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Kneeland Street condo tower on hold until loan interest rates come down

Rendering of proposed 22-story condo builidng on Kneeland Street in Chinatown

The view from Atlantic Avenue, by RODE Architects.

The Zoning Board of Appeal this week gave Hudson Group another year to begin construction of its planned 22-story, 115-unit condo building at 150 Kneeland St. near South Station.

The delay means a holdup in plans for an apartment building on Oxford Street in Chinatown to which Hudson Group had pledged between $5 million and $7 million for construction of 20 apartments aimed at people making no more than 30% to 50% of the Boston area median income.

At a hearing earlier this week, Hudson Group's attorney, Don Wiest, cited an increase in the cost of financing for the reason it hadn't started work on the project since its approval by the BPDA and the zoning board in 2021.

"The challenge for this kind of high-rise project on a small floorplate is that it's inherently expensive on a per-foot basis," he said. "Money has gotten very expensive for construction loans throughout the course of the past year, and we need those conditions to improve for the numbers to come into alignment."

The board vote extends the deadline for its approval from March 11 of this year to March 11 of next year.

The building will replace what's left of a long closed nightclub - Hudson Group says it has, at least cleaned up the remains of that. Back in 2018, Hudson Group proposed a 230-room hotel on the site, but the pandemic killed that idea and the company filed new plans in 2021 for a similarly sized residential building.

In addition to condos, the new building will have ground-floor commercial space. It will have no parking spaces.

150 Kneeland St. filings.

Watch the hearing:

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Comments

Looks like a great project. Zero parking spaces is just an added bonus. Hopefully they figure out financing soon.

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Voting closed 1

How many extensions are they allowed before the City says, HEY!! FINISH YOU'RE ABANDONED SHIT! THE STATUES ARE NOT HAPPY!!!!

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This development doesn’t have enough parking.

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I've come around to the argument that requiring units to be rented or sold below market only raises the overall market price in the area and limits additional housing. If the developers would have financing for this project without the affordable requirements, it would be preferable to get these units built now instead of waiting another few years or longer.

Making it cheaper and easier for housing to be built is the only way to actually increase supply.

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Voting closed 1

This logic may not apply to this type of project. These condos are going to be marketed at over $1million a piece and the Boston area doesn't have a shortage of housing in the 7-figure price range.

Dropping the affordabitlity requirement may get them built sooner but I doubt that they would be sold at a much lower price.

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The millionaires are going to buy housing one way or another. Better encourage them to go new construction instead of outbidding someone with a bit less cash for an existing unit elsewhere. If these units got built today and sat empty (unlikely), how would that be any different from them just not being built?

Trying to mandate lower prices just raises the overall market price.

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Voting closed 3

Not just on interest rates (pricing)but on loan structure.

I can see this never seeing the light of day as currently situated.

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