PROVIDENCE – Wexford Science & Technology will push back by two years its deadline for purchasing additional land in the Interstate-195 Redevelopment District, and it will acquire a smaller amount of land.
The changes were included in a revision to its purchase and sale agreement, approved by the I-195 Redevelopment District Commission on Wednesday.
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The development company cited a softening of the market for office space, which along with laboratory and research space was originally expected to be the purpose of its second development phase, said Robert Davis, chairman of the commission, in a telephone interview Friday.
“It wasn’t a surprise, given … the economy,” Davis said. “In all real estate deals of a large nature, they evolve. This was an evolution.”
Originally, the company intended to develop fully all of Parcels 22 and 25 in the district.
In its first phase, Wexford developed the office building and innovation center at 225 Dyer St., a building now known as Point 225. The Aloft Hotel, now under construction, is a project of CV Properties, and it occupies a portion of Parcel 22 that was subdivided for that building.
The remaining land, which is divided into three lots, is the subject of the revised purchase and sale agreement.
The company had faced a deadline for the closing on its second phase acquisition of Oct. 3.
Under the new agreement, the company will relinquish one of the three lots, giving back about 1 acre of land.
That property, which is at the corner of Clifford Street, opposite the Garrahy parking garage, is enough to support a building, Davis said. The commission will likely solicit proposals through from other developers for it using a request for proposal.
Davis said the office market has softened as a result of the pandemic. And he noted the company, through its real estate arm, had previously purchased the office building at 1 Davol Square.
“They made a pretty substantial investment in the innovation and technology district,” Davis said. “They have a fair amount of office space in the district that is not occupied. They’re just being cautious.”
In other revisions, Wexford pushed back its right to make a first offer to purchase another office building, at 1 Ship St., to one year after its closing on the first of its two remaining lots, or until the purchase and sale expires in September 2022.
In exchange for the revisions, the company has agreed to provide the I-195 commission with $500,000 for improvements to the district park, upon the leasing of 30,730 square-feet of available space in its completed building at 225 Dyer St.
That is not the full amount of available space within the building. But because the company is having ongoing discussions with other prospective tenants for that building, the commission expects the $500,000 commitment in the “near term,” Davis said.
On Monday, a Wexford representative said the company appreciated the flexibility granted by the commission. Without offering specifics, Gregg Herlong, director of development, said Wexford will continue to pursue “additional projects that will strengthen and enhance the area in and around the Providence Innovation and Design District, and we remain committed to playing an integral role in the exciting transformation that is taking place in Providence.”
Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@pbn.com.
