Picture Cloudy For Polaroid Site
The status of a 1.7 million-square-foot residential and office project at Polaroid Corp.'s old headquarters in Waltham is up in the air as the property heads for a foreclosure auction on Oct. 9.
Related Cos. of New York, which partially controls the 119-acre property through a joint venture with Polaroid, had been planning a $500 million project known as The Commons at Prospect Hill. But now the German bank Helaba, which holds a $70 million first mortgage on the property, is foreclosing on it.
Already, plans for The Commons, which would include family restaurants, stores and office space, are before the City of Waltham, and parts of the old Polaroid facility have been razed. In a prepared statement, Related said that it is looking into the issues involved in the property but that the company does not comment on financial matters.
Holding Pattern
Chip Batchelder, managing director at Wyman Street Advisors in Waltham, has followed Related's efforts and says he doesn't see it moving forward any time soon.
"The project could never get built in this economy," he said.
With the market for retail and office properties in the doldrums, he said, rents wouldn't be enough to justify the construction costs.
Batchelder said he doesn't expect a new buyer to step forward and pay enough to get Helaba to relinquish the property.
"My guess is these guys will take it back and just try to figure it out down the road," he said.
Paul Saperstein, the auctioneer handling the property, said he's seeing interest from potential buyers but doesn't know how much they are likely to offer. He said he's also not sure what Helaba would pay to hold on to the property.
"They're going to bid," he said. "What they're going to bid I don't know."
John Peacock, executive director of the Waltham West Suburban Chamber of Commerce, said he isn't sure where the project stands but would like to see it move forward. He said the development would bring jobs to the region, along with almost $40 million in infrastructure improvements that Related has promised as part of the project. In general, he said, officials in Waltham also seem well disposed toward The Commons.
"With all the work they've put into it so far, and the relationship building they've done over the years, it would be a shame for it not to go forward," Peacock said.
Batchelder said he'd call the situation a case of "good project, bad timing." He said Related is a well-respected company that does good work.
"They're great developers," he said. "They just got caught in the down market."
WBJ Web Partners
Most Recent
Most Recent
0 Comments