Fan Pier, a 21-acre waterfront site in South Boston, was recently purchased and is now slated for mixed-use development.
On Sept. 29, 2005, the largest private real estate investment in Boston was officially finalized. In a partnership with Massachusetts Mutual Life Insurance Co. and Cornerstone Real Estate Advisors LLC, a subsidiary of MassMutual, The Fallon Co. purchased Fan Pier, a 21-acre (three-million-square-foot) waterfront parcel from the Chicago-based Pritzker family, owners of the Hyatt Hotel chain. The area, which has been vacant for nearly three decades, is located in the South Boston Waterfront District adjacent to the Federal Court House and is set to revitalize the entire waterfront area.
Joseph F. Fallon, president of The Fallon Co., and Cornerstone Real Estate Advisors LLC, negotiated the purchase on behalf of the partnership. Anglo Irish Bank, a business bank concentrating on commercial real estate banking, provided the initial financing for this project through its North American headquarters in Boston and CB Richard Ellis has been appointed as the broker for Fan Pier’s commercial space.
Fan Pier is slated to represent a spectacular achievement of modern urban planning for Boston’s centerpiece waterfront site along the harbor. Twenty-one acres, representing nine city blocks, will be developed into a vibrant, pedestrian-friendly neighborhood along the waterfront. Large infrastructure contributions will transform this area into the city’s hottest neighborhood and serve as a link between Boston’s Financial District and the seaport area by the World Trade Center. As a compliment to these developments, Fan Pier will be designed to reflect a range of building types and architectural expressions. This notable project will also provide unprecedented opportunities for the public to experience and enjoy Boston Harbor. Two national design competitions are currently underway to select architectural firms to design two key components of the project – a 500,000-square-foot office tower, as well as a luxury, high-rise condominium building. Architectural finalists are expected to be announced later this month. Elkus Manfredi Architects has been selected to design more than 150,000 square feet of retail space including planned restaurants and cafes at Fan Pier.
The master plan for this renowned landmark includes three million square feet of development including a luxury hotel, more than one million square feet of residential condominiums, one million square feet of first-class office space, street-level retail, restaurants, cafes and galleries, underground parking for 2,200 vehicles, public parks, the new Institute of Contemporary Art with a performing arts hall, a protected cove with public marina, fishing pier and water transportation facilities that will provide unprecedented access to the Boston Harbor Islands. The public space will also extend the city’s popular HarborWalk along the water’s edge at Fan Pier.
Strategically located with the dramatic skyline of the Financial District as a backdrop, Fan Pier enjoys unsurpassed access from the Ted Williams Tunnel and the MBTA’s new Silver Line to Logan Airport, the Massachusetts Turnpike, Interstate 93 and all surrounding suburbs. Its highly visible location establishes it as one of the most prominent development sites in the country.
According to the recently re-elected Mayor Thomas M. Menino, “This is great news for the city of Boston. The South Boston waterfront is fast becoming a vibrant, 24-hour neighborhood thanks to the efforts of developers like Joe Fallon. This partnership is evidence of Boston’s solid economy and the important vision that many of our business and civic leaders share for the ‘new’ waterfront.”
Each party involved has been an active investor and developer in the South Boston waterfront. MassMutual, a Fortune 100 Co., with more than $350 billion of assets under management, has significant investments in the Boston area including financing of the Seaport Hotel, adjacent to the World Trade Center in South Boston. Cornerstone and The Fallon Co. are partners in the development of Park Lane Seaport, a recently-opened, 465-unit luxury high rise apartment complex. The Westin Boston Waterfront Hotel, a luxury 800-room hotel connected to the new Boston Convention & Exhibition Center, is slated to open in the summer of 2006 and is a joint venture development being managed by the Fallon Co.
With its U.S. representative office based in Boston since 1998 (its international headquarters are in Dublin, Ireland), Anglo Irish Bank is playing a key role in investing in Boston’s future. According to Tony Campbell, Anglo Irish Bank’s president and CEO for North America, “The scope of the Fan Pier development, along with the quality and successful track record of the partners involved, were the key factors in our decision to financially support this deal.”
