archBOSTON ARCHIVE

[ckb]

[Mike]

GLOBE EDITORIAL
High above Filene's

February 21, 2006


FILENE'S IN downtown Boston is a sad place these days, with the ''30-50 percent off" signs throughout the store foretelling the demise of the renowned franchise. The store, when it closes, will leave a gaping hole in Downtown Crossing. But by blending preservation with high-rise development, the city can preserve the best part of the old store while encouraging the kind of concentrated growth that adds vitality to the urban core.

Developers are thinking of bidding on the centrally located block, which sits atop the MBTA Red and Orange lines, but some are concerned about the decision of the Landmarks Commission to consider a landmark designation for the entire site.

They shouldn't worry, as long as the Landmarks Commission selectively delineates what is worth saving among the four interconnected buildings that make up the block. The landmark designation should mandate preservation of the 1912 main building, at the corner of Washington and Summer streets, while leaving plenty of room for high-rise development on the site of the other three.

The main Filene's building was an important addition to the city from the day it opened on Sept. 3, 1912. About 235,000 people came to gawk and shop, the Globe reported a day later, and ''it seemed to the store employees that all New England was being poured in through the doors." The building, designed by Daniel J. Burnham, stands out for its functional yet elegant design, its terra cotta ornamentation, and its harkening to an era when the stores at the Washington and Summer street intersection dominated retailing in New England.

None of the other three buildings is particularly distinguished, although the facade of the 1905 office building (added to the store two decades later) is an asset to Franklin Street. The dull gray addition on Hawley Street was built for back-office purposes in 1951. It would not be missed. And the 1973 addition was an eyesore from the moment it went up. Its replacement would improve the look of Washington Street.

The dominance of the automobile and the rise of the suburban shopping mall require the city to provide other incentives to get people downtown. People who work in offices, live in downtown apartments, or stay over at hotels provide the foot traffic that keeps the city streets lively.

There's a nearby example of a combination of shopping facade and high-rise building. The old Kennedy's storefront was saved, when the 21-story 101 Arch St. was built in 1988. But the Burnham building is a much more significant structure and should be kept in its entirety. A better precedent might be the landmark designation of the Basilica of Our Lady of Perpetual Help complex on Mission Hill in Roxbury. Although the entire site was designated a landmark, the commission has allowed two buildings to be demolished to make way for residential construction, yet to be built. Old and new uses will be blended while the basilica, most significant and beautiful of the buildings, is preserved.

The Landmarks Commission will be holding hearings on Filene's in late March or early April. After that, it will be up to the Boston Redevelopment Authority to set the dimensions of the construction and encourage the leasing of the Burnham building to a new tenant, hopefully another retailer who will add variety to the shopping district.

One pleasant complication is the continued presence of the legendary Filene's Basement on four floors (two for storage) under the Filene's complex. The independently owned basement has a long-term lease on the space and is a powerful draw in its own right. The BRA needs to make sure that construction above does not disrupt this business.

Most of the old stores are gone from Downtown Crossing. Yet new uses will keep downtown fresh and appealing as the 100th anniversary of Burnham's grand emporium approaches.


Link

[statler]

[Ron Newman]

I think the Basement operates under all four of these bulidings. That's going to make redevelopment very interesting...

[statler]

Well, it looks like it's the end-of-days for Filene's. If anybody is interested they have removed a small section of drop ceiling at the corner entrance of Franklin & Hawley St. You can see some of the old ornamental ceiling. Nothing spectacular but if you are in the neighborhood and you're into that stuff it's worth poking your head in for a look.

[Ron Newman]

Any indication of what Basement access will look like once the main store closes?

[statler]

^^ Not that I can tell. I did see two guys walking along the Washington St side of the building stop at an odd set of doors, pull on them and say "We'll have to unlock these." But that could have been for anything.

[Ron Newman]

I'm guessing that the store will close within two weeks.

The fifth floor is closed. The fourth floor contains no merchandise -- just public restrooms, a temporary customer-service desk, and fixtures for sale. The remaining three floors are totally picked-over and remind me of Bradlees liquidation sale.

[statler]

^^ The folks holding the picket signs have small cards that say FINAL DAYS! So I'm guessing it will be closed by the end of this week.

[ablarc]

Down to just one department store, will Downtown survive as a shopping destination?

