The much-prized Concord site led Boston Properties to want to build a quality 148,000/SF office development using
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The much-prized Concord site led Boston Properties to want to build a quality 148,000/SF office development using quality building materials and quality architecture. It would not come cheaply. Estimated costs, including land, were $25 million in 1984, or over $169/SF, which at $23.50/SF rents gross, less $1.00 for vacancy and reserves and $5.50 in operating costs and real estate taxes, would yield $17.00/SF or 10.0% on costs. The costs traditionally could be financed with a conventional loan of 80% -- requiring 20% equity including the value of the land. At market at a 9% capitalization rate, the value was estimated to be about $189/SF or $28 million.
- Vacancy Rate: 10%
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