Chan High Bidder for Boston Globe HQ But Henry Holding UP Deal

BOSTON—A dynamic force in metropolitan CRE circles is rumored to have made the highest bid for the Boston Globe headquarters in Dorchester, but now it appears seller John Henry is holding up an exchange of the prized asset. The 16.5-acre site at 135 William T. Morrissey Blvd. is being marketed through Colliers International for the second time after a prior bidder backed out of an agreed-upon deal.

“It’s him for sure,” one CRE veteran insists of Dr. Chan triumphing on price against several other firms chasing the asset this time around. A Harvard University alum and founder of Newton-based investment and research firm Morningside Technology, Dr. Chan burst on the CRE scene in Dec. 2012 when he acquired a large Harvard Square commercial property for $31 million and followed it up a few months later with the $33.1 million purchase of 39 JFK Street in that iconic urban district. Those conquests which Boston Realty Advisors orchestrated for their respective sellers were first unveiled by Real Reporter in the early stages of a Dr. Chan spending spree that has since expanded to Boston and surrounding communities including Arlington, Brookline, Somerville and Wellesley.

Officials at Colliers International declined comment on the Morrissey Boulevard listing when contacted earlier today, but others maintain Dr. Chan emerged as the winning suitor over the summer and claim if a deal is consummated he would again pay in the range of $70 million, said to be the price level offered when Winstanley Enterprises of Concord was tabbed to buy the property last autumn in a partnership with USAA Realty Advisors when the asset was first pitched for sale and drew a lineup of experienced investors during a highly publicized process. That pact was quashed this winter when Winstanley’s capital partner backed out for reasons never fully explained, prompting the second round of bidding which was launched this spring.

Just what Dr. Chan has in mind for the landmark property is unclear. Interestingly, his operation has already made a foray into Dorchester, having in May paid $5.25 million for a 37,500-sf industrial site at 9 Dewar St. That three-building asset near the Savin Hill MBTA stop is also considered an opportunity for redevelopment, although its new owner has not unveiled any specific plans there as well.

Sources maintain that Henry has met privately with Dr. Chan at least once to discuss a pact for the Boston Globe HQ, but has since been trying to determine whether he would rather retain control and orchestrate an overhaul of the facility. “Yes,” one source responds when asked whether that scenario has kept the talks in limbo. The situation caught others off guard, including one observer spoken to who notes its owner paid roughly the same amount for the newspaper (once valued in excess of $1 billion) as he would reportedly reap in the real estate harvesting. “That’s like getting the Globe for free,” the industry professional calculates.

The lingering situation is creating other speculation about the property, including whether Henry might agree to join forces with another developer—perhaps Dr. Chan—and keep a stake in the project that way, and the delay also has raised questions about the future of the stated plans to relocate his newspaper from its longtime home as part of any trade, a process that has been underway during the marketing program and still appears to be active. Henry already acquired a suburban industrial building to relocate the newspaper’s printing operations