[Ron Newman]

Picket signs? Why is anyone picketing the store?

[Mike]

Filene's landmark status on fast track
Boston Business Journal - March 17, 2006
by Michelle Hillman
Journal Staff


Progress on the sale of the Filene's building in Downtown Crossing is moving at a snail's pace -- just slow enough for the Boston Landmarks Commission to gear up for a hearing aimed at protecting the historic building. A historic site designation could further complicate the development hopes of a New York team that is close to acquiring the parcel.

A petition first submitted in 1986 moved swiftly to the top of the pile at the Landmarks Commission since a sale agreement of the site at Summer and Washington streets by Federated Department Stores Inc. seemed near. Last month, a pair of New York investors confirmed they were in negotiations with Federated to buy the Filene's site for as much as $150 million.

Those talks have since quieted, with sources unsure whether the pair -- Alex Adjmi and Robert Cayre -- are still in the lead to buy the building, since Federated has been unresponsive. A person with knowledge of the negotiations said Federated is "swamped" with the closing or conversion of 79 stores nationwide. As of this week, a deal had not been negotiated, but the pair remains interested in buying the building, according to a source close to the deal.

In the meantime, the Commission is working on a report that will trigger the landmark-designation process and will detail the original Filene's building's architectural and cultural merit, said Susan Park, president of the Boston Preservation Alliance, which submitted the original petition under then-Executive Director Antonia Pollak.

Landmark status could add a new layer of bureaucracy to the permitting and development process in which the Landmarks Commission would have to review potential changes to the building exterior before a permit could be issued for work. The review powers would apply to any work on the facade of the building and generally would not include changes to the interior of the building.

The New York investors have told the Boston Business Journal they have talked to Target Brands Inc. about opening a Target store in the building. The site could also be the future home of a hotel, residential units and other high-end retail shops. The commission does not regulate the use.

"The best way to preserve a building is use it," said Pollak, who is now commissioner of the Boston Parks and Recreation Department. "I think this building lends itself well to adaptive reuse. I suspect there will be a way to find (a use) for some or all of these buildings."

Pollak said she's in favor of a combination of uses at the site, but said anything that adds to the vibrancy of Downtown Crossing would be beneficial.

The Filene's building is located within an area called the midtown cultural district, which is zoned for retail, hotel, commercial and residential uses. The area has emerged as a residential neighborhood as surrounding buildings are converted into residential uses. The growing presence of residential units in Downtown Crossing and nearby neighborhoods may also have an impact on development at the site.

Residents, business owners and advocates are paying close attention to the building. A four-year resident of Washington Street and a member of the Downtown Crossing Association, Mary Ann Ponti, said she'd welcome a mix of uses and maybe even a grocery store.

Development of the site is further complicated by the fact that Filene's Basement, owned separately by Retail Ventures Inc., will stay in the building on a long-term lease. Filene's Basement occupies two floors of space that underlies all four buildings.

Filene's, previously owned by May Department Stores Co., has begun clearance sales to prepare the store for closure. The site is one of nearly 80 stores nationally that are closing as a result of the merger between May and Federated, which owns Macy's and Bloomingdale's.

Already listed on the National Registry of Historic Places, the main building was built in 1912. While the 1986 petition was for the entire site, consisting of four interconnected buildings on a full city block, Park said the preservation group is less concerned with two of the three adjacent buildings -- which were built in the 1950s and 1970s behind the original store -- that are included in the petition. The fourth building on the site, at the corner of Franklin and Hawley streets, was built in 1905 and should also be considered for landmark status, Park said.

The landmarks commission ultimately will decide which, if any, of the four buildings could be designated as landmarks.

The commission's report will be made public on March 21, and a public hearing on the landmark designation will be held on April 11, said Ellen Lipsey, executive director of the commission. The commission, city council and mayor must all approve designation for the building to achieve official landmark status. Approval could come as early as this spring.



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[statler]

[Ron Newman]

[Matt]

[castevens]

They should move Macy's into Filenes and tear down Macy's

[Ron Newman]

Where's all this demand for jewelry coming from? Sam Goody Music closes and is replaced by a jeweler. Boston Globe Store (formerly Globe Corner Bookstore) closes and is replaced by a jeweler.

