Big, bold real estate developments keeping Greater Boston competitive
Writer: Andrea Teran
July 2024 — Boston’s evolving real estate landscape is seeing a notable shift as major projects move away from downtown to areas like Dorchester, Allston, Charlestown, and South Boston, poised to drive significant change against a backdrop of economic headwinds.
“Boston continues to show strong demand for all property types, making it a great place to invest in, own property, and, if fortunate enough, develop. Making your mark in a city with such a rich history and world-class status is an incredible opportunity,” Michelle Landers, executive director of ULI in Boston and New England told Invest:.
The Dorchester Bay City project is another project with a monumental scope. The development spans nearly 6 million feet and is set to transform the former Bayside Expo Center site and neighboring properties with 21 new buildings, including residential, commercial, and retail spaces. Importantly, stakeholders say Dorchester Bay City will revitalize the area and enhance its connectivity to the rest of the city. The project’s significant public benefits include nearly 20 acres of publicly accessible open space, a new 2.7-acre park, and a 6,300-square-foot public pavilion. Additionally, it will offer 20% on-site affordable housing, contributing to workforce training and economic opportunity programs. Project updates emphasize creating expansive waterfront-adjacent public spaces, improving existing transportation infrastructure, and increasing economic opportunities for all. The updated plans aim to replace car-centric sites with pedestrian and bike-friendly areas, enhancing circulation and connectivity to Boston, Dorchester, UMass Boston, and the Boston Harbor.
In Allston, Harvard University’s Enterprise Research Campus (ERC) is another major development, activating a long-underutilized area. The first phase, covering nearly 900,000 square feet, includes lab buildings, residential units, a hotel, and a conference center. This mixed-use development aims to integrate academic, commercial, and residential functions, fostering innovation and community engagement in the neighborhood. The ERC is projected to create 4,300 total jobs, including 2,000 union construction jobs and 2,300 permanent jobs in life sciences, hospitality, retail, and operations industries. Additionally, the project will offer 343 residential units, with 25% designated as affordable housing.
Charlestown’s 425 Medford project will reimagine the Mystic River waterfront with six new buildings encompassing 1.8 million square feet for office, lab, residential, hotel, and retail use. This development will rejuvenate a historically industrial area, making it a modern, mixed-use neighborhood. The project also includes the construction of a 22-foot-high resilient flood barrier designed to 2070 standards, addressing existing and future site flooding from predicted sea-level rise and climate change. This barrier, which will serve as a public amenity, will include a harbor walk extension, recreational and park areas, a public dock, boat launch, kayak launch, and several public lookout points. John Roche, CEO of Flatley Co. Developers emphasized the importance of the project: “We have a unique opportunity to make a flood barrier into a public amenity for the city and bring the people of Boston to a significant waterfront site that much of the public has most likely never stepped foot on.”
The redevelopment of Suffolk Downs stands as one of the largest and most ambitious projects in Boston’s development pipeline. Spanning the border of East Boston and Revere, the former racetrack will be transformed over the next decade-plus into 16 million square feet of mixed-use space. The project will include 10,000 housing units, offices, hotels, and various amenities across 161 acres. The first building, a residential structure named Amaya, was completed in June with 475 units available for pre-leasing. With an expected completion timeline of 15 years, Suffolk Downs is set to significantly impact the regional economy and housing market.
However, this ambitious project is facing significant delays due to economic challenges. Despite the initial progress, housing construction at Suffolk Downs is currently on hold while other day-to-day operations are ongoing. The primary issues include high interest rates and soaring materials costs, which have made financing these large-scale developments increasingly difficult. “The whole dynamic of housing finance has shifted. It has become so much harder to make these projects work,” Tom O’Brien, managing director of The HYM Investment Group told the Boston Globe. With materials costs up 43% since 2020 and construction loan interest rates more than tripling, the financial feasibility of continuing development has been severely impacted.
“With an investment approximately $600 million to date, the Suffolk Downs redevelopment is well underway. HYM continues to work on key infrastructure and commercial pieces across the 161-acre site and explore creative and collaborative solutions with the State and our partners to break ground on the next units of much needed housing,” an HYM Investment Group spokesperson told Invest:.
South Boston’s 776 Summer project is set to redevelop the former Edison power plant site into 1.7 million square feet of office space. This project, along with other significant developments in the area, highlights South Boston’s continued appeal and potential for growth despite broader economic challenges. The project timeline includes the restoration of Turbine Halls 1-3 with retail and civic/cultural spaces, surrounding road enhancements, and seawall reconstruction. The first vertical phase, including Blocks D and F for R&D/lab use, is set to be completed by Summer 2025.
The Seaport District also continues to attract major investments. Notably, Fallon Co. secured a $215 million loan for a new 14-story, 130-unit residential tower at Fan Pier, adding to a cluster of buildings that have transformed the neighborhood. The new tower will be one of the final waterfront properties in the Seaport, underscoring the area’s desirability and ongoing development momentum.
For more information, please visit:
https://www.baysideupdate.com/
https://www.falloncompany.com/
UPDATE [Thursday July 25 11:02 a.m. EST]: This article has been updated to include a response from the HYM Investment Group team regarding the current status of work at Suffolk Downs. This update also reflects that while housing construction is currently paused, day-to-day operations for the project are still ongoing.
