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CMA
July 19, 2019  

Loan Sought for Boston Office Project

A Boston Properties partnership is talking to lenders about $400 million of debt financing for the third phase of a big mixed-use complex along Causeway Street in Boston.

The floating-rate loan would back the construction of a 525,000-square-foot office tower at the Hub on Causeway development, which will encompass 1.5 million sf of office and retail space, 440 apartments and a 260-room hotel.

Boston Properties and its partner, Delaware North of Buffalo, are pitching the assignment to lenders directly, without a broker. The word is that BNY Mellon is in the running to lead the financing.

The project is next to the home arena of the Boston Celtics basketball team and the Boston Bruins ice hockey team. The first phase, some of which was completed in late 2018, encompasses retail and office space. The second phase consists of the hotel and apartments. That portion is slated to be finished this year. Leasing for the apartments is already under way.

The 31-story office tower is the final phase. Verizon has pre-leased 440,000 sf, or 84%, of the space. Its commitment significantly reduces the risk for a construction lender.