The Virginia-based development company already owns the nearby Prudential Center apartments. The company would be buying the rights from local developer Steve Samuels, who had originally proposed building a hotel on the site when he bought it two years ago from Harvard Pilgrim Health Care.
The difficulty he had financing that project, despite neighborhood support, convinced him to switch to a residential structure. In contrast, the proposed 44,000-seat ballpark, which was being decided around the time Samuels bought this property, has been hotly contested here.
The deal that is reportedly being considered would allow Samuels to keep control over retail and parking at the base of the building. Avalon would own the right to build a 500-unit apartment building.
"Avalon Bay is a top developer and builds quality products," Walter Mercer, senior vice president at Spaulding Slye Collier's Structured Finance Group. "There's no reason why this wouldn't be successful."
The presence of a ballpark right next to this site has not deterred a number of developers from wanting to build here. The city's sites do not allow for the development of many large apartment buildings and, as Mercer points out, vacancy rates are currently at 1%. "The apartment market has the right demand now," he says.
Mercer believes that a residential structure in this area, which is also next to the new Landmark Center, can unify the neighborhood, which is split up by the Massachusetts Turnpike. "It can unite Kendall Square and the Fenway area. It's a real opportunity to tie the whole area together," he notes. "And it's a great area to put in residential units and retail--the MBTA is nearby and it has shopping."
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