Boston-based Davis Cos. has paid $60 million to buy the ground lease for the 376,000-square-foot 88 Black Falcon Ave. at the eastern tip of South Boston’s marine industrial park.
It’s hired Boston-based architects Dyer Brown to update the office and industrial complex, part of a rapidly evolving neighborhood where ship repair yards and seafood processing plants mix with architects, life science companies and high-tech startups. 88 Black Falcon Ave. is currently 94 percent occupied by office and industrial tenants, including recent arrival Optimus Ride, an autonomous vehicle startup that occupies 19,000 square feet.
“The neighborhood is one of the most exciting redevelopment areas in the country if you look at what’s happening there and the range of companies that want to be there,” Davis Cos. CEO Jonathan Davis said.
Reebok in December leased 220,000 square feet for its new corporate headquarters in the nearby Innovation and Design Building, controlled by Atlanta developer Jamestown. And Boston-based Related Beal acquired the lease for 27 Drydock Ave., a 286,000-square-foot converted warehouse that’s 84 percent leased, for $146.5 million, also in December.
Prologis, a San Francisco-based industrial REIT, previously held the ground lease with 88 Black Falcon Ave. owner Massport, which controls portions of the 191-acre Raymond L. Flynn Marine Park. As part of the transaction, the ground lease was extended by 48 years through 2098.
Under Chapter 91 regulations, 75 percent of the building’s occupancy is reserved for marine industrial users, Davis said.
“While we respect and want to protect the marine industrial uses in the building, the goal would be to have more flexibility as those requirements evolve,” Davis said.
Industrial tenants include CEVA Logistics, BBX Transportation, Lee Kennedy Co., and JCDecaux; office tenants include Optimus Ride Inc., Cesari & McKenna, Citizens Energy, Steffian Bradley Architects and WSP Flack + Kurtz.
Dyer Brown is designing upgrades to common areas including upgraded fitness facilities, lobbies and food service.
Although 88 Black Falcon Ave. comes with 550 parking spaces, Davis Cos. plans to work with neighboring landlords to upgrade private shuttle services, Davis said.
