Quincy News: Developers cool to downtown Boston sites the state sees as hot properties

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Undeveloped development site
A Google Maps image
– News from elsewhere covered by Quincy Quarry News.

Developers cool to two state-owned downtown Boston sites the state sees as hot properties for redevelopment: two largely empty parcels on Kneeland Street near the train and bus stations.

After no offers after years of trying, state officials do not have any plans to market these sites.

Pushing against the tide?
Image via themerkle.com
Even a high-profile push two years ago by Governor Charlie Baker and Boston Mayor Marty Walsh to package the properties did not bear fruit.

By the time that bids were due last spring, no bids were submitted.

The biggest factor may have been the state’s minimum asking price: $167 million.

“The number they came out with was way too high,” said Michael Rubin, a real estate lawyer.

Not happening …
A danieldervartanian.com image
“The upfront money and the tentacles that came along with it made it much more expensive.”

“By the time you’re done as a developer, it’s not economically viable.”

State officials eventually waived the minimum bid, but developers and investors had already been scared away by then.

State officials eventually waived the minimum bid, but developers and investors had already been scared away by then.

Going once, going twice, gone to prison …
A FynnAuctions.com image
Still, some local real estate experts found it surprising that the state couldn’t work out a deal, given the parcels’ prime location.

Chris Froeb, another real estate lawyer , said developers realized they would have had a hard time turning a profit under the state’s conditions.

Froeb said the Kneeland Street parcels should become more attractive as the commercial real estate market continues to heat up.
Another site also not moving?
An Iconic Quincy Quarry file photo
But the good times may not last forever.

“I’m rooting for the site,” Froeb said. “The state is correct in (trying) to sell it.”

“The question is going to be: are they able to go back out to market soon enough with pricing that makes sense, or at least a process that allows folks to be diligent and creative … in this cycle?”