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W E E K O F M O N D A Y , M AY 8 , 2 0 1 7
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A Publication of The Warren Group COMMERCIAL INTERESTS
The Worst Possible Time
MISSING LINK
A FAST TRACK TO ALLSTON
Projects Now Breaking Ground Face Labor, Material Shortages
Developers Focus On Allston Multifamily Potential
BY SCOTT VAN VOORHIS BANKER & TRADESMAN COLUMNIST
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here’s a big reason why public construction projects so often wind up blowing budgets, and it’s one that is so obvious it’s amazing it never really gets debated: Really bad timing. Everyone has their own pet theory about what has caused the huge construction pileup at UMass Boston that has blown a $30 million hole in the finances of the city’s only public research university, from a ban on bids by non-union contractors to mismanagement at the top. But putting all that aside, one thing stands out: After a decade of planning, fundraising and construction of other new buildings, UMass Boston is just now gearing up to replace its crumbling underground garage, a project that has the potential to be the school’s own mini-Big Dig. Timing may not be everything in life, but it is often crucial, and nowhere as much as Continued on Page 3
BY STEVE ADAMS | BANKER & TRADESMAN STAFF
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DELAYED DEVELOPMENTS
Late Condo Delivery Plagues Greater Boston Building Boom A Bust For On-Time Closings
Developers are marketing office and lab space above the new Boston Bruins and Celtics’ training facilities at Boston Landing.
lobal Atlantic Financial Group’s decision to pull up stakes in Southborough and relocate 154 employees to Boston Landing late this year is the latest validation of New Balance’s strategy to grow in place in Allston. The sporting goods manufacturer has filled all 228,000 square feet of office space it left behind at 20 Guest St. in 2015 when it moved to its eye-catching new headquarters overlooking the Massachusetts Turnpike. As it continues buildout of its 1.8-million-square-foot Boston Landing mixed-use development, New Balance paid for the first privately-funded MBTA commuter rail station, which is scheduled to open May 22 at the edge of the 15-acre property. That restores a rail connection missing in the neighborhood since deactivation of the Green Line’s A branch in 1969. “The train station was a big factor in (Global Atlantic’s) decision,” said Jim Halliday, managing director of New Balance’s real estate arm NB Development. “People think of it bringing people into the city, but we also looked at it as an important way to get access to the urban labor pool that a lot of companies are looking for.” Halliday declined to give the latest cost estimate for the station, originally scheduled to open in 2014 with a projected cost of $20 million. Insurance and retirement fund manager Global Atlantic is the latest employer to leave behind a single-use suburban office park for a city development with apartments, restaurants and public transit connections. Continued on Page 9
BY JIM MORRISON BANKER & TRADESMAN STAFF
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s Greater Boston’s building boom continues unabated, there are bound to be delays in construction and delivery of the thousands of new condominiums expected to come online this year. Delays are an unfortunate part of the construction business, especially when building or renovating in an urban city with snowy winters. But for buyers, construction delays mean closing dates become moving targets, which can result in unanticipated expenses and logistical living challenges; for attorneys and brokers, delays can result in unhappy clients. “I tell my clients to go into this expecting everything that can go wrong, will go wrong,” said attorney Kosta Ligris, CEO and managing partner of Boston-based Ligris and Assoc. “You need a backup plan and a drop-dead date.” Continued on Page 8
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In Person ������������������������������������������������������������������ 7
Banking & Lending ������������������������������������������������� 10
Points ����������������������������������������������������������������������� 4
Residential ��������������������������������������������������������������� 8
Classified Sections ������������������������������������������������� 13
By The Numbers ������������������������������������������������������� 6
Commercial & Industrial ������������������������������������������ 9
Records Section ������������������������������������������������������ B1