HFF Arranges $115M in Financing for M-F Development in Boston
- Dec 30, 2013
The developers of One Greenway, a Class A multi-housing property that just broke ground along the southern end of the Rose Kennedy Greenway in Boston’s Chinatown, have received $114.7 million in financing, it was announced late last week by HFF, which arranged the financing. Those borrowers are Urban Strategy America Fund LP (an affiliate of New Boston Fund Inc.) and the Asian Community Development Corp., both of Boston.
The financing comprised a $104 million construction loan through PNC Bank, People’s United Bank, and Boston Private Bank & Trust and a $10.7 million equity investment from National Real Estate Advisors, Washington, D.C. The HFF team representing the borrower was led by senior managing director Riaz Cassum and director Porter Terry.
The first, and larger, portion of the project, the North building, comprises a 21-story tower with 217 market-rate rental units, a 10-story portion with 95 affordable-rate rental units, a 135-space below-grade parking garage, and about 3,300 square feet of retail and 5,000 square feet of community space. It’s scheduled for completion in summer 2015.
This first phase of One Greenway is valued at north of $150 million, Eric VanDusen, senior vice president-capital markets at New Boston Fund, told Commercial Property Executive. He added that the project’s second phase will consist of a six-story building with 50 units of affordable for-sale residential.
The 1.5-acre site, at Kneeland and Hudson streets, will also include a new one-third-acre public park. The site, which is being ground-leased from the Massachusetts Department of Transportation, was previously a staging area for Boston’s Big Dig project, the massive rerouting of I-93 into a 3.5-mile tunnel under central Boston, Cassum told CPE. In fact, the entire 1.5-mile Rose Kennedy Greenway consists of land freed up by the Big Dig.
Although the funding deal was difficult from a technical standpoint, Cassum told CPE, what with the ground lease and the number of capital sources, “there was plenty of interest on the part of lenders … Boston is a strong multi-family market.”