I'm totally in favor of the landmark-protection process for Filene's. It's the only way to ensure that the next tenant respects the building's historic fa?ade. I don't trust Target (for example) to do the right thing without such regulation.

[Ron Newman]

[Matt]

it's because macy's is now a smaller space, correct? I remember reading somewhere where that was the explanation.

[chumbolly]

[ablarc]

[PaulC]

didn't one of the Jeweler's building get converted to condos?

[DarkFenX]

Vornado warning: N.Y. firm targets Filene?s
By Scott Van Voorhis
Tuesday, March 21, 2006

A New York real estate giant is eyeing a deal for the historic Filene?s building in downtown Boston in a move that signals the high-profile property is still in play.

Vornado Real Estate Trust is in talks with Federated Department Stores about buying the elegant, turn-of-the-century building and the prime block of city land that it sits on, according to executives familiar with the talks.

The company has a long track record of both acquiring marquee retail properties and building large mixed-use developments. Vornado?s empire includes Chicago?s high-profile Merchandise Mart retail bazaar.

Spokesmen for Vornado and Federated both declined comment.

?They are big players,? said one real estate executive following the deal. ?They are a good group for Boston.?

A likely play for Vornado, should it gain control of the Filene?s building, would be to cut a deal with Target, which has been interested in a downtown location, real estate executives said.

A big box retailer like that would probably go into the Filene?s building, with the remainder of the site holding the potential for a large new development of one or two towers, the executives have said.

Vornado?s interest signals that Federated has yet to settle on a buyer, despite claims by another group of New York investors, led by Alex Adjmi, to have nailed the deal, executives said.

That group ran into trouble at City Hall after all but publicly announcing it had secured a deal - and detailing some plans -before discussing them with Mayor Thomas M. Menino.

By contrast, Vornado, one of the nation?s largest real estate companies, has earned a repuation locally over the last few years as a savvy and determined player.

The company has aggressively pushed to gain a foothold in Boston?s lucrative real estate market, buying a piece of East Boston?s Suffolk Downs racetrack and striking a tentative deal to invest in a new waterfront development.

[Ron Newman]

Does anyone know of any other multi-story Target stores? I'm trying to imagine how people are going to get shopping carts around a 6-story Target store.

[statler]

Starbucks meets Sharper Image
Source: Business 2.0

The selection at most cafes is predictable, but at the 1,200 Tchibo shops scattered throughout Europe, the barista serves up much more - like telescopes, cell phones, or cordless drills. Every Wednesday Germany-based Tchibo stores unveil a new collection of consumer products - a mix of 25 to 30 items grouped around a theme such as "World of the Senses" (think scented bath oils, yoga mats, and candles) or "Italy" (Parmesan graters and dishware). It's addicting...go in for a coffee and end up with household goods, go in for goods and stay for a cup of coffee. The real addicts visit the store every week to see what's new. I can totally see this taking off here.
Link

I'd like to see something like this in the Filene's building, although it's probably for smaller spaces and more likely for a Back Bay location.

[Ron Newman]

That would be perfect for one of the big empty spaces in Harvard Square.

[Roxxma]

[Roxxma]

[ablarc]

[Ron Newman]

Wordsworth Books, HMV Records, and the former Sage's grocery store. Also the Globe Corner Bookstore. All very prominently empty (unless one has been filled in the past few weeks). The resulting lack of foot traffic has hurt other busineses such as the Brattle Theatre.

[user_91]

[Ron Newman]

That sounds cool. But will shoppers be willing to visit the 5th and 6th floors this way?

[BlinkieOB]

I don't really think Target would try to occupy all 6 floors.

[ablarc]

[Matt]

Add to that the limited/express or whatever it's called.

I wouldn't say on the skids....but, there have been some meetings in the last few months to discuss the retail future. It's still very active and lively...suppose it always will be if for no other reason than the university.

Just not the harvard square of 10 years ago...let alone before that. But, you can comparatively shop between Bank of America, Sovereign and Citizen's banks all within a stone's throw of each other!! that's sad.

[statler]

Here are some photos. Sorry about the crappy quality. Bad photographer + bad camera + bad light = bad photos.

