BOSTON — Boston Global Investors has signed a joint venture development agreement with three partners, including Amsterdam-based EDGE Technologies, for the development of the 401 Congress St. office building valued at $ 450 million in the sector. waterfront South Boston.
The joint venture agreement between Boston Global Investors, Eagle Development Partners, The Cogsville Group and EDGE Technologies was signed at the Holland Trade Dinner in Boston on July 18 in the presence of Dutch Prime Minister Mark Rutte and Massachusetts Governor Charlie Baker.
The Massachusetts Port Authority (Massport) Board of Directors voted in November 2018 for the authority to enter into a development agreement and land lease with Boston Global Investors and its team for the A-2 plot in South Boston . Boston Global Investors filed a letter of intent with the Boston Planning & Development Agency on May 22, 2019 for the 645,000 square foot office tower on the Parcel A-2 site at 401 Congress St. The project also includes a building to be built on the adjacent Triangle plot.
“This state-of-the-art building will be developed according to the joint expertise of all the partners. Given the dynamics of the current market, the location of the site and the potential for development and its area, the project will create a unique impact: not only strengthening the position of the South Boston Waterfront as an economic hub, but also contributing in a positive and meaningful way to the public domain, ”said John B. Hynes III, CEO and Managing Partner of Boston Global Investors.
In its letter of intent, Boston Global Investors said the 18-story office building at 401 Congress Street will contain approximately 585,000 square feet of office space, starting from the third floor. A new elevated pedestrian bridge will connect the 401 Congress to the new building on the Triangle plot. In total, BGI’s Hynes said in the company’s letter to BPDA that the project will include approximately 66,000 square feet of outdoor public space and 65,000 square feet of indoor public space, including a large hall of two. floors at the level of the congress street.
As co-developers, Boston Global Investors, Eagle Development Partners of Stoneham, MA, EDGE and The Cogsville Group of New York City form the overall partnership for the project, each contributing what the partnership calls “significant capital”.
In an effort to help the city, state and Massport’s goal of fostering greater racial and gender diversity and inclusion in development projects, the development team has established an aggressive diversity plan and inclusion, which includes the creation of an investment union to encourage women and people of color from across the country to invest in the project.
The project is committed to: 15% of development costs owned and managed by development partners of the minority joint venture within the Cogsville group and Eagle Development Partners; about 20% of all consultant contracts are awarded to minority-owned companies; 30% of the construction management contract to a general contractor owned by a minority and persons belonging to minorities and women representing about 60% of all staff members of the development team.
Additionally, the project has committed to a $ 4 million community benefits fund that will be distributed in urban Boston neighborhoods to help fund local nonprofit organizations and programming efforts.
The project marks EDGE’s entry into the Boston market and the company’s second in the United States.
“We are truly excited to announce our second development in the United States and look forward to working with Boston Global Investors to help transform the waterfront from South Boston to Boston,” said Coen van Oostrom, Founder and CEO of ‘EDGE. “With our experience in improving sustainability and well-being in buildings through the implementation of our smart technology, we can dramatically improve the overall quality of life for future tenants and the South Waterfront community. Boston. “
In June, EDGE announced its entry into the UK commercial real estate market with the acquisition of a redevelopment in London. In 2018, Edge completed the transformation of Unilever’s New Jersey headquarters.
The project currently submitted to the Boston Planning & Development Agency is expected to be completed in early 2023.