archBOSTON ARCHIVE

[Matt]

Interesting...this place site could hold a large tower, right?
-------


Seven developers seek historic Filene's site
Basement likely to survive change[

By Thomas C. Palmer Jr. and Andrea Estes, Globe Staff | December 21, 2005

Seven companies have put bids in to buy and most likely redevelop the landmark Filene's building at Downtown Crossing, which is being sold by Macy's owner Federated Department Stores Inc., according to City Hall officials monitoring the sale.

It is almost certain that Filene's Basement -- which holds a long and low-rent lease -- will stay in place. But the upper floors could house additional retail space, and developers are contemplating constructing one or more towers on top of the building for luxury residences, offices, or some combination, real estate executives said yesterday.

''We're interested," said Robert Epstein, chief executive of the Abbey Group, the Boston firm that redeveloped an old Sears warehouse into the Landmark Center near Fenway Park and recently submitted a proposal for Filene's. ''I'd love to tell you we got the deal."

Newton-based developer Stephen R. Karp, who built the Atrium Mall in Chestnut Hill, also bid on the site, according to a real estate executive who asked not to be identified.

The Filene's building on Washington Street is in a prominent location, with an MBTA stop underneath that brings in throngs of people. But the 656,000-square-foot complex is a complicated site because of the presence of Filene's Basement and the building's designation on the National Register of Historic Places. Both factors could constrain redevelopment.

Bids were due for the 83-year-old building early this month, and it is unclear when Federated will choose a buyer. Filene's is slated to vacate the space next year. A Federated spokesman confirmed that ''there has been interest in the store" but wouldn't say who had bid.

''There are a lot of negotiations going on around the country, and it's not in our best interest to comment until we have a final determination," said Jim Sluzewski, the spokesman.

But who will move into the high-profile space is being closely watched.
The tenant ''is going to have a huge effect on Downtown Crossing's future and its ability to remake itself as one of the city's most vital retail districts," said Steven B. Samuels, chief executive of Samuels & Associates. Samuels, who is developing the large apartment complex Trilogy in the Fenway, did not bid on Filene's but said he might be interested if no deal is sealed immediately.

Federated put the Filene's building up for sale after it purchased Filene's's parent, May Department Stores Co., earlier this year. Federated will close several Filene's stores in Massachusetts next year, as well as other regional stores elsewhere, and sell their spaces. The remaining Filene's stores will be renamed Macy's.

Macy's department store in Downtown Crossing will remain across Summer Street from the Filene's building. Mayor Thomas M. Menino has promoted the idea of the popular discount store Target moving into Downtown Crossing, but Target was not among the bidders disclosed by the officials from the mayor's office, who asked not to be identified. Target Corp. could not be reached for comment.

Several developers expressed interest in the potential for renovation and adding at least one tower to the building. A partner of Stephen Weiner, who developed the Mall at Chestnut Hill,said Weiner is interested in the Filene's building and is in the running. The partner spoke on the condition that he not be identified.

According to City Hall, a team including Viking Asset Management and Aurora Capital Associates also bid. Officials at neither Viking nor Aurora could be reached for comment late yesterday.

None of the bid amounts were available. But real estate analysts have estimated the building could bring $130 million or more.

Despite the number of bids, developers yesterday said the site is not an easy one to redevelop because of the difficulties the Downtown Crossing retail district has experienced, the intense level of interest by City Hall officials, and uncertainty over how high the city might allow a new tower or towers to rise over the building.

Perhaps the most vexing factor is the presence of Filene's Basement, a favorite of City Hall that will apparently have to coexist with any new retailer, and whose presence also could make construction on the site difficult.

Filene's Basement, operated by a different company than Filene's, has a lease that runs through about 2025, at rent that industry executives said was low -- and one potential buyer characterized as ''essentially nothing." Potential bidders signed an agreement not to disclose details pertaining to the transaction.

A Filene's Basement spokeswoman, Patricia Boudrot, said the company does not know who the bidders are, but believes the store's future is secure. ''Lawyers have reviewed the lease and believe it is airtight," she said. Boudrot said about 10,000 shoppers visit the downtown store each day.

For Epstein of the Abbey Group, the off-price store is not an obstacle.
"It's Filene's Basement -- it's part of the allure," said Epstein.

Epstein said the Abbey Group had bid one amount on the building as is, and offered ''bonuses" for Federated that would be triggered later if the city approved expanded development such as a new tower. ''The city probably doesn't know yet what they want to see on that site," said Epstein. He said any buyer would probably go through a planning and designing process of a couple of years.

What is built would depend heavily on market conditions -- whether there's demand for condominiums or office space. New towers, if approved, could house a combination of uses.

''We're thinking: Keep exploring all options with the city," said Epstein. ''Residential, commercial, maybe some of each."

Menino said he will do whatever he can to ensure Filene's Basement stays in business at that site. As he collected money for the Salvation Army at Downtown Crossing yesterday, shoppers asked him to make sure the store remains open, he said.

"It's a fixture in our city," said Menino. ''It's a landmark and should be treated as a landmark."

