can absorb. Waterside Place and Waterside Crossing, an adjacent project he's working on, hope to bring more than 800,000 square feet of retail to the area, he said.
If the Waterside projects go according to plan, it could be hard to build 1 million square feet of retail space nearby, Drew said.
``Maybe you could build another 250,000 square feet" on the News Corp. site, he said.
Drew hopes to get city approvals shortly and begin construction on Waterside Place next year.
One impediment for the News Corp. land is that it has not been through the long city and state permitting process.
But its proximity to downtown and the Financial District makes it a strong candidate to be a retail mecca, said Himmel, who like Karp has extensive experience with retail development.
The nearly 24 acres once owned by McCourt will play a major role in the hoped-for transformation of the South Boston Waterfront, Himmel said.
How much News Corp. paid McCourt has never been publicly disclosed, but an executive involved in the transaction has said the price was about $225 million.
Some other South Boston Waterfront properties envisioned for redevelopment, including Karp's Pier 4 project, don't have the right layout to accommodate enough retail to draw large numbers of people from outside the area, Karp said.
The first phase of the Fan Pier project under developer Joseph F. Fallon calls for mostly housing, a hotel, and office space.
By Chris Reidy, Globe Staff | June 16, 2006
Developer Stephen R. Karp said yesterday that he has been approached by News Corp. about a deal to buy some of the nearly 24 acres of South Boston Waterfront land that it recently purchased from Los Angeles Dodgers owner Frank H. McCourt Jr.
With Related Urban Development of New York as a partner, Karp said he'd be interested in considering a deal for land he believes is well-suited for development that would include a large retail component to draw more people and shoppers to the area.
``We've agreed to explore this together," added Kenneth A. Himmel , chief executive of Related Urban Development .
Last week, consultants for News Corp. said Rupert Murdoch's media company is willing to sell half or more of the prized location as a way to attract a development partner.
Other developers also have expressed interest in the land, said Rob Griffin , president of Cushman & Wakefield of Massachusetts Inc. , which has been hired by News Corp. to be its broker. Griffin declined to identify the other developers.
Today the South Boston land is mostly parking lots, but Karp, chairman of New England Development , said the site may be ideal for a project that includes lots of retail space. In his view, a shopping area with a department store anchor like Nordstrom would draw a lot more people to the area and could help jump-start the long-stalled vision for enlivening that part of the city.
The new Boston Convention & Exhibition Center has brought many visitors to the area and a handful of buildings have gone up recently, but stores and restaurants also are needed.
``Retail is the catalyst," said Karp, who has developed many shopping malls, including CambridgeSide Galleria.
The biggest complaint he hears from people about the South Boston Waterfront, Karp said, is: ``There's no place to shop. There's no place to eat."
Karp, who spoke to reporters after addressing a Greater Boston Chamber of Commerce breakfast, said the News Corp. site could support 5 million square feet of mixed-use development that might include office space and a hotel; about 1 million square feet of that total could be retail.
By way of comparison, the Prudential Tower has just under 1.2 million square feet of rentable space.
Meanwhile, on a nearby site, another development team is proceeding with plans to build something similar to the scenario Karp described for the News Corp. land.
In 2004, a team including Drew Co. filed plans with the city for Waterside Place, which proposes to occupy about 11 acres over and around Interstate 90 between the convention center and the World Trade Center.
Developers envision a large retail component and said they have talked with Nordstrom, Target, and others as possible anchors.
A spokeswoman for Nordstrom Inc. said the Seattle-based chain has no plans to open a store in the city . Nordstrom has previously disclosed plans to open four stores in the suburbs.
Yesterday John E. Drew, president of Drew Co., said there might be a limit to how much retail space the South Boston Waterfront can absorb. Waterside Place and Waterside Crossing, an adjacent project he's working on, hope to bring more than 800,000 square feet of retail to the area, he said.
If the Waterside projects go according to plan, it could be hard to build 1 million square feet of retail space nearby, Drew said.
``Maybe you could build another 250,000 square feet" on the News Corp. site, he said.
Drew hopes to get city approvals shortly and begin construction on Waterside Place next year.
One impediment for the News Corp. land is that it has not been through the long city and state permitting process.
But its proximity to downtown and the Financial District makes it a strong candidate to be a retail mecca, said Himmel, who like Karp has extensive experience with retail development.
The nearly 24 acres once owned by McCourt will play a major role in the hoped-for transformation of the South Boston Waterfront, Himmel said.
How much News Corp. paid McCourt has never been publicly disclosed, but an executive involved in the transaction has said the price was about $225 million.
Some other South Boston Waterfront properties envisioned for redevelopment, including Karp's Pier 4 project, don't have the right layout to accommodate enough retail to draw large numbers of people from outside the area, Karp said.
The first phase of the Fan Pier project under developer Joseph F. Fallon calls for mostly housing, a hotel, and office space.
