BOSTON, MA. — In recently bringing out a new listing on Newbury Street, Boston Realty Advisors rightfully boasted about the thoroughfare’s global allure and lineup of national and international powerhouses from the Public Garden to Massachusetts Avenue.
Now, the firm based at 745 Boylston St. has an exclusive mere blocks away at 903 Boylston St., and according to retail expert Michael d’Hemecourt, that venue is rapidly catching up to the parallel Newbury Street shopping experience, especially now that Under Armour is opening its second largest store in the country at 888 Boylston St., a new addition to the Prudential Center complex across from which 903 Boylston St. is perched.
Already, there is an Apple store at 801 Boylston St. and Tesla Motors is yet another firm on the dais to become an occupant of the Shops at Prudential. “People are really excited about what is happening over there right now,” d’Hemecourt tells Real Report this week in confirming the latest assignment on behalf of a private investment group.
BRA was involved in landing both Tesla and Under Armour, and D’Amato says those changes coupled with the Mandarin Hotel retail are shifting the dynamics. “There is a real feeling that these are going to make a positive difference for everybody.” In that regard, he says, the impact is less about competing against Newbury Street and enhancing the shopping activity for the benefit of all parties. The asset is seen by industry observers as likely to fetch somewhere in the stratospheric range of $1,200 per sf, or approximately $9 million.
While he explains 903 Boylston St. is being shopped minus pricing allocations, d’Hemecourt says he does anticipate competition will be “motivated” to pursue the listing. “We expect a lot of activity there,” he says. Other members of the BRA retail practice group working on 903 Boylston St. is Managing Director/partner Whitney Gallivan, Associate Director Christopher J. Donato and Associate Jaime A. Russell. They are getting assistance from Capital Markets leader Jason S. Weissman and Managing Directors, Anthony W. Biette and Nicholas M. Herz.
Besides the frothy location, BRA is promoting 903 Boylston St. as an opportunity for an investor to buy a cash-flowing, single-tenant property that would seem to be in good shape regardless of whether the Irish pub occupying the space opts to exercise a five-year renewal in 2018 or moves on in the face of having to pay a market rate for that extension, one that would provide a 120 percent increase in net operating income when using current market averages. Should the restaurant, Lir, move on, BRA says there is an acute shortage of buildings in the area that can accommodate a lone tenant or flagship store, making 903 Boylston St. “ideally positioned to take advantage” of that climate.
The store consists of 7,475 sf of space on the ground floor and a second level. One interesting twist is the building once had three other floors above the second story, that are no longer there, creating a bit of a mystery as to where they went, but also the perceived opportunity to replace them should the new owner be so inclined. “Whether someone decides to pursue that is up to them, but it would be an opportunity to add significant value to the property if they do,” says d’Hemecourt.
Find the full report on The Real Reporter.Tags: Anthony Biette, Christopher Donato, Jaime Russell, Jason Weissman, Michael D'Hemecourt, NICHOLAS M. HERZ, Whitney Gallivan