Investors dump big air rights development over Massachusetts Turnpike in Boston

California State Pension Fund (Calpers) the major investor in the $800m Columbus Center air rights development over the Massachusetts Turnpike in central Boston say the project is no long viable. So they're seeking "an amicable resolution" with the state.

Massachusetts DOT which inherited a lease of the air rights from the former Massachusetts Turnpike Authority had formally declared the investors - Calpers and Winn Companies - in breach of their lease contract.

Investors have spent some $120m on the $800m+ project, most going into planning, permitting and design of a mix of housing and office buildings, the largest of which was to be 35 stories.

Some demolition, utility relocation and excavations were done mid-decade but no serious work has been done on the site since 2008.

The project would have covered half a mile of the Turnpike and linked the South End and the Back Bay precincts of the city.

Local residents want much less dense development on the site - which is unlikely to make it more financially viable.

Building atop a major roadway is hugely expensive compared to building on earth, the investors discovered.

TOLLROADSnews 2010-03-10