A development site in Boston’s Fenway that’s approved for a 28-story residential tower will hit the auction block next month, signaling potential distress for the London-based developer behind the project.
The site 2 Charlesgate West, a block east of Fenway Park next to the Massachusetts Turnpike, was slated for a 400-unit tower called The Bridge. Scape USA, the United States subsidiary of a London developer, won permitting approval in January but has not broken ground on the project, the Boston Business Journal reported.
The auction is scheduled for Aug. 12 through Paul E. Saperstein Co. Auctioneers & Appraisers. Scape USA could not be reached for comment by the publication about the sale.
The auction was first reported by Banker & Tradesman.
Scape purchased the site for $39 million in 2019, along with 6 Charlesgate West and 1161 Boylston Street. Mack Real Estate Credit Strategies provided a $30 million acquisition loan.
The developer pitched a 285,000-square-foot project in 2021. The Boston Zoning Board of Appeals granted final approval in January for a 400-unit, 299,000-square-foot apartment building. As part of the plan, the developers agreed to a $3.2 million community benefits package, which included a $500,000 payment for the Boston Parks & Recreation department and $300,000 for the Fenway Community Development Corporation.
The site spans just under half an acre and contains a vacant six-story building totaling 56,000 square feet, according to the auctioneer. The Trans National Group formerly occupied the space.
The approved tower would have added substantial density to the area, contributing to Boston’s housing supply amid ongoing affordability challenges.
“We remain in active discussions with our existing lender regarding the project and are concurrently exploring refinancing alternatives with other lenders and strategic partners,” Morro USA chief development officer David Hunt told Bisnow; Morro was co-founded by the founder of Scape and is a partner on the development.
Scape, which established its U.S. headquarters in Boston in 2018 and has been positioning itself as a major player in the local residential market. The company opened another Fenway housing project in 2023 — The Bon — a residential building on Boylston Street.
The Bon has performed well since opening. Studios start at $3,000 and two-bedroom units are priced from $5,224.
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