The property, located between the Rose Fitzgerald Kennedy Greenway and Fort Point Channel, is likely among the most expensive waterfront assets acquired in recent years, David Begelfer, head of the local chapter of the National Association of Industrial and Office Properties, tells GlobeSt.com.
"Because of the existing structures and the density that is being put on the site, this is probably among the most expensive pieces of property on the waterfront. It might even be the most expensive piece of developable land in the city's history," he says.
Russia Wharf was acquired by the Blackstone Group last month as part of the $23-billion buy-out of Chicago-based Equity Office Properties Trust. It is the first local asset sold off by Blackstone. The site is permitted for a 500,000-sf office tower, 31,000 sf of retail space and 330,000-sf residential development. Those permits, Gregory Vasile , head of the Greater Boston Real Estate Board, tells GlobeSt.com, added value to an already hotly contested offering.
"It's prime real estate with a beautiful view of the ocean," he notes. "It's extremely unique because of where it is and what you look at. It's just a beautiful spot."
Vivien Li, executive director of the Boston Harbor Association, a nonprofit harbor advocacy group, tells GlobeSt.com that she expects Boston Properties to adhere to those permitting requirements and construct the already approved buildings on the site. Any change to those plans, she notes, will require the new owner to submit to an extensive review process by the city.
"I would assume, given the amount of money they put out, they will want to stay pretty close to what has been approved," she says.
Neither the New York City-based seller nor the buyer returned calls from GlobeSt.com by deadline. Officials from Jones Lang LaSalle's Boston office, who represented Blackstone in the deal, declined comment, citing a confidentiality agreement.
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