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Ashkenazy Acquisition Corp., the retail real estate investor that’s operated Faneuil Hall Marketplace in downtown Boston since 2011 and clashed with city officials about repairs and tenant selection at the city-owned property, is selling.
The buyer: the real estate investment arm of New York City private banking firm The J. Safra Group.
A sale price was not included in a press release issued by J. Safra Monday night. Ashkenazy had bought the lease to Faneuil Hall for $136 million.
“Faneuil Hall Marketplace is a tremendous asset and truly the heart of Boston. It is consistent with our real estate portfolio of signature assets. We look forward to working in lockstep with the Boston Planning & Development Agency, the City of Boston and other local constituents to continue the excitement, pride, and success of this world-class destination,” J. Safra said in a statement.
The downtown retail landmark is technically owned by the city, but the 99-year lease then-mayor Kevin White signed with original developer The Rouse Co. in 1975 only calls for an annual rent of $10 plus regular payments in lieu of taxes, and gives the lessor wide latitude to run the property.
This latitude has been a source of strain between Ashkenazy and both Mayor Michelle Wu and her predecessor Marty Walsh. Ashkenazy’s treatment of retail tenants and repairs on the property during the pandemic came in for criticism from the latter and Wu has echoed many city residents’ longstanding complaints that the retail tenant mix skews primarily towards national credit tenants catering to tourists and away from locally owned stores. It’s not clear if J. Safra has plans to change this leasing strategy.
J. Safra did not respond to a request for comment.
In a statement, Wu called the change in ownership an “opportunity.”
“Quincy Market is the first experience that many people from around the world have of Boston, and we have the potential to showcase the talent, the diversity, and local flair of more of our own small businesses and entrepreneurs. This is an opportunity to create a more vibrant and welcoming space for residents and visitors, while supporting the vitality of Downtown Boston,” she said.
In a statement issued as part of J. Safra’s announcement, Ashkenazy COO Joe Press said, “It has been our honor and privilege to have served Faneuil Hall Marketplace, the City of Boston, and the millions of visitors who have enjoyed their experiences at this historic asset.”
Updated 1:08 p.m. Jan. 30, 2024: This story has been updated with comment from Boston Mayor Michelle Wu.