[Ron Newman]

An immediate issue that needs to be dealt with, before any redevelopment: how will people get in and out of Filene's Basement, once Filene's is no longer open? Will the first floor of Filene's be left open but vacant, so people can use the escalators into the Basement?

In the short term, perhaps the Basement should be allowed to temporarily expand onto that first floor.

[statler]

[Ron Newman]

Is the Basement already served by Filene's elevators? I don't remember, since I almost never use elevators in department stores. (If it is, I wonder how they keep customers from transporting unpaid-for merchandise from one store to the other.)

[statler]

[Ron Newman]

I wandered through Filene's and the Basement this evening, and now understand the elevators better. The main Filene's elevators, used by shoppers in the main department store, go only up from the first floor. They do not reach the Basement levels.

However, a second bank of two elevators is located at the corner of Hawley and Summer Streets. These elevators serve all floors, but access above the first floor is restricted to Filene's employees. (If you try to press a button for floor 2 or above, a sign lights up saying you need some sort of access pass.) Their main purpose is to connect the first floor to the two Basement levels.

Since these elevators exist, I conclude that Filene's Basement is ADA-compliant.

[statler]

[Ron Newman]

You walk into the Filene's entrance on Summer Street next to Hawley Street, and go immediately to the right to reach these two elevators.

I don't know what arrangements are made for days when Filene's and the Basement have different opening or closing hours. But there's probably some gate that can be closed or installed, to allow access to these two elevators while closing off the department store's first floor.

Next to the elevators is a set of alarmed exit-only doors to Hawley Street. Perhaps these can be opened in such a circumstance.

By the way, these elevators also have a button for a B3 level that is for employees only.

[Ron Newman]

More on Filene's ...

There are currently six selling floors. On the sixth floor, there are locked doors leading to escalators that go to a seventh floor. I assume this was also once a selling floor, but no longer is.

If there's anything left of the historic interior at Filene's, it's pretty well hidden, or at least I didn't see it. The exterior is definitely worth preserving, but not the inside -- unless it's still there behind all the modern walls and dropped ceilings.

[garbribre]

I used to always enter from the exterior next to Kennedy's--I'm dating myself here --without going through the upstairs main store. That must have been the restricted doors on Hawley you are talking about, Ron.

[Lurker]

Next thing you know you'll be telling us about you visit to Uncle Eph and Everybody's Santa around this time of year. The mezzanine level of Filenes has some original detail except where partitions were added and the floors extended along with the outer walls on every level which are now stockrooms. R.H. Stearn's is the only department store building which has really maintained ground level ornament behind drywall and ceiling tile.

[Ron Newman]

I thought I saw only the elevators, not any stairways, next to that Hawley Street door.

[statler]

Are the large pillars on ground floor original or are they a later day addition?

[Roxxma]

[Lurker]

R.H. Stearn's is on the corner of Tremont and Temple, the signs are still painted on the brick work and present on the awnings. The upper floors are now elderly housing, the ground floor is a mixture of retail and a tourist information office.

[Ron Newman]

And the former Gilchrist's is now The Corner Mall on the first floor, with state Department of Environmental Protection offices on the second floor. I'm not sure what's on upper floors.

Besides this one and Stearns, are any other former department store buildings still standing downtown?

[garbribre]

^Raymonds, for one, on the corner of Tremont and....uh-oh....dead brain cells....down a few blocks from Stearns towards Boylston....Temple Place?

I always entered The Basement on Hawley street. Probably plastered over or re-oriented the entrances, which were on both ends of the block.

I've been/shopped in most of the old department stores while they were still operational, many of which have since been demolished. My mom was a model (yeah, yeah make all the jokes--heard them all), so she knew everyone and everyplace.

statler, the columns/pillars on the first floor seemed original to my recollections when I was in Filene's in April and September this year. But upon reflection, these may be encased by 'drywall', so more ornamental columns may still exist underneath.

(Aside: Had to go on a mad shopping spree--upstairs, no less! For starters, there's no tax on basic clothing purchases in MA; we have a 9% tax on all purchases in Oakland. Plus I was not properly packed for the extreme weather surprises during my trips.)

[Ron Newman]

Raymond's is before my time, but I'm pretty sure it was on Washington Street.

[ablarc]

[Ron Newman]

I've been told that Raymond's was originally further up Washington Street, and that they temporarily moved to the site you mentioned when the city tore down their building to put up a more modern replacement.

Unfortunately, by the time that new building was finished, Raymond's had gone out of business and therefore could not move into it. So it instead became a very large Woolworth's. Now it contains Marshall's, TJ Maxx, and H&M.

[Lurker]

Raymond's was in a series of buildings where Marshall's and the CVS is now and before that it had been were the 1950's Jordan Marsh addition is now. The Chinatown T entrance went up into a series of generic store/office buildings connected to R.H. White which was in part of the current Lafayette Center footprint with Avon Street separating it from the 1930's Jordan Marsh Building. R.H. White went out of business and was temporary occupied by Jordan Marsh for some specialty sales. Raymond's moved down the street into the generic store space next to the R.H. White building, they went out of business and were replaced by a company called Hayward's that lasted about a year before folding. The confusion about what was where I think stems from the abandoned MBTA stations page that refers to the Chinatown exit as being in Raymond's. The current exit is in the Essex Washington building which was built for Seigel's department store which went bankrupt in 1925 and had their space converted into general retail and the Cinerama theater. Neisners is the other surviving department store building, where Wendy's and the Children's place is now, but it has been extensively altered. Hutton and Dutton was on the corner of Beacon and Tremont where the bland office tower is now next to center plaza and across from King's chapel.

