HYM Takes Risk at NorthPoint?
The big question for developers in 2015 is whether to build spec offices. Such projects have scarce, but the stars may now be aligned for big bets. It's why we're excited to host Bisnow's Boston 2015 Forecast Dec. 17 at the Boston Sheraton, 7:30am to 10:30am. Register here.
Now's the time when some developers may consider starting a spec project, since most offices under construction, or recently completed, have been pre-leased, event panelist and HYM managing director Tom O’Brien tells us. Tom and partner Canyon Johnson may build a spec office at the $2B NorthPoint mixed-use complex they’re developing a stone’s throw from the hot Kendall Square submarket. HYM is also co-developing the $500M New Balance HQ, which yesterday had a ceremonial groundbreaking for a new Bruins practice facility. (The New Balance team actually started moving dirt 10 days ago.)
NorthPoint, permitted for 3M SF of residential and 2.2M SF of office and retail, is the site of HYM’s Twenty/20, a 355-unit apartment tower. It’s also likely to be where HYM will build a new office building since rents are hitting an unprecedented $80/SF. The question is whether to start with or without a tenant, Tom says. Demand is high, interest rates low and stable, and there's an influx of new investors—especially private equity—from the US and abroad.
Synergy Investments president Dave Greaney, also a panelist, says he will invest further capital in 10 Post Office Square, which the company purchased in October with Green Oak Capital for $143M. It’s a trophy office complex in a central location but could use an upgrade of its amenity package to take advantage of downtown’s rising rents, Dave tells us. Downtown has the most room for rent appreciation and therefore increasing asset values. In the coming year, Dave plans to keep focused on urban office and retail but it will be more difficult to find value because so much capital is shopping our market. Hear the latest and enjoy great networking at our Boston 2015 Forecast Dec. 17 at the Boston Sheraton, 7:30am to 10:30am. Register here.