Sound familiar? Plan for Boston luxury skyscraper shelved amid worries of oversupply

Miami /
Nov.November 06, 2016 02:15 PM

From the New York site: It’s a situation that might sound all too familiar to New York real estate insiders.

A plan to build one of the tallest residential buildings in Boston has been scrapped amid concerns about high construction costs and oversupply in the luxury market, the Boston Globe reported.

Publicly-traded mall giant Simon Property Group announced in a third quarter earnings call that it was putting aside plans for the 625-foot, 52-story residential tower atop Boston’s Copley Place.

“I would encourage everybody to study what’s going in construction costs and what’s going on in supply and demand” in Boston, CEO David Simon told analysts, noting that the company might revisit the project at a later date. “It’s just not the right time to do it,” he said.

Greg Vasil, chief executive of the Greater Boston Real Estate Board, told the Globe that the Boston market was topping out.

“We’re probably at the peak, or bumping along,” he said.“The question is, do we continue to bump along or do we start to come down. And everybody’s wondering what happens when that happens.”

In New York, Chinese developer CL Investment Group recently pulled the plug on a $300.2 million luxury condo conversion of the United Charities office building at 287 Park Avenue South in the Flatiron District amid rumblings of oversupply, opting instead to keep the building commercial. [Boston Globe]Katherine Clarke


Related Articles

arrow_forward_ios
Vladislav Doronin (Credit: Gesi Schilling via Wikipedia)

Billionaire developer Doronin buys Fort Lauderdale assemblage for $63M

Billionaire developer Doronin buys Fort Lauderdale assemblage for $63M
Seth Wise, Co-CEO of The Altman Companies, Altís Ludlam Trail

Altman scores $55M construction loan for Ludlam Trail project

Altman scores $55M construction loan for Ludlam Trail project
Joseph Swedroe (Corcoran, iStock)

Corcoran agent in Miami loses job over “racist and fear-based” marketing

Corcoran agent in Miami loses job over “racist and fear-based” marketing
Vanessa Grout with Vladislav Doronin

Vanessa Grout leaves Ugo Colombo’s firm to lead OKO Group’s real estate arm

Vanessa Grout leaves Ugo Colombo’s firm to lead OKO Group’s real estate arm
Rendering of the project with Jon Paul Pérez (top) and Jorge Pérez 

Related switches gears on Terminal Island project, now plans low-rise offices

Related switches gears on Terminal Island project, now plans low-rise offices
Edgardo Defortuna and a rendering of La Playa de Varadero

Not stopping for the pandemic: Fortune, Château could launch Sunny Isles project by year-end

Not stopping for the pandemic: Fortune, Château could launch Sunny Isles project by year-end
Richard Branson (Credit: Virgin, Cindy Ord/Getty Images)

Virgin Trains seeks $350M to build five stations in Miami-Dade

Virgin Trains seeks $350M to build five stations in Miami-Dade
Easton Group picks up land in Hialeah Gardens for $8M

Easton Group picks up land in Hialeah Gardens for $8M

Easton Group picks up land in Hialeah Gardens for $8M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...