Mayor Thomas M. Menino speaks at the opening of the International Cargo Center of New England on South Boston’s waterfront. At right is state Rep. Brian P. Wallace.
It’s not sexy. There are no kitchens with mahogany cabinets, granite countertops or stainless-steel appliances. And you won’t find living rooms with bamboo floors, gas fireplaces and exposed brick.
But the opening of the $65 million, no-frills International Cargo Center of New England on South Boston’s waterfront last week is the largest single financial investment ever made in the Boston Marine Industrial Park.
“For hundreds of years, the people of Boston have looked to the harbor as a source of commerce,” said Mayor Thomas M. Menino. “Today, that tradition continues as we open this new state-of-the-art cargo transportation facility that will become the park’s new gateway.”
The project represents the city’s commitment to maintain an industrial presence in Boston’s changing Seaport District, which has two hotels in the pipeline on top of plans for more than 3,600 housing units. The new 300,000-square-foot facility is good news to corporate neighbors who fear that the addition of lodging and luxury condominiums nearby could spell disaster for the booming waterfront cargo industry.
“We’re down the street from all the new or planned construction of residential and office buildings, so it’s a concern to commercial tenants,” said Daniel Kenary, president of the Marine Park Business Association and co-founder of Harpoon Brewery, which is located on nearby Northern Avenue. “We need to make sure that good and unobstructed truck access into and out of this park is maintained.”
Menino and a handful of public officials lauded the new cargo center, saying it will boost the economy and serve as a magnet for companies looking to relocate. The 3-story warehouse contains more than two dozen bays that take up the majority of the facility. Tenants of the former Boston Freight Terminals building that was razed to make way for the new center, including the U.S. Customs Service, have moved into the new building. The prime location allows for easy interaction among key modes of cargo transportation including trains, ships and trucks.
The cargo center’s new state-of-the-art building also will house office and retail space. The third-floor office space is rented, while leasing is under way for prospective tenants interested in the second- and first-floor spaces. A local bank, First Trade Union, already is serving customers on the first floor.
Still, Michael Edward, senior vice president at Meredith & Grew, a Boston-based commercial real estate brokerage, said while the new cargo space is ideal, it is pricey. He noted that average asking rents for such industrial property in Boston is $9 to $11 per square foot while the center has asking rents that reach the high teens.
“They’re trying to attract cargo users who want to be near [Logan International Airport] and may not mind paying those prices,” said Edward. “But we’re working with a couple of tenants seeking industrial rates of $8 to $10 per square foot.”
‘We Must Succeed’
U.S. Rep. Stephen F. Lynch, a former ironworker who was once employed on the waterfront, said the issue of job creation is central to the surge of construction at the marine park.
“The quality of jobs that are being created here are the type that can sustain health care and educational opportunities for local families,” said the South Boston Democrat. “This is really an area where we must succeed if the city is to grow.”
Jacob Citrin, president of Cargo Ventures LLC, the project’s developer, said in the mid-1990s there were questions about whether Boston’s port was dead or dying. But since then, the political leadership has been supportive of development and helped to boost the amount of square footage used for international operations on the 9.5-acre site, he said.
“Today, we know that the port of Boston is growing and no one questions the vibrancy and the resurgence of this port any longer,” he said. “Our greatest thanks must go to each of you [public officials] for your support and creating and fostering this environment.”
Menino said the project will create nearly 500 permanent jobs for city residents and serve as a catalyst for other companies to locate at the terminal, increasing business-to-business opportunities.
“There’s a misconception that only maritime-related manufacturers are allowed to locate in the park and that’s not true,” Menino said. “The park is open to all types of manufacturers ranging from the biomedical field to a brewery.”
Two of the tenants considering leasing the space on the second floor are biotechnology and bioenergy clients. Those Massachusetts industries are a key part of the new port, Menino said. Such businesses also could be lured by the administration’s Life Tech initiative, which ensures that those types of companies receive the resources they need to thrive in the city, the mayor added.
Earlier this year, the Dana-Farber Cancer Institute, the principal teaching affiliate of the Harvard Medical School, made a $2.5 investment locating some of the offices in its new harbor campus in the Boston Marine Industrial Park. At the time, Dana-Farber made plans to move some of its research operations to the harbor campus to help address space constraint on its main campus in the Longwood Medical and Academic Area. Dana-Farber has leased more than 49,000 square feet of space on the first and fourth floors of the Drydock Center at 27 Drydock Ave.
The 7-story Drydock Center was built by the federal government in the 1930s and used to process military draftees. Now owned by the Boston Redevelopment Authority, the building is located within the Boston Marine Industrial Park, the largest industrial park in Massachusetts. The city of Boston purchased the 191-acre site in 1977 to create jobs and economic activity. Today, more than 3,500 jobs are based in the park.
“We are seeing greater variety of companies here – including life-tech industry and medical institutions – because, for one thing, space is affordable and flexible and it’s close to downtown, Logan Airport and [Interstate 90 and Interstate 93 on the Massachusetts Turnpike], and companies are eligible for business loans,” said Menino. “We have it all right here.”
