Caption: South Station Tower is being developed in Boston, Massachusetts situated atop of the South Station Complex at 650 Atlantic Avenue in the financial district of Boston, Massachusetts.
Source: Credit to Jones Lang LaSalle Incorporated & the Boston Planning & Development Agency (BPDA), South Station Air Rights Project.
| Project Name | South Station Air Rights Development Project |
|---|---|
| Location | Boston, Massachusetts |
| Project Sponsor / Borrower | Boston Planning and Development Agency, Hines, and the Massachusetts Bay Transportation Authority. |
| Program Areas |
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| Value Capture Techniques | Joint Development, Right-of-Way Use Agreements, Air Right Development |
| Mode | Intermodal - Transit/Multimodal Development |
| Description | The South Station Air Rights Project in Boston, Massachusetts, is a multi-phase and mixed-use development project will complete the South Station Transportation Center that features updated rail and bus terminals, office space, and residential space. The South Station is used by over 150,000 commuters daily, providing access to bus terminals and railways. The project collaborates between the Boston Planning and Development Agency, Hines, and the Massachusetts Bay Transportation Authority (MBTA). The project broke ground in January 2020 and is expected to be completed in June 2024 with a multi-phase approach. The project will increase the capacity of bus terminals by 50 percent while providing riders a more convenient, comfortable, and weather-protected intermodal connection when transferring from busses and parking to trains or subways. Currently, the South Station enhancements are also being made to wayfinding and safety for patrons with disabilities. Along with the upgrades, a new mixed-use tower will add 700,000 square feet of office space and 166 residential units. The updates in railyard infrastructure improvements enhance the safety of patrons while reducing the operating maintenance costs of MBTA. In addition, these improvements come with an additional recurring income to the MBTA through bus gate fees and retail revenue. The tower's construction and completion of the South Station Transportation Center and the construction of the South Station Tower is part of Phase 1 (January 2020 - June 2020). Phase 1 consists of a 51-story, 677-foot tall tower with residential and retail space. 175 residential condominiums will be located above 704,000 square-feet of office space and 7,000 square-feet of ground-floor retail. The Phase 1 also includes the creation of 530 parking spaces and the construction of the second phase of the South Station bus terminal. Two additional phases will follow: Phase 2 (July 2020 - June 2022) is approved as a residential and hotel building above the bus terminal expansion. Phase 2 will involve constructing a building comprised of residential and/or hotel units above the bus terminal expansion, covering an area of 440,000ft and including 368 parking spaces. The building will be 17-story, 334-foot tall and will include either a mix of hotel and residential space, 360 hotel rooms, 260 condominiums or 375 rental units. The Phase 3 (July 2022 - June 2024) development plan is 510,000 square feet of office and amenity space above the existing bus terminal. It will consist of a 9-story, 249-foot tall building with office space and 12,000 square-feet of ground-floor retail. The three buildings will be connected by a sky lobby serving as a passageway. The space will host public art and include amenities such as professional check-in services, public areas, and food and retail options. All phases will result in over 1,980,000 square feet of mixed-use space and 895 additional parking spaces. |
| Cost | $531,845,387.00 (Permit Value) |
| Funding Sources | Phase 1: $870 million loan with The Children's Investment Fund |
| Project Delivery / Contract Method | Design-Build |
| Private Partner | Hines and affiliates of Dune Real Estate Partners and AGP Groep NV. |
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| Lenders | JLL Capital Markets on behalf of a joint venture between affiliates of Hines, APG Groep NV and Dune Real Estate Partners LP secured the loan with the Children’s Investment Fund, an $870 million construction loan for the first phase of the South Station redevelopment. |
| Duration / Status | January 2020 - June 2024
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| Financial Status / Financial Performance | Phase 1 is funded by an $870 million loan acquired by Hines and affiliates of Dune Real Estate Partners and AGP Groep NV in January 2020. |
| Innovations |
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| Related Links / Articles |
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| Contacts | Tim Czerwienski |
Caption: South Station Tower (the tallest building) will be situated atop of the South Station Complex
Source: Credit to the Boston Planning & Development Agency (BPDA), South Station Air Rights Project
Caption: The view of the expansion of the expanded outdoor concourse area of the South Station Air Rights project.
Source: Credit to the Boston Planning & Development Agency (BPDA), South Station Air Rights Project
Caption: The image of patrons traffic at the new bus terminal. The South Station Air Right Development new bus terminal will increase capacity by more than 50% and will provide more convenient connections to train and subway.
Source: Source: Credit to the Boston Planning & Development Agency (BPDA), South Station Air Rights Project
Caption: A view from west of the expanded bus terminal track 13 construction work zone and the two cranes use to install the steel structure across the east side of the rail yard.
Source: Credit to the South Station Air Rights
