Boston landlord seeks to replace downtown offices with 95 apartments

A landlord in downtown Boston is seeking to swap out 10 stories of office space for 95 rental apartments — the largest among a handful of proposals looking to cash in on new city tax breaks in exchange for converting workplaces into housing.

STJ Devonshire Equity Partners LLC is proposing the $36 million conversion for its three adjoining buildings at 85 Devonshire St. and 258 and 262 Washington St., an application filed on Tuesday with the Boston Planning and Development Agency shows.

The project would, if approved, envelop 60,800 liveable square feet between floors two and 11, John Pulgini, an attorney representing the owner, wrote to the BPDA.

Of the total 95 proposed units, there would be 29 studio apartments, 54 one-bedroom units, and 12 two-bedroom residences, according to Pulgini.

Seventeen percent of the units — or approximately 16 apartments — will be deed restricted for households making up to 60% of the area median income or AMI, as set under the city’s Inclusionary Development Policy, the filing states.

“The development team is excited to pursue this new program as it will provide an abundance of new housing in Boston, at a time when the City of Boston is in great need of residential opportunities,” Pulgini wrote.

The ground floor and mezzanine levels will remain retail space, totaling 15,798 square feet, Pulgini wrote. 

There is currently no parking on the 12,262-square-foot site, although space to store eight bicycles for residents will be provided in the basement of 85 Devonshire St., the application states.

The project is the latest looking to tap into the Downtown Office to Residential Conversion Pilot Program city officials unveiled last summer. 

The public-private collaboration hopes to lure foot traffic back to Boston’s downtown, as new, remote work routines have left offices underutilized and streets a bit more empty than prior to the COVID-19 pandemic. The initiative could also serve as another avenue for combating the region’s persistent housing crisis.

“It’s a win-win all around,” Mayor Michelle Wu told NBC 10 Boston’s “@Issue” last week.

“We need more foot traffic to support the small businesses, it keeps the community vibrant and safe and exciting, and it’s also a time when there’s much less demand for downtown office buildings, given new ways of working and much more virtual and hybrid work.”

Through the program, developers with approved projects will enter PILOT, or payment in lieu of taxes, agreements and will be subjected to a charge of 2% of gross proceeds should the property be sold, according to the BPDA.

Applicants must submit plans by June and start construction no later than October 2025 to be eligible.

The BPDA did not immediately respond to a question from Boston.com on Thursday about how many applicants have so far sought to take advantage of the program.

But the agency told the Boston Herald there were four applications as of late last week, with the proposal for the three adjoining buildings on Devonshire and Washington streets the largest submitted to date. If approved, the projects would create a total of approximately 170 new housing units.

The BPDA is accepting public comment on the proposal from STJ Devonshire Equity Partners LLC through March 21.

Correction: Due to a reporting error, previous versions of this story gave an incorrect breakdown of the proposed units. Twelve two-bedroom units are part of the total. Boston.com regrets the error.

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