An unassuming parking lot in Boston, Massachusetts has sold for an extraordinary $40 million.
Boston Globe reports that the lot at the corner of Newbury and Dartmouth streets was purchased by a Chicago investment firm. The land barely covers one-third of an acre and has been owned by a single family for more than a century.
The purchaser, L3 Capital, specializes in retail development and beat out a number of other bidders. According to those familiar with the bidding, L3 doesn’t plan on keeping this plot of land as a parking space for very long.
Instead, it is reported that the company will construct a large building on the site with street-level retail spaces as well as offices and condominiums above it. The lot sits in Back Bay’s high-end shopping district.
The site hadn’t always been a parking space as it was once the site of the Hotel Aubry apartments. However, the Gove family demolished the houses and since the late 1950s, the site has been home to a large parking lot.
L3 Capital’s specific plans for the site haven’t been announced but will need to be approved by the city and the Back Bay Architectural Commission before any work can commence.
Property in parts of Boston is booming and in August last year, a one-acre plot of land sold for $50.5 million.
According to senior director at real estate firm JLL Ben Sayles, the lot represents a blank canvas for the new owners.
“Newbury Street has emerged as one of Boston’s best locations for retail, office, and residential space. This site could ultimately be used for any of these.”