QUINCY – The city’s downtown redevelopment project has been on hold for the past year, but the lack of construction hasn’t cooled off the real-estate market in Quincy Center.
Since February, private companies have spent more than $36 million to acquire 11 buildings in an area pegged for a major transformation. The deals come as Mayor Thomas Koch tries to execute a long-desired plan to revitalize downtown.
“In the past six months, we have seen robust investment of private money in downtown Quincy,” Sean Kenealy, president of Quincy-based Key Realty, said.
One businessman showing great interest in Quincy Center is Andrian Shapiro, who last month purchased three properties on the Parkingway, including the IHOP restaurant and the building that once held Outback Steakhouse, for $14.6 million. In September, a company led by Shapiro purchased properties at the corner of Cottage Avenue and Hancock Street for $4.1 million.
Shapiro could not be reached for comment Monday. Christopher Walker, a spokesman for Koch, said the mayor has been in talks with Shapiro about his plans for the downtown properties, and he expects those conversations will continue.
Walker said the recent spate of real-estate deals shows the growth potential viewed in Quincy Center.
“There are those who see it as a financial opportunity and some who see a development opportunity,” Walker said. “Both of which are positive signs.”
Last month, a company led by Leo Keka, the owner of Alba restaurant at 1486 Hancock St., bought the building that houses the restaurant’s seating area. Alba had been renting the space at 1468 Hancock St. for the past three years. “I’m completely committed here,” Keka said Monday.
In February, a subsidiary of XS Brokers Insurance, which is located at 10 Granite St., bought 13-17 Temple St. – the old Patriot Ledger building – for nearly $2 million. The insurance agency is renovating the building with plans to relocate there.
The city’s first attempt at redevelopment came to a halt earlier this year when Koch cut ties with Street-Works, the master developer behind a $1.6 billion redevelopment plan. The mayor has said he’ll approach the project on a block-by-block basis going forward.
Like it did with Street-Works, the city will try to leverage its 10 acres of parking – Ross Garage and Hancock Lot – to partner with interested developers.
Last week, Redgate Real Estate Advisors, the city’s downtown consultant, told officials it could be a challenge for the city to negotiate with multiple land owners, instead of one. The first time around, Street-Works had planned to purchase all the downtown properties slated for redevelopment, but those deals have since expired.
Street-Works’ first planned block, which was named Merchants Row, is now under the control of private investor Quincy Mutual Fire Insurance and developer Gate Residential. The block, which no longer involves a land deal with the city, is now called West of Chestnut and includes plans for new residential, restaurant and retail space. Construction is expected to start next year.