Corner of Franklin & Hawley St -such a handsome building:


Corner entrance:


I love public clocks:


The two more recent buildings on Hawley St - no loss to see them go:






The old closed Basement entrances on Hawley. Open again soon?:


I wonder what happened to the granite:


A Boston gem:




I'll miss the bells ringing durning the day:


Another clock:


Mystery doors on Washington St mentioned earlier:


In context:


The 1960's addition - I hope it's the first thing to go:


From my files from awhile ago:


Good bye:

[TC]

Never realized how out of place that polished granite is on the older building. I wonder what it looked like before filenes re-did the ground floor storefronts.

[ablarc]

[Ron Newman]

One of the articles above said that Filene's has occupied the Franklin-Hawley building since 1925. So how was it connected to the main store, before that awful 1950s annex was built?

[statler]

^^ I haven't been able to find any old pictures of the corner of Washington/Franklin. but in my search I found this cool old pic:

[statler]

This shows a lowrise in that coner ~1922 but, again, not too helpful.


Edit: Found it. I think.

[DarkFenX]

Filene?s site suitors left on rack
By Scott Van Voorhis
Thursday, March 23, 2006

A pair of New York investors were apparently a bit hasty when they touted a deal for downtown Boston?s historic Filene?s building.

Alex Adjmi and Robert Cayre just last month declared they were within days of inking a contract. But the two have since been knocked out of the competition - at least for now - for the high-profile Downtown Crossing retail shrine.

Instead, the investors and a bevy of other hopefuls have been eclipsed by national real estate titan Vornado Real Estate Trust, which is close to inking a contract for the graceful 1912 building and the prime city block it sits on.

Federated Department Stores, owner of Macy?s and other well-known retail chains, is selling thedepartment store complex as it pulls the plug on the beloved Filene?s chain.

If nothing else, the fade-out of the two New York investors, Adjmi and Cayre, is a cautionary tale about counting your money before a contract is signed, executives said.

?When you get some giants walking around, it?s not so easy to say, ?don?t worry about them, we?ll close this deal,? ? said David Begelfer, head of the local chapter of the National Association of Industrial and Office Properties.

Owner of Chicago?s Merchandise Mart and a nationwide real estate empire, Vornado is considered a good match to tackle the complicated Filene?s deal.

That deal will involve both renovating an historic building - now poised to receive ?landmark? status - and building a modern, high-rise project next to it.

And Vornado is also tight-lipped about its deals - another characteristic that may serve it well with Federated, which is notoriously press shy.

By contrast, Adjmi chose to go public with a claim that he and his New York investment group were within days of closing a deal for the coveted site.

That bit of showboating likely angered not just Federated, but another player with power over the deal - City Hall, insiders say.

Mayor Thomas M. Menino, who is keenly interested in the Filene?s site and its future - and who will ultimately oversee any redevelopment of the site - had not yet been briefed on the prospective deal.

The surprise, insiders said, was not well-received at City Hall.

Still, it is far too early to call it a game.

Adjmi and his group are eager to make another play if Vornado pulls out, executives said.

[Ron Newman]

I just returned from a walk through Filene's. It will close on April 29.

Only the first floor is still open, and not even all of that floor. There are no more shoes, towels, or sheets. It doesn't look like they still have anywhere near a month's worth of merchandise left, but they will bring merchandise here from other closing Filene's stores.

[statler]

[Ron Newman]

A week or two ago, I took the "Basement" elevators (at the corner of Hawley and Summer streets) to one of the top floors. Surprisingly it let me go there without an electronic pass key. When I got out of the elevator, I was staring at two large memorial plaques commemorating Filene's employees who had served in World War I and World War II.

[statler]

^^ That's cool. I wonder what will happen to those plaques.

[statler]

Prospective accord for Filene's site falls through
Developer Hynes says he's interested; bidder from N.Y. enters talks

By Thomas C. Palmer Jr., Globe Staff | April 1, 2006

Mayor Thomas M. Menino said yesterday a prospective deal between some New York investors and the owner of Filene's downtown to buy the building is dead.

But successful Boston developer John B. Hynes III said he's interested in doing a deal for it, or partnering with someone -- including the New York team Menino said is now out of the running.

New York investor Alex Adjmi said in February he and his partners hoped to wrap up a deal for the historic building quickly. Filene's is closing its doors, and its flagship building, along with others around the country, is being sold by Federated Department Stores Inc., which merged with the parent company of Filene's last year.

