‘We can afford to wait’
Boston developer puts Union Trust Building sale on hold
A Boston developer has decided to hang on to the historic Union Trust Building in Downtown a little bit longer.
Two months after taking offers for the property, The Davis Companies has pulled the Grant Street gem from the market, in part because of uncertainty over the fate of a restaurant anchor.
Jonathan Davis, CEO and founder of The Davis Companies, confirmed Tuesday that the firm has decided to put the sale on hold. It did so after the Del Frisco’s Double Eagle Steak House wavered in its commitment to occupy a large block of space on the Fifth Avenue side of the building. The steakhouse was acquired by Houston-based Landry’s Inc. last year.
“We think we need to get that resolved first before we can fully realize the financial rewards for all that we accomplished there,” Mr. Davis said.
After investing $100 million to return the 103-year-old landmark to its former grandeur, The Davis Companies took offers Nov. 20 from parties interested in buying it. The firm had purchased the building for $14 million in 2014 at sheriff sale.
While Mr. Davis described the bids received as “solid,” they apparently did not meet expectations. He said the firm may have taken the real estate to market a bit early, with the uncertainty over Del Frisco’s further clouding the situation.
“If we got an offer that reflected full value, we would have sold it,” he acknowledged.
With a sale on hold, The Davis Companies will now try to secure an anchor for the Del Frisco space, whether that’s the steakhouse or something else, get a lobby bar open, and fill the last few office vacancies.
“We’re not in a rush. Most of the leases are long-term leases. We’ve been successful in getting a really solid group of tenants,” he said.
Since The Davis Companies acquired the building, it has boosted the office occupancy from 39% to 85% and leased virtually all of the street level retail space. Among the tenants it has landed is Buchanan Ingersoll & Rooney, one of the Pittsburgh region’s largest law firms.
The time frame for selling the building is now “uncertain,” Mr.
Davis said, though he stressed the firm is in no hurry to let it go.
“With the leasing we achieved, the property has a solid cash flow,” he said. “We can afford to wait.”
Mr. Davis said Del Frisco’s has signed a 15-year lease to occupy the space. As for its intentions, he referred questions to the chain. Del Frisco’s officials could not immediately be reached for comment.
“If we could find a replacement tenant, we would be very interested in putting them in there,” Mr. Davis said.
In seeking offers, The Davis Companies had not set an asking price for the Union Trust Building, which was erected by industrialist Henry Clay Frick and designed by famed architect Frederick J. Osterling.
As part of the rehab, the company restored the building’s opulence, from the brass, marble and terra cotta to the dazzling stain glass dome atop the central rotunda. It also added state-of-theart amenities such as fitness and conference centers and a 190space parking garage.