Hines JV Obtains $870M Loan for Boston Redevelopment Project
The developers are planning to convert the city's historic South Station transit hub into a 1.9 million-square-foot commercial and residential project.
Hines, APG Groep NV and Dune Real Estate Partners have secured an $870 million loan for the redevelopment of South Station, one of Boston’s busiest transportation hubs. JLL arranged the financing with The Children’s Investment Fund on behalf of the three firms. The first phase of the long-awaited, 1.9 million-square-foot project includes a 1.2 million-square-foot mixed-use tower.
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Located between Boston’s central business district and the metro’s Seaport District, the initial phase of the 51-story project will rise above the historic, 1898-built transit station. South Station provides access to Logan International Airport, as well as the area’s primary highways, including Interstate 93 and the Massachusetts Turnpike.
Initially, the project was first approved by the City of Boston in 2006, but it was delayed due to 2006 and 2007 market conditions. In 2016, Hines announced that it had found new partners for the project, but APG Groep NV and Dune replaced the Chinese-based firm in October 2019.
Commercial, residential space
The first phase of the project is set to include roughly 660,000 square feet of Class AA office and retail space, as well as 166 condominium units and more than 500 parking spaces. The anticipated completion for the first phase of the project is 2024. Pelli Clark Pelli Architects is the designer of the project, which is set to meet LEED Gold standards.
The office element of the structure will feature 26,000-square-foot, primarily column-free floorplates with views of downtown Boston and Boston Harbor. The residential component of the tower consists of studios, one-, two- and three-bedroom units, along with penthouse duplex units. Amenities are slated to include a private lobby, outdoor space, office and residential lobbies, a conference center, a fitness center, a landscaped terrace with an outdoor pool, cooking and entertaining space and an on-site restaurant.
The JLL Capital Markets team that represented the borrower was led by Senior Managing Director Riaz Cassum and Senior Director Jennifer Keller.