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The Massachusetts Department of Transportation overstepped its authority in a 2018 eminent domain taking for a South Boston property owned by Boston-based developer Core Investments, the Supreme Judicial Court ruled.

Justices said MassDOT should have compensated Core Investments for the easement on a South Boston property at the corner of Cypher and B streets, and ordered a Superior Court judge to reconsider the case.

“We are gratified that the Supreme Judicial Court has agreed with us in this eminent domain case. Core has long planned and still desires to design and construct a commercial building on the property that will be a distinct asset to the city of Boston, South Boston, and residents of the immediate neighborhood,” Core Investments said in a statement following the ruling.

The dispute centers on an 18,088-square-foot parcel which was acquired by Core Investment affiliate Smiley First LLC in 2015. The property includes a 12,510-square-foot section subject to a 1991 taking from MassDOT connected to construction of the South Boston Haul Road as part of the Central Artery Tunnel project. MassDOT’s easement enabled Conrail to relocate railroad operations displaced by the haul road.

In 2017, the MBTA announced plans to build a test track and 6,000-square-foot building for newly-acquired Red Line subway cars, and plans to use a section of the Cypher Street property for that purpose.

SJC justices ruled that the easement was limited to the terms of the 1991 taking for Conrail’s relocation.

“The Red Line test track project… is a new and different project from the original relocation of Conrail’s railroad track and facilities,” justices wrote in this week’s decision, ruling that Core Investments can pursue its claim for damages.

In an email, MassDOT spokesman Jacquelyn Goddard said the agency “is reviewing the court decision and evaluating options. The test track is vital to the needs of the Red Line fleet as it is used for all Red Line car testing. The location is adjacent to the Red Line maintenance property which allows for efficient testing operations.”

The property also sits in the path of a long-contemplated potential new rail service route that would improve access to the area near the Boston Convention and Exhibition Center.

In 2016, some Boston officials floated the idea of using the track to connect to the MBTA’s Fairmount commuter rail line, linking the Seaport District and South Boston neighborhoods with the Fairmount’s service to Dorchester, Roxbury and Readville.

Goddard said “the MBTA looks forward to future discussions with the city of Boston, advocacy groups and adjacent landowners on the use of Track 61 for passenger service to and from the Seaport.”