But negotiations have dragged on with no resolution. Another possible buyer of the Boston building, Vornado Realty Trust, also based in New York, is now in discussions, Menino said yesterday.

''Many developers are interested in the site," Menino said. ''Federated is going to make a decision in the very near future." A spokeswoman for Vornado declined to comment.

An executive involved in negotiations with Federated, who asked not to be identified because no deal has been signed, said Vornado had initially offered more money than the Adjmi team's current bid. But Vornado has an undisclosed period to examine the property and could reduce its offer.

Initially, some real estate executives said the property was worth more than $100 million. Both current offers are below that amount, the executive said.

Uncertainty over how much height City Hall would allow to be developed on the site, as well as how many buildings will be historically protected, have held bids down. The executive said environmental cleanup and working around a Filene's Basement store also could be costly.

Abbey Group, developers of Landmark Center in the Fenway, has expressed strong interest in the Filene's building. Menino said Millennium Partners Boston, which built the Ritz-Carlton Towers near Chinatown, also is a possible player.

Asked about the Adjmi team, which includes partners Robert Cayre and Isaac Gabbay and operates as Viking Asset Management, Menino said, ''I don't believe they're in the running anymore." Gabbay met with Boston Redevelopment Authority officials late last year, according to the executive involved in the negotiations.

However, Hynes, in Georgia this week for a conference, said in a telephone interview that he had spoken with the Viking team and felt there was mutual interest in working together on Filene's.

''We haven't got anything else going" in Boston, Hynes said -- although his company is also pursuing the city-owned Winthrop Square garage site. Menino recently raised eyebrows by tossing out the possibility of a 1,000-foot-high tower being built there.

Hynes said he is acquainted with the owners of Filene's Basement -- a company separate from Filene's that has a long lease on the lower floors of the Filene's building and whose presence City Hall wants to ensure. Filene's Basement's cooperation in any major renovation of the complex of structures, which occupy an entire city block, would be necessary.

Hynes said he had heard Vornado also was interested in the site and tried to contact executives there but had not yet spoken with anyone. ''They're a very capable group," said Hynes.

The real estate executive involved in the negotiations said Hynes also had met with BRA officials and discussed maintaining the historic part of the block, the Summer Street building designed by Daniel Burnham, while constructing a tower of 25 to 35 floors on part of the site.

Hynes, now president and chief executive of Gale International, based in New York, developed the One Lincoln Street building near Chinatown, now known as State Street Financial Center.

The building was fully leased to State Street in 2000, just before the leasing market crashed in Boston. It was built for about $350 million and sold for about twice that amount the year after it opened.

Thomas C. Palmer Jr. can be reached at tpalmer@globe.com.
Link

[statler]

N.Y. realty trust wins bidding for Filene's site
Vornado likely to pay about $90m for block

By Thomas C. Palmer Jr., Globe Staff | April 11, 2006

Federated Department Stores Inc. has chosen Vornado Realty Trust of New York to be the new owner and developer of the Downtown Crossing block occupied by the historic Filene's building, Mayor Thomas M. Menino said yesterday.

Menino yesterday issued a statement hailing the transaction, which involves ''a significant location in the city," and lauding the company, a real estate giant that owns Boston Design Center.

''It's a developer that is well-respected and understands the community and neighborhood process," Menino said, ''and particularly the challenge of doing a complex development such as this."

A Federated spokesman had no comment yesterday, and Vornado's policy is not to speak to the news media. But representatives of both companies were scheduled to meet with officials of the Boston Landmarks Commission this morning, a City Hall official said.

Since the Filene's building was put on the market last year by Federated, which merged with the former owner of Filene's, May Department Stores Co., the commission has been considering landmark status for the block along Washington Street between Summer and Franklin streets, occupied by four buildings of various ages.

An executive from another team of New York-based bidders for the Filene's building confirmed yesterday that it is out of the running. The executive said Federated has told his development team, lead by businessman and investor Alex Adjmi, that it has a deal or is near one with another developer.

The executive asked not to be identified because there could be an opportunity to bid again if a deal between Federated and Vornado is not made final.

Filene's will vacate the building soon, when that brand is phased out. Federated will continue to operate the Macy's store across Summer Street. Macy's occupies the old Jordan Marsh building.

The Filene's building is partially occupied by and is expected to continue to house Filene's Basement, which is owned by a separate company. Filene's Basement has a long lease.