[garbribre]

Oooops. Told you my memory for detail was corrupted. So is my mom's. She couldn't remember the name of the store, just the location.

Chandler and Company (exact name still up for debate) on West and Tremont Streets.

This is the best image I could find, certainly after the store had closed. Tried to find an old postcard photo I'd seen years ago when the store was decorated with lights. Unsuccessful. In the above photo, you can see the gap next door where Tremont-on-the-Common is under construction.
I believe there was a Burger King on the ground floor and may still be.

Found this postcard view for sale on Ebay(?!?)

The taller, yellow building on the right side of Tremont would be the department store.

As for Filene's Basement entrance on Hawley Street

Unfortunately, A dedicated entrance to The Basement isn't noticable. It would have been approximately across from the Colonial lunch sign.

Raymond's (all the locations that Lurker mentions) was still standing when I was kid. I remember watching it/them get demolished along with the Jordan Marsh Annex and RH White's (which, by the 60's/70's was used for furniture showrooms and displaying larger items of that ilk, I recall). Still searching for photos.

[Lurker]

I forgot about Chandler, S.S. Pierce was also in the vicinity which was kind of a department store of fine foods and spirits.

[Ron Newman]

I thought S.S. Pierce was in Copley Square, where the Westin Hotel is now.

[garbribre]

Ohhhhh, that's right. I used to go to SSPierce with my dad...for something or other he could only get there. Where was it downtown? Cannot locate pics, except those that reference its old Copley Square location.

Houghton and Dutton and the original Beacon Theatre (now where One Beacon Tower stands and the Beacon Hill Cinema used to be)

purdy.

Raymonds (one of the many locations) 360 Washington location


This Filene's facade is long gone and not just buried under a facade. Tsk.


I'm having a flashback. The candy canes. The palm trees. I remember this Christmas display (1965). I'm oollllllllld!

And the old structure in front of Jordans (diagonal from Gilchrist) is still there! I forgot about that, too

Ok. Stop me now. I'm getting carried away. There's too many photos on the site that you'd all like to see. Go there yourselves. (The link was posted here before.)
http://rfi.bostonhistory.org/boston/

[Ron Newman]

In that first photo, on the left side closest to the camera, I think I see an S.S. PIERCE CO. sign. Which building was Houghton & Dutton?

[Lurker]

Hutton and Dutton was the ornate building with the TO LET sign where the rather soul less office tower now stands on the corner next to the entrance to the Center Plaza garage. It closed in 1947 after being one of the major competitors to Filene's and Jordan Marsh. They used to have ornate light displays during Christmas that are featured in several of the Then & Now type Boston books.

[garbribre]

Yup that's it, Ron. I looked at the original site where I got photo and it references SSPierce is in the description. Good catch.

The building with the Beacon Theatre sign was Houghton Dutton as well. 1895 View up Tremont. It's the tall structure.


I found this in the interim, too. I think maybe we were all confusing SSPierce with SSKresge being downtown.

Walter G. Smith photograph collection, 1934
Avon Street, July 29, 1934
Description: Street-level view looking southeast down Avon Street from Temple Place toward Chauncey Street. Washington is the intersecting street.
60 Temple Place -- 474 Washington Street
Clockwise from left: -- S.S. Kresge Company -- Jordan Marsh and Company -- Liggetts Drug

And Neisner's which Lurker referenced earlier as well, had entrances on both 9 Bromfield and 349 Washington. (The pic was labeled 'looking northwest on Bromfield' 1949)


And to prove Lurker accurate about all of Raymond's moving about, yet another location, Hawley Street view 1942


Franklin Street View 1934 looking from Washington towards Hawley and Arch Streets. Raymond's on the left, Filene's on the right.


The old Jordan Marsh Building just prior to demolition in the mid-70's, where that ugly, blank, brick, 70's wall now faces Washington just before you get to Lafayette Place. Note DTCrossing hadn't been established yet. It's a real street!

Facade detail

Pity. Nice ornament, at least, even though the building was deemed unadaptable to modern retail usage.

Washington Street Entry


Where Lafayette Place looms presently on the left side foreground. Pic is from 1953.


And RH White's further up Washington Street where the empty lot for Hayward Place development now exists across from The Paramount and Opera House.

Monstrous building.

(Okay, I promise to stop here with the old photo overload.)

[Ron Newman]

As Robert Campbell and others have noted, and these photos illustrate, there used to be many more commercial signs on downtown buildings than there are now. You would have had to crane your neck to read some of them on fourth and higher floors.

Love the "REST ROOM FOR OUR FELLERS AND GIRLS" banner on Raymond's.

