Dealmaker: JLL Arranges $870M Construction Loan for Boston Redevelopment
JLL Capital Markets, Chicago, arranged an $870 million construction loan for the first phase of Boston’s South Station redevelopment.
The project’s first phase is a 1.2-million-square-foot, 51-story mixed-use tower to be built at Boston’s busiest transportation hub. The South Station redevelopment is a 1.9-million-square-foot mixed-use project that will change Boston’s skyline.
JLL represented a joint venture among Hines, APG Groep NV and Dune Real Estate Partners LP and placed the loan with The Children’s Investment Fund, London.
Anticipated for 2024 delivery, the project’s first phase will include 660,000 rentable square feet of Class A office and retail space and 166 residential condominium units. The office component will have 26,000-square-foot, mostly column-free floor plates with 13-foot floor-to-ceiling heights and unobstructed views of downtown Boston and Boston Harbor. The residential component will offer studio, one-, two- and three-bedroom units and penthouse duplex units.
Located between Boston’s central business district and the city’s rapidly growing Seaport District, the property has access to Logan International Airport as well as Interstate 93 and the Massachusetts Turnpike. The tower is directly above South Station, which serves more than 130,000 commuters daily with train, bus and subway transportation modes.
JLL Senior Managing Director Riaz Cassum and Senior Director Jennifer Keller led the capital markets team. “Developments of this quality and magnitude arise infrequently in a mature market such as Boston,” said Cassum.
JLL also closed Coral Sky Plaza a 232,700-square-foot retail center in Royal Palm Beach, Fla. the firm marketed the property for sale and arranged $26.1 million in 10-year fixed-rate funds form Morgan Stanley Bank N.A., New York.
Anchored by a BJ’s Wholesale Club, the 95.6 percent leased Coral Sky Plaza also houses Ross Dress for Less, Bed Bath & Beyond and Famous Footwear. It occupies nearly 25 acres on State Road 7, where 126,000 vehicles per day pass by.
The JLL retail team that represented the seller included Senior Managing Director and Co-Head of JLL’s Retail Practice Danny Finkle, Managing Director Luis Castillo and Director Eric Williams. The debt placement team that represented the new owner was led by Senior Managing Director Chris Drew, Directors Maxx Carney and Jesse Wright and Associate Reid Carleton.
“The combination of exceptional tenant performance, strong market fundamentals and a high-quality borrower resulted in an aggressive showing from the debt capital markets for the opportunity to finance Coral Sky Plaza,” Drew said.