A South End mixed-use project has defaulted on its loans, according to the Boston Business Journal.
The Crosstown Center is a hotel, retail and parking development located at the corners of Melnea Cass Boulevard and Massachusetts Avenue in the South End neighborhood of Boston. One Crosstown Center is a 175-room Hampton Inn and Suites with 20,000 square feet of retail space. Two Crosstown Center is a 210,000-square-foot Class A office complex now fully leased to Boston University, Boston Medical Center, Brigham and Women’s Hospital and associated retailers. Three Crosstown Center, most-recently completed, is a 225,000-square-foot office building is comprised of nine floors with 20,000 to 25,000-square-foot floor plates.
The first two buildings seem to have been quite successful – the retail spaces are occupied and the office space, as mentioned above, is rented out. The third building is larger and would take time to fill up, standard for any commercial development.
So, the problem seems to be financial management, not the project itself.
Some history on the project, from the BBJ:
In 2002, the City of Boston, through the through the Industrial Development Financing Authority, issued $43.4 million in bonds to help finance the $140 million development of a Hampton Inn & Suites hotel, retail space and parking at 811 Massachusetts Ave. in the city’s Roxbury neighborhood. At the time, [Boston Mayor Thomas Menino] developer Kirk Sykes fought for the project and heralded it as one of the largest minority-owned developments in the country.
I don’t understand how the city “issued bonds” but isn’t party to the default. If the borrower can’t pay back the loans, doesn’t that mean that the city is out the money?
This is a great project and a welcomed addition to the neighborhood. It brings vibrancy to an otherwise moribund street corner. I hope it all works out!
Related posts:
- Hooray! Landmark Center gets upgrade bid by developer
- Columbus Center project goes down for the count
- The Clarendon Back Bay Boston condominium project has first closing
- Columbus Center project is officially dead; the last word is mine
- Boston Redevelopment Authority approves multiple projects and developments
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