3 Challenges for Fenway Center
|Meredith Management prez John Rosenthal is gearing up to start construction by early '13 on his $450M Fenway Center project. A recent state court ruling cleared a legal obstacle, so we asked John to list the challenges that he and his team face in making the ambitious mixed-use plan a reality.|
|1) Securing financing— John says that urban mixed-use (he's planning to build rental apartments, office, retail, and parking) now requires 40% to 45% equity compared to the pre-?08 share of 30% to 35%.2) Assuring investors of higher yields— In exchange for the higher risk they run by putting more equity into a project, investors are asking for greater potential returns. In the case of Fenway Center, John tells us that the solid gold location next to Fenway Park and near the Longwood Medical Area provides more confidence.3) Building in air rights over the Mass Pike—Trying to build a deck over one of the region?s busiest highway s is tricky. Construction work can never interfere with traffic so there are special restraints on working hours and on space for staging. Also, building a deck in thin air calls for special techniques that can be costly, especially as construction prices rise.|
Hear more from John at Bisnow's Construction, Development and Tech RE event at the Boston Marriott Cambridge, April 14.Register here.