South Station Air Rights
Update
07/03/17
Ashkenazy acquiring 205,165-square-foot South Station leasehold for nearly $125 million
Ashkenazy Acquisition Corporation, who owns and operates Faneuil Hall, will acquire the 205,165-square-foot office and retail component of South Station, a central Boston transit hub poised for a nearly 2-million-square-foot air rights development, for nearly $125 million ($609.27 per square foot). Seller Equity Office Management listed the 98-year leasehold interest on South Station for sale through Holliday Fenoglio Fowler, L.P. (“HFF”) in April, expecting to fetch around $100 million ($407.81 per square foot). Ashkenazy and Equity’s deal will require approval from the Massachusetts Department of Transportation (MassDOT), owner of South Station, to move forward.
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. The asset benefits from unparalleled public transportation access and a prime location in the heart of Boston’s Financial District steps to Fort Point and the Seaport District. The first phase of the 1.981-million-square-foot South Station Air Rights development, 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.
