Verizon Signs Major Lease Deal at Hub at Causeway Project

BOSTON—Boston Properties and partner Delaware North report that an affiliate of Verizon Communications, Inc. has signed a long-term lease for 440,000 square feet of space that brings The Hub on Causeway project being built on the site of the former Boston Garden to more than 75% leased.

Under the agreement with an affiliate of Verizon, the telecommunications firm will lease approximately 70% of the planned 627,000-squar- foot Class A office tower at 100 Causeway St. for a 20-year term. Verizon was represented in its lease by the Cushman & Wakefield brokerage team led by Josh Kuriloff in New York and John J. Boyle III in Boston.

The Hub on Causeway is a joint-venture transit-oriented development of Delaware North and Boston Properties and will consist of more than 1.5 million square feet of mixed-use retail, office, hotel, and residential space, as well as an expansion of TD Garden.

The Hub on Causeway is being constructed in three phases. Completion of phase one, which includes TD Garden’s grand entrance, new entry for North Station and additional commuter conveniences, is set for October 2018. The retail, office space and amenities located within The Hub are planned to open in late 2019. Phase two, which includes a hotel and residential spaces, will be completed in late 2019. Verizon’s lease kicks off the final phase, featuring a 31-story office tower, the tallest in Boston in more than two decades, which will be completed in mid-2021.

“Since Rapid7’s commitment to lease 147,500 square feet of loft office space last year, we have seen tremendous interest in all that The Hub has to offer, including experiential amenities unmatched in the city of Boston,” says Bryan Koop, EVP, Boston region, for Boston Properties. “City of Boston leadership under Mayor Marty Walsh has been instrumental in all aspects of the project, ensuring The Hub will connect the West End and North End neighborhoods, as well as act as a dramatic presence on the skyline at the northern gateway to the city.”

“The Hub on Causeway will soon be the new gateway to Boston, and the transformation of this neighborhood will be second to none,” says Charlie Jacobs, CEO of Delaware North’s Boston Holdings. “We are delighted to have Verizon join our already outstanding group of tenants at The Hub on Causeway. Verizon will now have access to some of Boston’s most desirable tech-focused office space and all of the incredible experiences that The Hub on Causeway will have to offer.”

In addition to the recent leasing milestone at the project, Boston’s first citizenM hotel topped off its structure at The Hub on Causeway earlier this month. This 269-room hotel will be located in an eight-story tower atop the west podium and is planned to open in fall 2019.

Boston Properties manages all development aspects of the project. The project is being constructed by John Moriarty & Associates. The architect for the commercial spaces is Gensler, with Stantec as the architect of record for the office tower. The architect for the residential building is Solomon Cordwell Buenz. The architect for the TD Garden expansion is SCI Architects. Delaware North is owner and operator of TD Garden.

Boston Properties in its second quarter financial announcement released on Tuesday, reported it entered into a joint venture with its partner at The Hub on Causeway on July 27 to acquire the air rights for the development of the office tower at 100 Causeway St. With the execution of the Verizon lease, the joint venture commenced development of the project. Boston Properties will serve as co-development manager for the project and will own a 50% interest in the joint venture. The company’s share of the total project cost is estimated to be approximately $270 million.

In its second quarter announcement, Boston Properties also noted its joint venture with the Moinian Group to develop the 2-million-square-foot 3 Hudson Blvd. office tower in New York City.