(For more retail coverage, click GlobeSt.com/RETAIL.)
BOSTON-Locally based Gale International and Vornado Realty Trust, of New York City, have finalized a $100-million acquisition of a four-building portfolio in Downtown Crossing, including Boston's historic Filene's building. The property was acquired from Federated Department Stores. The deal was first reported by GlobeSt.com in July.
The joint venture group plans to invest $600 million to turn the property into a 1.2-million-sf mixed-use development that will include a 38-story tower along with retail space, 600,000 sf of offices, luxury condominiums and a four-star, 250-room hotel.
Mack-Cali Realty Corp., a REIT based in Edison, NJ, and institutional investors advised by JPMorgan Asset Management-Real Estate, will co-venture with Gale in the investment. Construction on the project, set to begin in June, will prompt the temporary closing of Filene's Basement, the country's oldest off-price retailer which has been a fixture in Downtown Crossing's Filene's building since 1908, officials with Filene's say.
The store, which will remain open through the summer, is seeking alternative space in Downtown Crossing that will allow it to remain open for the two years it will take to make the renovations, as reported by GlobeSt.com.
"This substantial joint venture will serve to revitalize Downtown Crossing and address Boston's desire for the development of additional retail, hotel, office and residential space in the heart of the city," says John Hynes, president and CEO of Gale International, in a statement. Hynes, who was out of the country, could not be reached by GlobeSt.com for further comment and Vornado did not return calls.
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