For those interested in the theatres that are also shown or mentioned on this thread, they have their own pages at CinemaTreasures:

Beacon Theatre, renamed Beacon Hill Theatre in the 1950s, torn down and replaced by a new Beacon Hill Theatre in the early 1970s, triplexed in the early 1980s, closed in 1992

RKO Boston, originally Siegel's department store; later became Boston Cinerama, then Essex Cinema, then Star Cinema showing Chinese films; now empty and closed since the late 1980s

Modern Theatre, also called Mayflower; empty and closed since 1981. A sister theatre to the Beacon.

RKO Keith Memorial, later Savoy, now Opera House

Paramount, soon to be redeveloped by Emerson College

[Ron Newman]

According to this press release, Filene's going-out-of-business sale will start on January 29, 2006.

Filene's is still selling gift cards (or at least they were last week), but signs in the store say that Filene's gift cards will be good at Macy's starting on February 1st.

[Ron Newman]

Responding to a few posts above: there's still an entrance to Filene's Basement on Hawley Street near Franklin, but it's now only an employee entrance.

[statler]

[Rick]

Well, that was fun!!!!!!!

[Mike]

Celtics boss in Filene?s game
By Scott Van Voorhis
Wednesday, January 25, 2006


Celtics owner and longtime Boston developer Robert Epstein is becoming a key player to watch in the competition to buy the landmark Filene?s building in Downtown Crossing, real estate executives say.

Epstein has emerged as a serious contender as the jockeying intensifies for the historic department store building, long the flagship of the shopping district, real estate executives said.

Head of the Abbey Group, Epstein rose to prominence in Boston?s development world with his transformation of Fenway?s hulking Sears building into the bustling Landmark Center office and retail complex.

Epstein has since gone on to become a key owner of the Celtics ? even as he expands his real estate portfolio across Boston.

A deal a few years ago for the Lafayette Corporate Center on Washington Street ? where Downtown Crossing meets the Theater District ? gives Epstein a key foothold not far from Filene?s, executives said.

Epstein could not be reached for comment.

Meanwhile, Minnesota retail giant Target Corp. is at the top of the list of major retailers eyeing the site, whether Epstein or another developer lands the building, real estate executives said.

A spokeswoman said the company is interested in downtown Boston, but declined to discuss specific sites.

?A Target would fit in there perfectly,? said Jim Koury, a retail real estate expert at Spaulding & Slye.

And Epstein faces competition, with a number of other builders having either bid ? or waiting for an opportunity to make an offer, despite a December bidding deadline that?s come and gone.

Retail and housing developer Steve Samuels, for example, has looked at the building and is monitoring the sale.

Developers eyeing the property are exploring the possibility of one or more towers staged behind the turn-of-the-century Filene?s building, where newer additions put on in recent decades might be demolished, executives said.



Link

[statler]

Investor team in talks to buy downtown Boston Filene's site

February 3, 2006

BOSTON (AP) -- Two New York investment partners are negotiating to buy the flagship Filene's store site in Boston's Downtown Crossing, and hope to recruit Target as a possible anchor retailer, according to a report published Friday.

One of the partners, Aled Adjmi, told the Boston Business Journal that he and Robert Cayre hope to buy the property for $100 million to $150 million under the name C&A Capital.

Adjmi said he and Cayre were working to close the deal with Federated Department Stores Inc., and were scheduled to meet with the Boston Redevelopment Authority.

"The contract hasn't been signed yet," Adjmi said. "We are in the midst of completing negotiations."

Federated spokesman Jim Sluzewski told the weekly publication there is "really nothing new to report" and declined further comment.

Adjmi said he has spoken to Target Corp. about opening a store at the Filene's site to anchor a development that he expects will include high-end retailers on lower levels with residential space above. The Minnesota-based retail chain has said it is looking for opportunities in Boston.

The Filene's site is currently 660,000 square feet with potential to build upward above Downtown Crossing, a retail hub that includes a major subway station.

Adjmi, of A&H Acquisitions Corp., and Cayre, of Aurora Capital, own retail property in New York and Chicago.

Several other developers have placed bids for the Filene's site since Cincinnati-based Federated announced plans to acquire former rival May Department Stores Co. for $11 billion. Federated, the owner of Macy's, said it would eliminate the Filene's name and other May-owned brands.

Federated plans to sell the Filene's Downtown Crossing site in part because a Macy's is already across the street.

Filene's had its origins in a small tailor shop opened in 1849 by William Filene, a 19-year-old German immigrant. The current building is listed on the National Register of Historic Places. Filene's Basement, which offers cut-rate merchandise below the Filene's site, remains independently owned.
Link

[statler]

Deal on downtown Filene's may come next week

By Thomas C. Palmer Jr. and Jenn Abelson, Globe Staff | February 3, 2006

Two New York investors expect to sign a deal to buy the historic Filene's building in Downtown Crossing and redevelop it into residences and a possible hotel, in addition to continued retail use.

"We should be wrapped up next week," said Alex Adjmi, president of A&H Acquisitions LLC, who along with partner Robert Cayre has apparently bested a small group of bidders for the block-sized building, put on the market by Federated Department Stores late last year.

Adjmi and Cayre, vice president of Aurora Capital, last year purchased the former Abercrombie & Fitch building near Faneuil Hall and are close to signing a lease with another retailer for about half of that building, which is now empty.

