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Boston Seaport Revitalizes as Divco Buys 4 Buildings

Boston’s commercial real estate industry is going through a new boom. The Seaport District is certainly benefiting from this boom, as The Wall Street Journal reports that the revitalization of the Seaport District is starting to take shape.

According to the WSJ, Divco Real Estate Services LLC recently purchased four buildings in the Seaport District, for a total of $107 million. That’s a huge investment and no doubt will contribute to the gentrification of the area. The buildings include a former wool warehouse from the 1800s, a remnant of Boston’s textile days.

What’s especially promising is that the price tag on the recent purchase by Divco is 17% more than what the last buyer paid for the same building at the peak of the housing bubble.

The are, once largely industrial, will soon house offices. Already, there have been 360,000 square feet of office space added to the area.

The result of the gentrification and revitalization of the Seaport District is higher rents, according to the WSJ.

But moving back to the changing use of the area and its newfound commercial use, the area began changing slowly, as many artists and startups began setting up shop there. Eventually, larger developers came on board, resulting in the changing use of the area.

While the story of the Seaport District is one in which the city council, large developers and businesses come together on, changing use of buildings isn't a process that comes easily. With property once being industrial, numerous permits and authorizations need to be done to make a plot of land suitable for use. Property is zoned by the city and zoning ordinances determine what kind of property can be erected in a given district.

So the process of gentrifying the Seaport District has been a project years in the making.

And given the results, it's a promising project.

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