Real-estate development company Related Beal has acquired of 6.5 acres of waterfront property immediately adjacent to the General Electric Co. headquarters campus from The Procter & Gamble Co., the companies have confirmed to the Business Journal.
Gillette parent company P&G and Related Beal did not confirm a purchase price, but a source with knowledge of the transaction said the price could reach $218 million.
“Related Beal and Gillette share a proud history in Boston, and a commitment to giving back to this community,” said Bruce Beal Jr., president of Related Cos., in a statement. “We are fortunate to join Gillette in Fort Point and look forward to building on the legacy of a Boston institution as we help to shape a strong and vibrant city.”
Boston-based Related Beal’s purchase comes days after General Electric Co. sold its 2.7-acre headquarter campus at 5 and 15 Necco St. to Alexandria Real Estate Equities(NYSE: ARE) and National Development for $252 million.
Combined, the P&G (NYSE: PG) and GE (NYSE: GE) sites could host around 1.3 million square feet of development, if not more. Alexandria and National Development have approvals to develop a 297,000-square-foot property at the GE site, and intend to pursue a life-sciences project there. The firms also have acquired a parking garage at 10 Necco St. for $81 million and could pursue development there as well.
Related Beal, meanwhile, could develop more than 1 million square feet on the P&G site at 244-284 A St., based on guidelines established by the Fort Point 100 Acres Master Plan. Marketing materials for the site, viewed last year by the Business Journal, showcase a five-building conceptual site plan with a total footprint of 1.09 million square feet. The five buildings could range in height from 110 feet to 180 feet, and between eight and 17 stories, and range in size from 124,584 square feet to 353,485 square feet, the materials said.
It’s not immediately clear what Related Beal intends to develop on the site.
"We are excited to start conversations with the community about the future of this parcel and a plan that enhances Boston,” said Kimberly Sherman Stamler, president of
Related Beal, in a statement. “We believe this site offers a tremendous opportunity to create a diverse, mixed-use development close to public transit hubs, add to the environmental resiliency of Fort Point, and expand public waterfront access.”
Gillette, which P&G acquired in 2005, had kept close hold of its sprawling 40-acre South Boston industrial campus for more than a century. However, the successful sale of two South Boston parcels last year — a 30,000-square-foot building and a quarter-acre parking lot for a combined $11.5 million — prompted the Cincinnati-based consumer goods giant to consider selling additional property, a company spokesperson told the Business Journal last year.
“We are pleased to welcome Related Beal to the neighborhood,” said Gary Coombe, CEO of P&G Global Grooming Business. “Related Beal is a seasoned developer, known for their thoughtful, community-oriented approach that has helped create some of the most recognized buildings in Boston. Their vision and experience will undoubtedly strengthen our vibrant and innovative community in South Boston.”
The local capital markets team from real-estate brokerage JLL marketed the 6.5-acre waterfront site for sale.
Representatives from Alexandria, P&G and JLL were not immediately available Tuesday afternoon.