Hines, Gemdale Partner to Redevelop Boston's South Station

Global real estate firm Hines announced that it has partnered with Gemdale Properties, one of the largest builders in China, to redevelop Boston's South Station with a 677-foot condo and office building at the city's busiest train station. Hines originally secured approval for the development of a three-phase, 1.8 million-square-foot mixed-use air-rights project at South Station in 2006, but the project was delayed after the market fell and its partner, Tufts University, exited the project in 2009. Hines has been meeting with MassDOT and the Boston Redevelopment Authority in recent weeks to hash out details of the new partnership plan, as a new equity partner requires approval from the city because the air rights above South Station are jointly owned by the city and state, and a financial analysis is required for any city-owned development site, according to the BRA.

"Boston is experiencing a remarkable economic and physical transformation," said Hines Founder and Chairman Gerald Hines. "Hines and Gemdale PI will make a significant investment in upgrading and expanding Boston's transportation infrastructure at the regional transit hub. The project will also result in the creation of a world-class, architecturally significant, mixed-use community. We are thrilled and honored to participate in this critical public/private partnership with the MBTA to complete the redevelopment of the Dukakis Transportation Center."

The redevelopment of the South Station Transportation Center, now known as the Michael S. Dukakis Transportation Center, includes a 26-floor tower starting nine stories above the ground, 530 parking spaces, and the expansion of the South Station bus terminal. The building will feature state-of-the-art commercial office space with the top 16 floors reserved for residential condominium units with panoramic views of the city and Boston Harbor.

Hines Senior Managing Director and longtime head of the firm's Boston office David Perry said, "The visibility of this corner location and the scale and dramatic styling of the tower, combined with the dignity of the station façade at its base, will serve to establish the project's identity as the most prominent building in downtown Boston and reinforce the site's strategic location at the intersection of Boston's Seaport and Financial Districts."

"Gemdale Corporation, a PRC company listed on the Shanghai Stock Exchange and the controlling shareholder of Gemdale PI, brings outstanding real estate development experience and community service to our joint venture in Boston. Together with Hines, and various governmental bodies with interests in South Station, we are committed to develop an outstanding project that Gemdale, Hines and the City of Boston will all be very proud of," added Jason Zhu, Chairman and CEO of Gemdale USA Corporation.

For more news and information visit Blumberg Partners.

China's Gemdale Enters LA Market with $125M Mixed-Use Project

Gemdale Properties and Investments, a subsidiary of one of China’s largest blue chip real estate developers, Gemdale Corporation, announced that it is partnering with Los Angeles-based LaTerra Development to develop a $125 million mixed-use project in Hollywood. The project will be the first real state investment in Hollywood by a major Chinese company, which established its US headquarters in Los Angeles earlier this year. The Gemdale-LaTerra project at 1350 N. Western Avenue at Sunset Boulevard is planned to be developed with office, retail and apartments, explained Charles Tourtellotte, President and CEO of LaTerra. Curtis Palmer of CBRE was the broker on this transaction.

Jason Zhu, CEO of Gemdale USA, said: "This inaugural Los Angeles investment promises to be the first of many deals as we ramp up our capital investment and property development business in Los Angeles, a market that we are confident presents great value. There is abundant opportunity here and we are delighted to have partnered with LaTerra, the like-minded urban development partner we have been seeking."

"Both LaTerra and Gemdale are committed to topflight design, amenities and sustainable building practices," added Tourtellotte. "With our partner, Gemdale, we will be developing a project that will have a positive fiscal impact on the community."

Gemdale's announcement of its project is the first since the recent slowdown in the Chinese economy and dramatic losses on the country's stock exchange prompted worries that the tidal wave of Chinese investment in Los Angeles might come to a halt, according to a Los Angeles Times article. Simone Liu of Wells Fargo Advisors in Beverly Hills, who gives investment advice to Chinese clients, said the opposite dynamic appears to be in play. "After what happened in China, people are looking for ways to diversify their portfolios," she said "They feel like the U.S. is more transparent and there are more opportunities in the real estate market here."

For more news and information visit Blumberg Partners.