Boston Properties Suspends $980 Million Skyscraper
Bloomberg reports: Boston Properties Inc., the biggest US office landlord, plans to suspend construction on a $980 million midtown Manhattan skyscraper after a law firm abandoned plans to lease space there.
"Recently the law firm informed the company that it could not proceed on those terms, thereby rendering the project economically infeasible in today’s environment," the Boston-based company said today in a statement. The one million square-foot tower at 250 West 55th Street and Eighth Avenue was scheduled for completion in 2011.
Lending has also dried up as financial companies have taken more than $1 trillion of writedowns and credit-market losses. "It has more to do with the state of financial markets than the merits of individual projects," said Dan Fasulo, managing director at Real Capital Analytics. "Lenders don’t want additional exposure to commercial real estate at this point. There’s nothing we can do about it but wait this out."
A completed building on that site would have fetched
$1,500 per square foot during the peak of the real estate market
in 2007, Fasulo said. That would value the tower at $1.5
billion and made it one of the most expensive in the city.
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Posted by: Matthew Stone