Scoop from the Globe’s Kimberly Blanton, this morning.
Builders of a $275 million residential and retail complex on East Boston’s waterfront unexpectedly delayed construction last month, a setback to a project critical to the neighborhood’s economic future.
Roseland Property Co. and Lennar Corp. stopped work on Portside at Pier One because of cost increases and softness in local real estate, according to Massachusetts Port Authority, which owns the property.
Not sure what this means, although I think it’s more significant than the developer is letting on (of course).
This not a small project – if you look at some of the marketing brochures put out by Coldwell Banker, who was doing the sales and marketing, you will see that the entire development will someday be spread across as many as seven buildings, on multiple acres of land.
I’m not sure how something like this ends up being played out. I wouldn’t expect a complete cancellation of the project – more a slowdown. I would assume someone(s) would be asked for more concessions, etc., in order ot make the project more economically feasible. Meaning, the Port Authority, which owns the land under much of the project.
(The question remains, will buyers be willing to invest in properties built on leased land? This isn’t a common occurrence in Massachusetts. I know I’d be afraid to buy, and I’m not sure how banks feel about the idea.)
(I don’t know what the developer is going to do about the pricing issue. The units are priced extraordinarily high for the area, as if you would be living in Back Bay. Will buyers be willing to pay top-dollar just for the views of downtown Boston?)
Complete story: E. Boston waterfront project stalls – By Kimberly Blanton, The Boston Globe