You probably caught the news today that the developers behind the Filene’s Building project (nee, One Franklin) have hit a rough patch, a victim of the credit crunch, presumably.
From the Globe:
The $650 million redevelopment of the historic Filene’s building – which Mayor Thomas M. Menino envisions as the new center of downtown Boston – is struggling because the developers have been unable to raise financing.
An executive with knowledge of the project’s financing said developers John B. Hynes III and Vornado Realty Trust have been battling an extremely tight credit market since they won city approvals to undertake the massive project almost one year ago …
… Financial statements filed two weeks ago by the publicly-traded Vornado do not list the Filene’s project as among the developments for which the company has received funding so far this year.
This is the second (third, fourth) high-profile project to hit the skids, in Boston, following on the heels of the Columbus Center (and Kensington Place, etc.).
All eyes now turn to Seaport Square, the SBW-Seaport District project also proposed by Mr Hynes and Gale International, with financing arranged by Morgan Stanley. Is his goal the same, there? Go through the public review process, get all the necessary proposals, stick a shovel in the ground, then stop and wait for the credit (and housing, and commercial) markets to recover?
Source: Hole in the funding – By Casey Ross, The Boston Globe