The Government Center Garage has run into severe financial trouble, according to Tim McLaughlin at the Boston Business Journal. The existing office space has been without tenants since the Environmental Protection Agency moved out last year.
“The borrower on the so-called Government Center Garage recently asked to tap a reserve fund to meet monthly shortfalls, according to documents provided by loan servicers. Fitch Ratings, in a report this month, labeled the $190 million loan on One Congress as a “loan of concern,” citing the property’s crimped cash flow. The rating agency pegs the loan-to-value ratio at nearly 130 percent” (Read more: Congress Street complex hurting for cash – Boston Business Journal).
The site continues to be the subject of a redevelopment discussion with Thomas O’Brien’s HYM Investment Group recently taking management control of the property from the Raymond Company. Last year, Raymond failed to gain approval for a multi-tower office park that would replace the garage. (See IAG Throws Up Yellow Flag on the Government Center Garage Plan). At those Imact Advisory Group meetings, Raymond indicated the garage was profitable and leaving it “as-is” was a viable option.
The Boston Redevelopment Authority has presented various options as part of its Greenway District Planning Study and recently indicated that a series of towers up to 600’ high on the Bowker Street side could be approved. (See below – Click image to enlarge.)