"What they're saying is they like Boston," said James Khoury, a senior vice president at the real estate firm Spaulding & Slye. "They're saying they have confidence in Boston." Khoury said he believes the sale price is approximately $130 million.

Adjmi would not say how much he bid for the building, which houses Filene's, now in its last months of operations, and Filene's Basement, which is not related to Filene's and has a long lease to stay put. Nor would Adjmi say whether he plans to redevelop the site, tearing down part of the block and adding one or more towers.

"We're not at that stage yet," he said. "We've got to meet with the city and the mayor's office. We've got to see what the right thing to do with this property is."

The possibility of a deal was first reported in today's edition of Boston Business Journal, which said the potential buyers had a meeting planned for this week with the Boston Redevelopment Authority. Adjmi said he has had no meeting with city officials and did not have one planned as yet.

"We have no comment," said Susan Elsbree, a spokeswoman for the Boston Redevelopment Authority.

Mayor Thomas M. Menino has said he would like to see a Target store in downtown Boston. This afternoon, Target spokeswoman Aimee Sands said, "We are very interested in downtown Boston. But at this time I can't confirm any specific sites."

Federated is selling the flagship Filene's store this year as part of its $17 billion merger with Filene's parent May Department Stores Co. The company decided to sell the building in Downtown Crossing because the site has too much space for its needs and would require expensive renovations to turn it into a Macy's location. The Macy's store located across Summer Street at Downtown Crossing will remain open.

The Cincinnati company is converting regional chains, including Filene's, into Macy's later this fall to position Macy's as a national department store. Link

[DarkFenX]

Filene?s building deal on Target: NYC pair close to a deal
By Scott Van Voorhis
Saturday, February 4, 2006

A pair of New York developers is in serious talks to buy the Downtown Crossing Filene?s building in a move that could revitalize the Hub landmark.

Big Apple real estate investor Alex Adjmi and business partner Robert Cayre are negotiating a deal to buy the building, Adjmi acknowledged yesterday.

The pair are also expected to try to cut a deal with discounter Target, which has publicly expressed an interest in a downtown Boston location.

The news comes as Federated Department Stores prepares to close Filene?s and sell the downtown building following its $16.5 billion acquisition of Filene?s parent May Department Stores last year.

Federated had been seeking a price north of $100 million and is reviewing a roughly $130 million offer from the New York developers, who are trying to finalize an agreement within the next several days, executives said.

The Boston Business Journal yesterday reported that the New York team plans to use Target as an anchor store, along with a mix of high-end retail and possibly housing on multiple levels.

Still, the deal is not done yet, with other bidders - both locally and out-of-state - waiting in the wings, real estate executives said.

New Jersey-based Gale Co., led locally by prominent Boston developer John Hynes, is ready to make another run at the property, noted Robert Maloney, senior vice president.

?We are not giving up on it, by any means,? Maloney said.

Whoever emerges with the property will likely embark on a larger redevelopment plan that would include both housing and retail.

Developers, including the Gale Co.?s Hynes, had explored putting a tower to the rear of the historic Filene?s building at the corner of Washington and Summer streets.

A number of other local players looked at or bid on the deal.

[DarkFenX]

Future at Filene?s looks up
By Scott Van Voorhis
Wednesday, February 8, 2006

Goodbye Filene?s. Hello megadevelopment.

A bidding war is still swirling around the historic downtown retail building, with a New York team trying to nail down the site amid competition from hometown developers.

But whoever lands the high-profile block will probably look to build big ? clearing a pair of newer structures behind the Filene?s site to make way for a Big Apple-sized project, according to real estate executives familiar with the deal.

That could mean as much as 2 million square feet of development ? enough to fill two Prudential Centers ? in the heart of the Downtown Crossing shopping district.

David Begelfer, head of the local chapter of the National Association of Industrial and Office Properties, sees significant building possibilities.

National retailer Federated Department Stores is now selling the Downtown Crossing block after acquiring Filene?s parent company. The retailer is pushing to close a deal soon and unload the valuable Hub real
estate.

?There is a lot of potential in that location,? Begelfer said. ?It is right in the heart of the city.?

At play is a city block, bounded by Washington, Summer, Hawley and Franklin streets, that could provide a platform for one of the biggest downtown projects in years.

Built in 1912, the historic Filene?s building covers 60 percent of the site.

But the remainder of the site ? occupied by structures with little historic value ? is large enough for some significant new development, executives say.

Developers who have looked at the block have considered plans for one or more residential high-rises in back of the Filene?s building, most likely in the 30- to 40-story range. Some scenarios even called for two high-rises, such as a centerpiece condo tower with a smaller office high-rise next to it.

The Filene?s building itself would be renovated and spiffed up to make room for Target, the likely tenant for a pair of floors no matter who lands the deal.

While developers tend to dream big, the 1 million to 2 million square feet in new residential, office and retail space some executives have eyed for the Filene?s block is also a reflection of big bucks the lucky winner will have to shell out to nail down the high-profile deal, executives say.

A Target deal alone would come nowhere close to paying the bills on the $130 million-plus that Federated is seeking.

?There is no question that any developer will want to maximize that site,? Begelfer said.

