It looks like Southie is in for a serious transformation, as the real estate arm of heavyweight investment group Goldman Sachs bought a substantial stake along the district's waterfront area. The $23 million Archon Group deal will see the turnover of 6.2 acres of prime development land along E St. that is currently being occupied by a warehouse building leased out to shipping company DHL Express.
The acquired property sits right next to a parcel of land that is owned by the Massachusetts Convention Center Authority, set to be developed into a hotel complex where two yet-to-be-named hotels and a massive parking garage will soon rise. Alongside this project, construction and property management group Cresset Development also has an ongoing demolition of a warehouse building, making way for a $62 million apartment complex aimed for a 2014 delivery.
With these developments on the pipeline, it won't be long until Southie sees the same boom and gentrification the South End experienced in the early 1990s. This only complements the city's long-ago plans to transform the southern part of the metro area into a bustling center, catering not only to shipping and warehouse requirements, but also to house new industries and more importantly, residents that have long sought for living spaces in a city that is otherwise congested.
The entry of Goldman Sachs' Archon Group in the area is sure to make other investors realize the potential of South Boston as the next phase of the expansion of the "innovation districts" of Metro Boston. Additionally, the recent deals in the area has sparked talk of whether the MBTA should consider expanding transportation services into South Boston. Currently, accessibility to this part of the city is barely covered by the Silver and Red Lines.