Four bids have been submitted for the Massachusetts Turnpike Authority’s Parcel 9 property in Boston, Banker & Tradesman has learned, including a proposal for a 170,000-square-foot, mixed-use development from The Gutierrez Co. and another proposal incorporating residential development.
Turnpike officials were not immediately available to discuss the bids, which were unsealed at noon Tuesday. The fact that there were multiple bidders on the property would seem to be a statement of faith in the long-term prospects of Boston’s real estate market, which has been battered by falling values and ballooning office vacancies.
Some local real estate observers worried that a lone bid on the property, from the Boston Museum, may signal a disaster for the Turnpike as it tries to unload assets and raise money. The parcel is valued by the City of Boston at $5.5 million.
Gutierrez is proposing to build a 6-story, 170,000-square-foot, mixed-use building on the 29,400-square-foot parcel, which abuts the Rose Kennedy Greenway and Haymarket. The first floor would be a mix of retail and market uses, in line with the Boston Redevelopment Authority’s wish to reinforce Haymarket’s market characteristics. The upper five floors would house office space.
"It’s a pretty exciting parcel, and we hope to be the frontrunner," said William Caulder of The Gutierrez Co. ADD Inc., of Boston, performed design work for the Gutierrez proposal.
The Boston Museum, a nonprofit organization seeking to build a $120 million city history museum on the parcel, publicly disclosed its bid some time ago.
In addition to Gutierrez and the Boston Museum, two other local developers took a crack at the parcel.
Developer Philip DeNormandie, who owns a block of adjacent buildings on Blackstone St., wants to top a first-floor market on Parcel 9 with four floors of office space. NeNormandie is also proposing replacing his own Blackstone block with new 5- and 6-story mixed use buildings that would combine office and market uses. DeNormandie’s architect is Mintz Assoc.
Eastat Realty Capital, the fourth bidder, is the only development firm proposing residential uses for the Greenway parcel. Eastat’s 5-story proposal includes first-floor market space topped by parking and 78 units of apartments. Eastat is currently redeveloping the Ames Hotel in downtown Boston. Last year, the developers floated plans to build a 24-story office building on Stuart St., behind the Jacob Wirth restaurant. Eastat’s architect is CBT.
Given its lack of funds, competition can’t bode well for the Boston Museum in the face of well-heeled developers like Gutierrez. The nonprofit group has reportedly raised just $7 million, and its financial stability was recently questioned by the Turnpike’s executive director, Alan LeBovidge.
