In a move that could help further bolster Boston’s Charlestown neighborhood as a business address, Nordic Properties is planning a multimillion dollar expansion of the Hood Business Park, a 20-acre parcel which already has been repositioned as an office/research complex.
The former Hood Dairy, currently sporting 400,000 square feet of space, would be enlarged by more than 800,000 square feet under the proposal. Along with renovation and expansion of several existing buildings, Nordic and its development partner, Catamount Management, would add three new buildings and three parking garages to the parcel. At full build-out, a total of nine structures totaling nearly 1.2 million square feet would occupy the site, according to documents obtained last week from the Boston Redevelopment Authority.
Nordic principals did not return phone calls by Banker & Tradesman’s press deadline, but BRA spokeswoman Susan Elsbree said the developers have been meeting for some time with the planning agency. “They’ve been great to work with,” said Elsbree, who praised Nordic for shaping its master plan around long-term changes to the area anticipated as part of the Big Dig project.
Nordic does not provide any cost figures in its BRA filings, but the firm does estimate that the expansion would mean $4.2 million in linkage payments to the city, 1,000 construction jobs and upwards of 3,000 permanent positions.
According to the filing, more than 150,000 square feet would come from renovating and expanding existing buildings at 480, 510 and 570 Rutherford Ave., while a similar effort at 500 Rutherford Ave. would yield another 200,000 square feet. New construction is slated to include a pair of 218,000-square-foot buildings and accompanying structured parking for 1,230 vehicles. The developers would add a third building of 102,000 square feet as well, plus a 408-vehicle parking garage.
Boston real estate broker Karyn McFarland said she believes added parking will be a critical element for the future success of Hood Business Park, noting that public transportation options are limited. Despite those limitations to date, McFarland said she is impressed with the activity at the property, which had served as Hood’s headquarters plant until 1996. Rents are in the $30 range, McFarland said, with top tenants featuring HarvardNet, an Internet company that uses the space for telecommunications purposes. Other tenants include Teligent, Air Express International and the Design Partnership of Cambridge.
McFarland said she believes Nordic and its joint venture partners are poised to take advantage of the region’s super-tight office market, one which has seen downtown Boston rents soaring into the $60 per-square-foot range. Fringe office districts have come into their own as a result of the recent activity, with Spaulding & Slye Colliers placing the current vacancy rate for Charlestown at just 1.2 percent. Average rates in that submarket are at $37.52 per square foot.
Intercontinental Activity
Meanwhile, closer into Boston at North Station, the Intercontinental Cos. is pushing ahead with plans for a mixed-use complex at the former Stop & Shop bakery warehouse. The project would include nearly 200,000 square feet of office space, plus luxury residential units that would be added to the top of the six-story building.
“As long as the economy holds up, that should be a home run,” said McFarland. “It works really well as a mixed-use project.”
Although it is just a short distance from the Hood Business Park, McFarland said she believes Intercontinental’s plan might have a leg up in attracting tenants due to the presence of public transportation. North Station is currently averaging $42.32 per square foot, according to Spaulding & Slye, and has a vacancy rate of 0.2 percent.
“There’s really nothing available,” said McFarland. She predicted that the Intercontinental plan would also be well-received due to fundamentals such as large floorplates and rents that would be substantially lower than comparable low-rise space in downtown Boston office towers.