Neither Federated nor Vornado has said anything publicly, but others in the real estate industry who have watched the marketing of the full-block complex of buildings said late last week that it appeared a deal had been struck.

The sale price is expected to be about $90 million, according to the executive.

The Adjmi team initially bid more, but reduced its offer after weeks of investigation into the condition of the site, as well as having explored the possibilities for redeveloping the site.

Some developers have envisioned a hotel or condominiums in a tower, perhaps 35 floors high, with a retail store such as Target on the renovated floors of the historic Filene's building, which dates from 1912 and is listed on the National Register of Historic Places.

The Filene's complex has four buildings, including the historic Summer Street structure designed by the well-known Chicago architect Daniel Burnham, and three others of lesser importance. But landmark status for the entire block could complicate the redevelopment, including construction of a tower.

Filene's Basement also must be accommodated, during construction and in the long run.

And environmental conditions in the buildings and uncertainty about how much height City Hall will allow on the block complicate the picture -- making it difficult to determine a fair price for it.

Vornado, a publicly owned real estate investment trust, owns or manages, sometimes in partnerships, more than 100 million square feet of property, including 21 buildings in New York City. It owns Merchandise Mart and Apparel Center in Chicago and last year purchased the Design Center in Boston for about $96 million. It also owns Charles E. Smith Commercial Realty LP in the Washington, D.C., area.

Vornado, a retail company that in 1981 became a real estate business, is traded on the New York Stock Exchange.

In February, Adjmi had said that he and his partners hoped to wrap up a deal for the building quickly. But, according to the executive involved in that negotiation, City Hall officials were angered that news of that deal appeared in the press before the Adjmi team had officially informed them that it wanted the building.

The executive said a member of the Adjmi team -- though not Adjmi himself -- had met with Boston Redevelopment Authority officials last fall.

Last month, Menino said the prospective deal between Federated and the Adjmi team was dead.

Boston developer John B. Hynes III, who had initial discussions with the Adjmi team about joining forces, said last week that he would be interested in working with Vornado, as well. Hynes said he had not discussed such a partnership, though he considered Vornado capable of pulling off a complex project.

Hynes could not be reached for comment yesterday. Asked about Vornado last week, he said, ''They're a very capable group."

The Adjmi team included partners Robert Cayre and Isaac Gabbay. The same individuals were involved in the purchase of One Faneuil Hall Square, the former Abercrombie & Fitch building, last year, the executive said.

Thomas C. Palmer Jr. can be reached at tpalmer@globe.com.
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[statler]

Close to historic deal: Filene?s landmark vote may be key for Vornado
By Scott Van Voorhis
Tuesday, April 11, 2006 - Updated: 12:07 AM EST

A major New York developer is wrapping up a deal for downtown Boston?s landmark Filene?s building, with a key meeting expected today at City Hall.
Representatives of Vornado Realty Trust, which is buying the building, along with seller Federated Department Stores, will meet with city officials to discuss a proposal to grant historic landmark status to the turn-of-the-century building and the Downtown Crossing block it sits on, city officials confirmed.
Vornado and Federated, in turn, may ask for a postponement on the landmark decision, which some contend could complicate any future redevelopment of the building. One likely play: renovating the historic Filene?s building while building one or more high-rises next door where two modern additions now stand.
However, today?s meeting, if nothing else, is a signal that Vornado has emerged victorious from the bidding war for the building, which featured competition from several heavy-hitter builders.
Vornado has tied up the building with a purchase and sale agreement, said one local real executive familar with the negotiations.
A spokeswoman for Vornado declined to comment.
?When we have an announcement to make, we will make one,? said Jim Sluzewski, a spokesman for Federated. ?Other than that, we are not going to comment.?
The meeting comes with a City Hall hearing scheduled tonight on the Filene?s landmark proposal.
While official historic status would not preclude the redevelopment of part of the Filene?s site, it would add another layer of government oversight and approvals.
Once a deal is in hand, Vornado is expected to reach out to Target, which has been seeking a Boston presence, while also exploring opportunities for additional development on the site, real estate executives have said.
Vornado already controls a nationwide real estate empire, including Chicago?s famed Merchandise Mart, a roster of office towers and major retail shopping centers around the country.
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[PaulC]