[DarkFenX]

Landmark status vote could scare off developers
By Scott Van Voorhis
Wednesday, February 8, 2006

Historic preservationists have targeted the Filene?s block for landmark status ? a move that could have a significant impact on budding plans for a major redevelopment of the high-profile site.

The Boston Landmarks Commission is studying whether to grant landmark status, not only to the 1912 Filene?s building, but to the entire city block that surrounds it, said executive director Ellen Lipsey.

The commission is expected to vote on landmark status this spring, she said.

The landmark status drive comes amid plans by Federated Department Stores to unload the Filene?s building after it acquires the store?s parent company.

While local developers agree the building should be preserved, the two modern structures attached to the rear of the building have been eyed for demolition by builders interested in the site. That would create room for one or more residential and office high-rises.

Lipsey stressed that landmark status would not preclude redevelopment of the site, but would require a special review by the commission. But landmark status might scare off some developers, who might think twice before attempting a major redevelopment, one executive said.

[DarkFenX]

Changes to Filene's will face hurdle
City likely to confer landmark protection on the entire block

By Thomas C. Palmer Jr., Globe Staff | February 8, 2006

With a sale of the historic Filene's building at Downtown Crossing in the works, redevelopment of the block will be complicated by its probable designation as a Boston landmark.

In light of the planned closing of Filene's department store, a 1986 petition to the Boston Landmarks Commission to declare the entire block between Summer and Franklin streets as a protected area has been dusted off and is on a fast track, the commission's executive director, Ellen J. Lipsey, said yesterday.

''We tend to do things when there's some urgency," Lipsey said. A historical analysis of the four buildings on the Filene's block, a public hearing on recommended protections, and formal designation as a Boston landmark could come in early spring.

City officials want at least part of the block protected. ''We think that there are two historically significant buildings on the site," said Susan Elsbree, a Boston Redevelopment Authority spokeswoman. She said she was referring to the oldest of the four structures that today are part of Filene's.

Possible landmark status and other uncertainties are holding up an agreement between a prospective buyer, C&A Capital LLC of New York, and the building's owner, Federated Department Stores Inc., said an executive involved in negotiations, who asked not to be identified because the deal is not completed.

An agreement to purchase could come as early as this week, he said, following months of negotiations.

Federated, the Cincinnati-based owner of Macy's department stores, last year merged with the parent company of Filene's and is closing that and other regional stores. Filene's in Boston is one of dozens of buildings that Federated put on the market last year.

Filene's Basement, owned by a separate company, has a long lease for the floors below street level, adding further difficulties to any plans for building, demolition, or remodeling.

The portion of Filene's considered most valuable is a 1912 main building at Washington and Summer streets that Boston residents who petitioned for landmark status called ''one of the best examples of early 20th century Monumental Beaux Arts commercial architecture in Boston."

At eight floors, it was the last commercial building designed by the nationally known Chicago architect Daniel H. Burnham. It is already listed on the National Register of Historic Places.

''The more significant something is, the less alterations would be looked at for that part of the property," Lipsey said.

Other buildings on the block opened in 1905, 1951, and 1973.

If the entire block, also bounded by Franklin and Hawley streets, is given landmark status, the new owners would need permission to make changes to the exterior or to demolish and undertake new construction.

But Lipsey said that doesn't mean major changes, such as a hotel or residential or office tower, are ruled out.

''There might be different guidelines for different parts," she said. ''It doesn't mean there cannot be new construction on top of what exists, or from the ground up."

Uncertainties such as restrictions based on historic status or the conditions of the buildings make it difficult to put a value on the real estate. Some bidders, including the two New York investors negotiating with Federated, offered a range of purchase prices, depending on what development is allowed.

Alex Adjmi, a partner in the team trying to buy the building, could not be reached for comment yesterday. It is not known how much the New York group has offered for the building, but one local real estate executive last week estimated it is worth about $130 million. Any complicating factors, such as historic status, which could draw out the development period and cause further expense for the new owners, would probably reduce its sale value.

Eighty buildings in Boston are designated as landmarks.

In addition, certain districts, such as Beacon Hill, are considered landmarks. Collectively, those eight historic districts contain about 7,700 buildings.

The Legislature created the Boston Landmarks Commission in 1975, after an outcry raised when a Victorian building housing the Jordan Marsh department store, a Filene's rival, was torn down. A modern building on the site houses Macy's.

[tocoto]

^^
Intransigent bureaucrats awaken after 20 years of inaction and see historic protection as immediate and all or nothing. Beautiful building never finds reuse and sits empty for decades. Landmark is eventually torn down after 50years of inaction. Seems like we've heard that story before.

