South Station Air Rights
Update
08/25/17
Ashkenazy acquires South Station office and retail leasehold for $119 million
Ashkenazy Acquisition Corporation, owner of the ground leases of Boston's Faneuil Hall and Washington DC's Union Station, has acquired the 98-year leasehold interest on the 205,165-square-foot office and retail component of Boston's South Station from longtime owner Equity Office Management for $119 million. The sale amounts to approximately $580 per square foot; Citi Real Estate Funding provided $75 million in funding towards Ashkenazy's acquisition. Equity listed the leasehold for sale through Holliday Fenoglio Fowler, L.P. (“HFF”) in April, expecting to fetch around $100 million ($407.81 per square foot).
South Station’s office and retail component features 117,000 square feet of fully-leased office space across four stories and 59,000 square feet of ground-floor restaurant and retail space with multiple tenants, including restaurants Au Bon Pain, Auntie Anne’s, Dunkin’ Donuts, McDonald’s, Pret A Manger and Starbucks, and retailers Bank of America, Barbara’s Bookstores, Citizens Bank and CVS/pharmacy. South Station features unparalleled public transportation access and a prime location in the heart of Boston’s Financial District steps to Fort Point and the Seaport District.
South Station is poised for a nearly 2-million-square-foot air rights development, which will be developed by Hines and Gemdale Properties. The development's first phase, a 51-story, 677-foot tall, 1.032-million-square-foot tower featuring 175 condominium residences, 704,000 square feet of office space and 7,000 square feet of ground-floor retail, is expected to break ground by the end of this year.