East Boston and Revere, Mass. — The HYM Investment Group LLC, a mixed-use developer based in Boston, has purchased Suffolk Downs, a 161-acre horse racetrack located in East Boston and Revere.
Sterling Suffolk Racecourse LLC sold the asset in a sale-leaseback transaction to HYM’s affiliate, The McClellan Highway Development Co. LLC, for $155 million. The under-utilized horse racing facility will officially close after the summer of 2018, according to HYM. The Boston Globe reports that the racetrack is only planning on hosting six live races this season.
HYM plans to redevelop Suffolk Downs into a transit-oriented, mixed-use project, including office, retail, housing and open space. HYM expects to develop street-level retail and housing in the redevelopment’s first phase. No timeline for construction was given.
“In our dozens of preliminary meetings with elected officials and local community stakeholders in Revere and East Boston recently, we consistently heard that local residents want retail, restaurants and new job opportunities. This development will provide all, while also setting aside a significant amount of the site for open space and providing better connections to the neighborhood,” says Thomas O’Brien, founding partner and managing director of HYM Investment Group. “We are looking forward to engaging the communities of both Revere and East Boston as we move forward with this transformative opportunity.”
The site is situated adjacent to the Suffolk Downs and Beachmont MBTA Blue Line train stations, and is two stops from Logan Airport and a few stops from downtown Boston. HYM Investment Group has several other projects in the works in the greater Boston area, including the $2 billion Bulfinch Crossing in downtown Boston.
At full build-out, the 2.9 million-square-foot project will span more than 800 residential units, 200 hotel rooms, 1.2 million square feet of office space and 82,500 square feet of retail space.
Bryan Connolly, Geoff Howell, Bruce Barnett and Paul Evans of Boston-based law firm DLA Piper represented Sterling Suffolk Racecourse in the sale and leaseback. Richard Rudman, Brian Hochleutner, Donovan Lloyd Powell and Robert Lennon of DLA Piper also advised the buyer in the transaction and will continue to advise on the future mixed-use development on the site. DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa and Asia Pacific.
— John Nelson