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CMA
April 05, 2019  

Boston Tower Developer Shopping for Loan

The joint venture developing a new Boston headquarters for State Street is in the market for $570 million of debt.

National Real Estate Advisors and Carr Properties will build the 987,000-square-foot tower at One Congress Street in the Government Center district. Newmark is handling the loan search for the two Washington firms, which plan to begin the project this summer.

The partners are considering a broad menu of options. They’re taking quotes on fixed- or floating-rate debt and will consider typical short-term project financing or a longer-term package that converts from construction to permanent financing.

The office building would be the centerpiece of Bullfinch Crossing, a 2.9 million-sf development that would also include two residential towers with more than 800 units, a hotel/condo building, an 83,000-sf retail component and a smaller office building.

The debt request follows the signing of State Street as the anchor tenant for One Congress Street. In a deal announced in January, the bank pre-leased 510,000 sf, or more than half the space, for 15 years. State Street will move from its current location at One Lincoln Street, a mile away, when the new building is finished in 2023.

Plans for One Congress call for a 43-story building with an elliptical footprint and a sweeping, winged curtain wall. It will offer panoramic views of the city and Boston Harbor. The building will have a three-story lobby, a one-acre roof deck, a fitness center and street-level retail space. It is expected to qualify for a LEED gold designation.

Bulfinch Crossing is being developed on the site of Government Center Garage, which National Real Estate bought in 2007. It tapped local investment firm HYM Investment as a partner in 2010 to help lead the project. In September, National Real Estate brought in Carr as its joint-venture partner on One Congress. HYM doesn’t appear to have an equity stake in that portion of the development.

Construction began on the first piece of the complex, a 45-story residential tower, in early 2017. It’s slated to be completed in 2020. That building will contain 368 apartments and 55 condominium units, with amenities including a rooftop garden, concierge service, a fitness facility and a pool.

The 2,310-space garage that’s being demolished to make way for the complex occupies the two-block parcel between New Chardon and Sudbury Streets, between Bowker Street and John F. Fitzgerald Surface Road. It’s one block from Boston City Hall and adjacent to the Rose Kennedy Greenway and Boston Public Market.