[statler]

[statler]

Future at Filene?s looks up
By Scott Van Voorhis
Wednesday, February 8, 2006 - Updated: 07:53 AM EST

Goodbye Filene?s. Hello megadevelopment.
A bidding war is still swirling around the historic downtown retail building, with a New York team trying to nail down the site amid competition from hometown developers.
But whoever lands the high-profile block will probably look to build big ? clearing a pair of newer structures behind the Filene?s site to make way for a Big Apple-sized project, according to real estate executives familiar with the deal.
That could mean as much as 2 million square feet of development ? enough to fill two Prudential Centers ? in the heart of the Downtown Crossing shopping district.
David Begelfer, head of the local chapter of the National Association of Industrial and Office Properties, sees significant building possibilities.
National retailer Federated Department Stores is now selling the Downtown Crossing block after acquiring Filene?s parent company. The retailer is pushing to close a deal soon and unload the valuable Hub real estate.
?There is a lot of potential in that location,? Begelfer said. ?It is right in the heart of the city.?
At play is a city block, bounded by Washington, Summer, Hawley and Franklin streets, that could provide a platform for one of the biggest downtown projects in years.
Built in 1912, the historic Filene?s building covers 60 percent of the site.
But the remainder of the site ? occupied by structures with little historic value ? is large enough for some significant new development, executives say.
Developers who have looked at the block have considered plans for one or more residential high-rises in back of the Filene?s building, most likely in the 30- to 40-story range. Some scenarios even called for two high-rises, such as a centerpiece condo tower with a smaller office high-rise next to it.
The Filene?s building itself would be renovated and spiffed up to make room for Target, the likely tenant for a pair of floors no matter who lands the deal.
While developers tend to dream big, the 1 million to 2 million square feet in new residential, office and retail space some executives have eyed for the Filene?s block is also a reflection of big bucks the lucky winner will have to shell out to nail down the high-profile deal, executives say.
A Target deal alone would come nowhere close to paying the bills on the $130 million-plus that Federated is seeking.
?There is no question that any developer will want to maximize that site,? Begelfer said.
Link

[statler]

Landmark status vote could scare off developers
By Scott Van Voorhis
Wednesday, February 8, 2006

Historic preservationists have targeted the Filene?s block for landmark status ? a move that could have a significant impact on budding plans for a major redevelopment of the high-profile site.
The Boston Landmarks Commission is studying whether to grant landmark status, not only to the 1912 Filene?s building, but to the entire city block that surrounds it, said executive director Ellen Lipsey.
The commission is expected to vote on landmark status this spring, she said.
The landmark status drive comes amid plans by Federated Department Stores to unload the Filene?s building after it acquires the store?s parent company.
While local developers agree the building should be preserved, the two modern structures attached to the rear of the building have been eyed for demolition by builders interested in the site. That would create room for one or more residential and office high-rises.
Lipsey stressed that landmark status would not preclude redevelopment of the site, but would require a special review by the commission. But landmark status might scare off some developers, who might think twice before attempting a major redevelopment, one executive said.
Link

[shiz02130]

There's one of those home-made Herald renderings to go along with this article:

[statler]

So, it seems to me it will come down to two choices, which would you prefer?

A. An 'preserved' Filene's sits empty for a while till someone with deep enough pockets comes along to redevelop around the historic facade.

B. Joe' Auto Repair & Development Corp comes along razes the entire structure and builds some god-awful red brick/aluminum/fiberglass clad building on the site.

[Ron Newman]

I don't think the 1973 addition is old enough to fall under landmark protection, so I expect demolition of that will be quickly allowed. But it is important to ensure that the original building is redeveloped in a historically sensitive manner. And it's not going to sit entirely vacant, not while the Basement is still operating.

I am surprised to read that one of the 'annex' buildings is a few years older than the Filene's building.

[DarkFenX]

Filene?s site suitors must court Menino
By Scott Van Voorhis/ Dealmakers
Friday, February 10, 2006

Alex Adjmi and Robert Cayre may be from New York, but they have managed to put their hook in a very big Boston real estate deal ? the Filene?s building.

But in order to reel this whale in ? and close an agreement for the landmark retail block ? the pair may need to find their way to another local landmark: Boston City Hall.

A little advice for Adjmi and Cayre: Jump on the shuttle, take the train, grab a cab, whatever ? just beat a path to the fifth floor of that ugly old pile of concrete.

And make it fast.

Because Mayor Thomas M. Menino is waiting. And he doesn?t sound too happy.

?I am surprised they haven?t talked to the BRA (Boston Redevelopment Authority),? Menino said yesterday. ?The media knows more about their plans.?

Why should they care?

After all, they?re busy cutting deals around the country, a colleague argued yesterday.

Too busy to get on the phone with a reporter ? let alone meet with the mayor of Boston.

?We are not in the position to comment,? said an executive who works with Adjmi. ?The mayor can say whatever he wants.

?This is not the only thing we are doing,? the executive added. ?He (Adjmi) has been occupied on a number of projects.?

Well, it?s rather simple, really ? and all you need is grade-school math to figure it out.

Federated Department Stores wants upwards of $130 million for the 1912 Filene?s building and the block it sits on.

Nobody who knows better thinks the Filene?s building, the flagship of the struggling Downtown Crossing shopping district, is worth that by itself. After all, the building is for sale thanks to the impending demise of the beloved Filene?s chain, which Federated, the new owner, is pulling the plug on.

Instead, the bigger play is developing the rest of the site into enough high-priced condos, hotel rooms and offices to fill a Prudential Center or two.

That said, the New Yorkers may opt for a simpler plan. One that involves a less stratospheric purchase price, and a plan that calls for a more basic renovation and upgrade of the building, executives familiar with the talks said.

