JLL arranges $870M loan for South Station redevelopment
Core mixed-use tower to be built at Boston’s busiest transportation hub
BOSTON, January 24, 2020 – JLL Capital Markets announced today that it has arranged an $870 million construction loan for the first phase of the South Station redevelopment, which comprises a 1.2 million-square-foot, 51-story mixed-use tower that will be built at Boston’s South Station transportation hub. The South Station redevelopment is a world-class, 1.9 million-square-foot mixed-use project that will transform Boston’s transportation hub and skyline.
JLL worked on behalf of a joint venture between affiliates of Hines, APG Groep NV and Dune Real Estate Partners LP, to secure the loan with The Children’s Investment Fund.
Anticipated for delivery in 2024, the first phase of the project will offer approximately 660,000 rentable square feet of Class AA office and retail space as well as approximately 166 residential condominium units and more than 500 parking spaces. The faceted oval glass tower was designed by Pelli Clark Pelli Architects and will be constructed to align with the historic South Station façade and meet LEED® Gold standards.
The office component will feature 26,000-square-foot, primarily column-free floor plates with 13’ floor-to-ceiling heights and unobstructed views of downtown Boston and Boston Harbor. The residential component of the tower will offer studio, one-, two- and three-bedroom units along with penthouse duplex units. The residences will feature the finest finishes and will be accessed through a private lobby with doorman/door staff. Tenants and residents will be provided with market-leading amenities such as an urban sky park with outdoor space; an office sky lobby and residential sky lobby; conference center; fitness center; landscaped terrace with outdoor pool and cooking and entertaining space for resident use and an on-site restaurant.
Strategically located at the nexus between Boston’s Central Business District and the rapidly growing Seaport District, the property has convenient access to Logan International Airport as well as the area’s primary highways, including Interstate 93 and the Massachusetts Turnpike. The tower is positioned directly above South Station, Boston’s transportation hub, which serves more than 130,000 commuters daily and offers direct access to multiple modes of transportation like trains, buses and the subway.
The JLL Capital Markets team representing the borrower was led by Senior Managing Director Riaz Cassum and Senior Director Jennifer Keller.
“Developments of this quality and magnitude arise infrequently in a mature market such as Boston,” Cassum said. “The tower at South Station has an irreplaceable, transit-oriented location above one of our city’s busiest transportation hubs and will offer best-in-class office and residential space for discerning tenants and residents.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 219 cities in 23 countries. Hines has approximately $124.3 billion of assets under management, including $63.8 billion for which Hines provides fiduciary investment management services, and $60.5 billion for which Hines provides third-party property-level services. The firm has 148 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,362 properties, totaling over 449 million square feet. The firm’s current property and asset management portfolio includes 514 properties, representing over 222 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most respected real estate organizations in the world. Visit hines.com for more information.
APG is the largest pension delivery organization in the Netherlands; its approximately 3,000 employees provide executive consultancy, asset management, pension administration, pension communication and employer services. APG performs these services on behalf of pension funds and employers in the sectors of education, government, construction, cleaning and window cleaning, housing associations, energy and utility companies, sheltered employment organizations, and medical specialists. APG manages approximately €532 billion (November 2019) in pension assets for the pension funds in these sectors. APG works for approximately 21,000 employers, providing the pension for one in five families in the Netherlands (about 4.6 million participants). APG has offices in Heerlen, Amsterdam, Brussels, New York, and Hong Kong. For more information visit apg.nl/eng.
About Dune Real Estate Partners LP
Dune Real Estate Partners LP is a New York City-based real estate investment firm currently executing a strategy focused on distressed, deep value-add and contrarian investing, primarily in the United States. The firm's sole focus is on assembling and managing a diversified portfolio of real estate investments, balanced by region, sector and risk profile. Dune manages the Dune Real Estate Funds, which were launched by Mr. Daniel M. Neidich in 2005 and have raised $3.6 billion of equity capital.