{"id":271,"date":"2019-02-28T10:24:21","date_gmt":"2019-02-28T15:24:21","guid":{"rendered":"http:\/\/site.alliedbolt.com\/blog\/?p=271"},"modified":"2019-02-28T10:26:32","modified_gmt":"2019-02-28T15:26:32","slug":"boston-construction-news-high-profile-projects-move-forward-as-boston-says-it-will-evade-downturn","status":"publish","type":"post","link":"http:\/\/site.alliedbolt.com\/blog\/boston-construction-news-high-profile-projects-move-forward-as-boston-says-it-will-evade-downturn\/","title":{"rendered":"Boston Construction News: High-Profile Projects Move Forward As Boston Says It Will Evade Downturn"},"content":{"rendered":"<p><em>Reprinted from <a href=\"https:\/\/www.bisnow.com\/boston\/news\/construction-development\/boston-developers-optimistic-in-face-of-market-correction-and-even-see-some-benefit-96609\" target=\"_blank\" rel=\"noopener\">Bisnow<\/a><\/em><\/p>\n<p>Boston developers continue to enjoy a building boom in New England\u2019s largest city, but some wouldn\u2019t mind a downturn to help with the region\u2019s notoriously high building costs.<\/p>\n<p>\u201cThe biggest help to bringing down costs will be a market correction,\u201d Gerding Edlen Director Matt Edlen said. \u201cThere are many out there who can\u2019t wait for that to happen. It\u2019s a weird thing for a developer to say.\u201d Owning a home in Boston isn&#8217;t cheap, and developers have stressed that comes from high building costs. A typical one-bedroom unit in Boston costs developers roughly $450K to build, and that translates into higher rents for residents. \u201cThe cost burden requires you to underwrite a staggeringly high rent,\u201d said Edlen, who is speaking at Bisnow\u2019s Boston Construction &amp; Development event Jan. 24. \u201cIt\u2019s hard for really anyone to underwrite anything that is a little more market-friendly.\u201d While a market correction would play a significant role in bringing construction costs down, other factors will also help. Negotiations with building trades, prefabricated building materials and political pushes for more units of housing are among the alternative solutions Edlen said will play a part in making Boston more affordable to live and develop. Gerding Edlen is behind Boston multifamily projects like The Troy in the South End and The Eddy on the East Boston waterfront. Its latest project, the Fenway Center, is its most ambitious: Its second phase calls for decking over the Massachusetts Turnpike near Fenway Park and erecting a 27-story mixed-use tower over the busy highway in the project\u2019s second phase. The $240M first phase currently under construction is slated to deliver 312 apartments, 37K SF of retail and a 12K SF air rights deck over Yawkey Station sometime in 2020.<\/p>\n<p>There are several air rights proposals currently floating over the Mass. Pike, but the last air rights project that was successfully completed was Copley Place in the 1970s. The financing and logistical burden has left many projects on the drawing room floor. Decking over rail yards and industrial space in Widett Circle, once touted as the future home of a Boston Olympic stadium, was estimated to cost $1B. Gerding Edlen, which is developing the Fenway Center in a partnership with Meredith Management and TH Real Estate, is working with Massachusetts officials and the Massachusetts Department of Transportation to figure out a model for all air rights projects and how to share the cost burden on decking. \u201cWhat we have done is not look at this as a one-off deal,\u201d Edlen said. \u201cHow do we simplify the process so when you get to the real heart of deals like this, we\u2019re all on the same page?\u201d While a downturn would help with building costs, Edlen and other local developers don\u2019t expect Boston to feel much pain in the market correction many economists expect sometime soon. Cranes dot the sky from the Seaport to the South End and over to Cambridge. HYM Investment Group is on track to deliver the 423-unit residential tower at Bulfinch Crossing in Government Center in 18 months, according to HYM Vice President John Hurley. The developer, with partners National Real Estate Advisors and Carr Properties, will also begin the 1M SF One Congress office tower at Bulfinch Crossing this summer.<\/p>\n<p>While Hurley said a market correction could bring some construction headwinds, Boston\u2019s diverse economy keeps HYM bullish on its hometown. \u201cBoston benefits from great market conditions (stronger, by comparison, than national averages in almost all respects), and investors and developers who have a longer-term outlook on Boston may not be deterred by any sort of market correction and move their projects ahead,\u201d Hurley said in an email to Bisnow. Cottonwood Group is also banking on a strong Boston economy. The first condo tower at the developer\u2019s $950M EchelonSeaport project is scheduled to open in October while the second condo tower will deliver later in 2019. Both condo towers will be branded by Taiwan-based Regent Hotel Group. A third tower, a luxury rental development, is scheduled to open in 2020. \u201cIt&#8217;s a very exciting time for us on Seaport Boulevard,\u201d Cottonwood Group Project Executive and Head of East Coast Development Rebecca Mattson said. While EchelonSeaport might arrive about when some economists predict a market correction, Mattson said the higher education and healthcare foundations to Boston\u2019s economy makes it less boom-and-bust than other parts of the country. She also said the city\u2019s tough permitting and construction process also keeps a limit on supply. That will be good news to developers hoping to get a project off the ground in the next few years. \u201cWith housing, which is undersupplied, and certain markets screaming for inventory, such as Kendall Square, it\u2019ll take us a while to satiate that demand even in the face of a national softening,\u201d Mattson said. \u201cAs a result, many of these projects on deck for 2019 to 2020 should cross the finish line \u2014 or cross the starting line, which is often the harder of the two.\u201d<\/p>\n<hr \/>\n<h2>About Allied Bolt &amp; Screw<\/h2>\n<h2>Since 1961 we have been the top provider of Hot Galvanized Anchor Bolts, Rods, Studs, Nuts, Washers, Screws, Fasteners and 1000s of products. Allied Bolt &amp; Screw can fulfill any building and manufacturing need. <a href=\"http:\/\/www.alliedbolt.com\/contact.html\">Contact Us<\/a> for more information.<\/h2>\n<hr \/>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Boston developers continue to enjoy a building boom in New England\u2019s largest city, but some wouldn\u2019t mind a downturn to help with the region\u2019s notoriously high building 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