Mayor Menino has criticized the real estate plans of Vornado Realty Trust. According to the Boston Herald, Mayor Menino is angry over Vornado's plan to bid for an ownership stake in the John Hancock tower while it fails to complete a project in Boston's Downtown Crossing shopping district. Mayor Menino told reporters that it was just wrong for the real estate developer. He said: "It's wrong. It's about greed. All they want to do is enrich their bottom line."
Vornado stopped construction of a $700 million mixed-use high-rise in the center of Boston's Downtown Crossing shopping back in 2008.
Not all real estate insiders agree with Mayor Menino's assessment of the developer. David Begelfer, chief executive of commercial real estate association NAIOP said that Vornado was just being smart. He told the Boston Herald: "Vornado has been trying to get financing for two years (for Downtown Crossing), and it's not because they're inept at it. You can't build it no matter how much pressure is put on you and risk putting up a building with no idea who's going to occupy it."
He also said that when Vornado requested a scaled down version of the project from Mayor Menino, that the Mayor rejected the request. However, had the Mayor moved forward with the request, Vornado could have possibly added to it later as the economy got stronger. Begelfer said: "A person would be insane not to ultimately build a tower on top of that when the economy comes back."
While Mayor Menino has stated his opinion about Vornado, he claims that he will not get involved in the Hancock sale. This is in spite of what the Boston Herald calls his "notorious influence over Hub real estate."
If you have questions about buying or selling real estate in the Hub, talking to a Boston real estate lawyer could help. For more general information, please visit our Related Resources links.
Related Resources:
- Mayor Menino Tackles Abandoned Properties Problem In Boston (FindLaw's Boston Real Estate Law News Blog)
- Consult With A Boston Real Estate Attorney (FindLaw)
- Park Lane Seaport Apartments Building For Sale (FindLaw's Boston Real Estate Law News Blog)
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