EDISON, N.J.—Mack-Cali Realty Corp.’s Roseland subsidiary recently commenced construction on Portside at Pier One, part of the planned mixed-use community on the East Boston waterfront. This 176-unit luxury apartment project is in joint venture with The Prudential Insurance Company and is supported by a construction loan commitment led by Citizens Bank with participation by Salem Five.
Portside will include 150 market-rate apartments and a 26-apartment affordable component in a five-story building adjacent to the pier. Mack-Cali anticipates project costs of approximately $67 million, with a projected initial stabilized unleveraged return on a pro forma basis of approximately 7.11 percent.
The December 2012 project start was a by-product of a 10-year Roseland-led effort since being awarded its development designation by the Massachusetts Port Authority. The land, owned by Massport, is subject to a 95-year non-subordinated ground lease. The overall site encompasses 26 acres of East Boston harbor frontage directly facing downtown Boston, and represents the most significant piece of undeveloped East Boston waterfront. The development was planned as a mixed-use waterfront community with luxury rental homes, condominium homes, retail and restaurant space, community/public space, a recreational marina, an operational shipyard, and public landscaped green space, thus creating a productive use and urbanization of the waterfront for the regentrifying East Boston community.
The residential and commercial portions of the overall development include approximately 566 luxury apartments and approximately 70,000 ground-floor sq. ft. for retail and public uses. The site is a two-minute walk to the newly renovated Maverick Blue Line T-station, which is a four-minute train ride to Boston's financial district. The site is also situated adjacent to the award-winning Pier's Park, a beautifully designed and landscaped 6.5-acre, $17 million municipally-funded public park. Phase II of Pier's Park renovations will include an additional four acres. The site is approximately 10 minutes from Boston's Logan Airport.
Community amenities are programmed to include a state-of-the-art fitness center, business center, theater room, controlled access garage parking, and 12-hour concierge services. Upon completion, Roseland will oversee the leasing and management responsibilities for the property.
"We are delighted to see this much anticipated project get underway,” Mitchell E. Hersh, president and CEO of Mack-Cali, said in a statement. “The extraordinary public and residential aspects of this community, including an expanded marina and shipyard, world class waterfront park, and magnificent views of the downtown Boston skyline, will all combine to energize the East Boston Waterfront."