First City Development's deal to buy a 435-unit apartment property in Cambridge, Mass., fell apart last week

Real Estate Alert, June 2, 2004

First City Development's deal to buy a 435-unit apartment property in Cambridge, Mass., fell apart last week. First City had agreed to pay owner ING Clarion Partners $151 million, or $347,000 per unit, for the seven-year-old Museum Towers at North Point. It planned to convert the two 24-story towers to condominiums, which would have carried a market value of $543,000/unit.

First City backed away over pricing issues. Broker Cushman & Wakefield is apparently turning to the number-two bidder, conversion specialist Crescent Heights. ING Clarion bought the property from developer Dean Stratouly for $108 million in 1999.