Either way, those two busy men from New York will need something that only the city bureaucracy that Menino controls can grant ? permits, permits and more permits.

You?d also better bet Menino is watching this landmark Boston site like a hawk.

?I think it would make a good hotel site,? Menino said. ?It is one of the best sites in the city.?

Right now, Adjmi and Cayre are the front-runners ? and they may be taking steps to strengthen their hand by adding Filene?s Basement to their team. With a long-term lease for part of the site, the Basement could make or break any renovation plan.

However, if Adjmi and Cayre manage to pull off this deal, they may rue the day they decided to let Menino cool his heels.
_____________________________________________________________
This looks like a serious proposal. Also, by the reaction of Thomas M. Menino, it doesn't look the landmark status, if one is input, can stop the site from developing. Good job Menino. Hopefully these New Yorkers can bring a true tall towers like the ones in New York.

[DarkFenX]

Nordstrom will help fill the vacuum left by Filene's
Upscale chain planning to occupy vacant stores in three suburban malls

By Jenn Abelson and Kathy McCabe, Globe Staff | February 16, 2006

Upscale department store Nordstrom will move into three Massachusetts malls, taking over spaces that Federated Department Stores Inc. is vacating as part of its acquisition of Filene's, according to local officials.

Nordstrom Inc., which grew from a Seattle shoe store into a nationwide chain, already is constructing one location in Natick and plans to open new stores in Burlington Mall in Burlington, Northshore Mall in Peabody, and South Shore Plaza in Braintree.

Nordstrom plans to stagger the openings of the new stores -- one every year, with the first one to open in Burlington Mall likely in 2007 -- according to local officials and real estate executives who did not want to be named because the deal is not yet public. Nordstrom did not return calls seeking comment yesterday.

The president of Simon Properties, which owns the malls where Nordstrom is planning to locate, is expected to discuss the deal at a press conference scheduled today at Burlington Mall, according to local officials. A Simon spokeswoman declined to comment.

This is the first major deal involving the future of the seven stores that Federated, the owner of Macy's, is closing in Massachusetts. Cincinnati-based Federated is shuttering locations where a Filene's and Macy's both exist, including the flagship Filene's in Downtown Crossing. Federated plans to sell off the seven locations and convert the remaining Filene's into Macy's by the fall as part of its $17 billion acquisition of Filene's parent May Department Stores. A Federated spokesman declined to comment.

Simon's agreement with Nordstrom comes several months after Federated signed a settlement with Massachusetts and four other states that requires the company to allow rivals, such as Nordstrom or Neiman Marcus, to fill its vacancies in malls if competing chains are interested and make reasonable offers.

Retail analysts say Nordstrom's plan to launch four stores within a relatively short period of time makes sense and will create a critical mass that can support broader, deeper advertising. The store already under construction at Natick Mall is expected to open in fall 2007. Nordstrom plans upgrades at the other three locations; details were not available yesterday.

Analysts say Nordstrom would have opened more sites in Massachusetts by now -- the closest is in Providence -- but good real estate is hard to come by. Federated's plan to close several department stores created an opportunity in an affluent market. Massachusetts residents have the second-highest disposable income in the country, trailing only Connecticut.

''It will make a major statement to Boston and the surrounding area that Nordstrom is here," said Madison Riley, a principal at Kurt Salmon Associates, a retail consulting firm.

Across the country, upscale stores like Nordstrom are doing brisk business, reflecting the strength of the economy and consumer confidence, Riley said. Nordstrom had a robust holiday season, reporting sales in December up 7.7 percent at stores open at least a year.

Founded in 1901, Nordstrom has 98 department stores across the country. The brand is known for a high level of customer service, plus upscale touches such as live music from a grand piano, exclusive brands such as Faconnable, spa services, and restaurants.

Nordstrom will provide Massachusetts customers with accessible luxury in between Macy's and high-end Neiman Marcus, said Darrell Rigby, head of Bain & Co.'s global retail practice in Boston.

''A lot of customers in Massachusetts would greet Nordstrom with open arms and open wallets," Rigby said. ''It will be good for consumers and other retailers because Nordstrom will whet consumers' appetite for luxury goods and quality services, and once customers acquire a taste for luxury, they don't like to trade down."

At Northshore Mall yesterday, shopper Estelle McOsker said she looks forward to Nordstrom's arrival.

''Nordstrom seems to be a little bit more high-end," McOsker said. ''That will be good here."

Analysts say Nordstrom's focus on the suburbs with its four new stores makes its interest in the Boston market unclear. The company has said it would like to open a store in the city, and one real estate developer has been trying to woo Nordstrom to the South Boston waterfront. While the chain will probably still look in Boston, Nordstrom might be less willing to pay a premium price for downtown property, Rigby said.

The only location Federated is getting rid of in Boston is Filene's flagship store in Downtown Crossing. That property is close to being sold to two New York investors who told the Globe they are talking to cheap chic Target Corp. about opening a store there, as well as planning residences and possibly a hotel.

[Ron Newman]

Wonder why Nordstrom doesn't want the downtown Filene's. A Nordstrom's would be much more in keeping with the site's history than a Target.