Banker & Tradesman April 11, 2016

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the

www.bankerandtradesman.com

WEEK OF MONDAY, APRIL 11, 2016

financial

services

and

real

estate

weekly

for

massachusetts

A Publication of The Warren Group A CYBERSECURITY DIRECTIVE FAST TRACK

Cybersecurity Moves To The Top Of Board Agendas

Boston’s Transit

TOWER BOOM

Not Just IT’s Problem: Cyberattack An Enterprise-Wide Risk

How Many Will Leave The Station? SOUTH STATION AIR RIGHTS TOWER Developer: Hines 49 stories, 970,000 square feet Status: Approved

BY STEVE ADAMS | BANKER & TRADESMAN STAFF

T

hey are striking architectural renderings on websites putting gleams in developers’ eyes, but whether they ever get built depends upon how long Boston can sustain its economic surge. Three office towers totaling 113 stories and nearly 2.5 million square feet, already bearing the Boston Redevelopment Authority’s stamp of approval, are to be built near the MBTA’s Haymarket, North and South stations. The transit tower trend ratchets up with Boston Properties’ latest vision of a 1.3-million-square-foot development at Back Bay station, including a 26story office tower. And the BRA is getting into the high-rise act as it seeks an “iconic” redevelopment up to 700 feet for its defunct Financial District garage at 115 Federal St. The latest speculation swirls around Houston-based Hines Interests LP’s timing for the start of its 49-story, 970,000-square-foot office tower at South Station. The Pelli Clarke Pellidesigned structure is the first phase of a larger 1.9-million-square-foot mixed-use project that has been in the planning stages since 1977. Hines now wants to begin the tower construction in 2017, but has notified the BRA that it wants to reduce the office component and add housing, BRA spokesman Nicholas Martin said. It’s expected to submit a notice of project change this month, and seeking to certify a new equity partner, Martin said. Hines’ designation as the site developer expires in April 2017, MassDOT spokesman Jason Johnson said. The aggressive scope of the tower projects represents a long-range vote of confidence in a commercial real estate

BACK BAY/SOUTH END GATEWAY OFFICE TOWER Developer: Boston Properties 26 stories, 575,000 square feet Status: Proposed

BY LAURA ALIX BANKER & TRADESMAN STAFF

A

s cybersecurity moves to the forefront in the realm of risk management and regulatory compliance, boards of directors must be more engaged than ever in overseeing all things cybersecurity. Board oversight of cybersecurity is so important, in fact, that it was one of the headlining topics presented at a recent Federal Reserve Bank of Boston conference centered around cybersecurity. No longer can the board simply rubberstamp a bank’s cybersecurity practices. Directors must be actively involved in a way they never before have been. “The issue has really been accelerating on the board agenda because of the number of data breaches, the reliance on digital assets and information and the interconnectedness of the system. Today a cyberattack could present an existential threat to the organization, so it’s really Continued on Page 9 COMMERCIAL INTERESTS

A Symptom, Not A Solution THE HUB ON CAUSEWAY (NORTH STATION REDEVELOPMENT) Developer: Boston Properties and Delaware North Cos. Phase One: 175,000 square feet Phase Two: 21 stories, 525,000 square feet Status: Approved

Continued on Page 10

ONE CONGRESS (GOVERNMENT CENTER GARAGE) OFFICE TOWER Developer: Hines 49 stories, 970,000 square feet Status: Approved

CONTENTS

In Person ������������������������������������������������������������������ 7

Commercial & Industrial ���������������������������������������� 10

Points ����������������������������������������������������������������������� 4

Residential �������������������������������������������������������������� 8

Classified Sections ������������������������������������������������� 12

By The Numbers ������������������������������������������������������� 6

Banking & Lending �������������������������������������������������� 9

Records Section ������������������������������������������������������ B1

Joyce’s Alleged Kickback Highlights Housing Issues BY SCOTT VAN VOORHIS BANKER & TRADESMAN COLUMNIST

T

he latest unfortunate reports about Sen. Brian Joyce’s alleged extracurricular activities point to the completely rotten way we vet new housing proposals here in the Bay State. Joyce is now under investigation by federal prosecutors and the FBI for allegedly pocketing a $250,000 fee for his law firm from a developer looking to build a mix of affordable and marketrate apartments in his senate district in Randolph. Joyce first backed neighbors fighting plans by a developer to build 250 apartments an adjacent industrial park, only to later switch sides and help push the project through after his firm got its Continued on Page 3


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