MGM Springfield to Purchase 195 State St.
-Former School Department Building to be Redeveloped
-Market-Rate Apartments Planned
SPRINGFIELD (MA) October 5, 2015 – MGM Springfield today announced that it has entered into a preliminary agreement to purchase 195 State St., the former Springfield School Department building that has been vacant since 2010. Last week, MGM Springfield officials publicized design updates that moved market-rate apartments off-site to make way for 250 hotel rooms along Main Street.
Standing on the steps of the historic three-story building that sits on the corner of State and Maple streets, MGM executives, along with Mayor Domenic Sarno, and principals from Davenport Advisors announced the deal. They noted that the ancillary development provided MGM the opportunity to bring these residential units to market in advance of the project's opening. Davenport will handle the development, permitting and management of 195 State St.
MGM Springfield President Michael Mathis said, "We are excited to announce that this spectacular, long-vacant historic building will again come to life as part of our residential program. It is no secret that our company was drawn to the history and architecture of this city. Today we prove that our admiration of those elements extends beyond our project site, and we commit to continue to think of new and bold ways to integrate with downtown."
The announcement followed a morning meeting attended by Mayor Sarno, MGM Resorts International President Bill Hornbuckle and Mathis. Governor Charlie Baker joined the discussion by phone briefly for a first-hand project update from Hornbuckle and Mathis, who pledged to the Governor and the Mayor, the company's strong commitment to the city, region and state.
The building at 195 State St. was first home to the Springfield Fire & Marine Insurance company in 1905. The approximately 53,000 square-foot-building was designed by Peabody and Stearns and is one of the few buildings in the Springfield region designed by the well-known firm that also designed the Boston Custom House. It maintained use as a private insurance company office building until July 22, 1965, when it was sold to the City of Springfield. In 1983, it was added to the National Register of Historic Properties. Most recently it served as Springfield School Department headquarters until those offices relocated in 2010. In 2011, it was transferred for $1 to 195 State Street LLC due to the significant costs of the asbestos, HVAC, elevators, windows, and general construction costs required to redevelop the building to market rate housing.
Mathis said, "Creating new energy and life throughout downtown Springfield is thrilling for us and we are glad to bring a new dimension to this project."
Juan Prieto, Managing Partner of Davenport Advisors, said, “Springfield is poised for significant growth in the coming years and this investment represents our commitment to being a part of the city’s future. The location, history, and character of this building will be an extremely attractive combination for young professionals and others looking to move back downtown.”
Hornbuckle and Mathis also confirmed today that they are in talks to redevelop more residential units at other downtown locations. As reported last week, MGM executives are in conversations with principals of nearby off-site potential residential sites that would complement the MGM Springfield development and further activate Springfield’s downtown.
MGM Springfield must still obtain local and state approval for its updated design.
About MGM Springfield
MGM Springfield is slated for 14.5 acres of land between Union and State streets, and Columbus Avenue and Main Street. For more information about MGM Springfield please visit www.mgmspringfield.com.
About MGM Resorts International (NYSE:MGM)
MGM Resorts International (NYSE: MGM) is one of the world's leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage. The Company is in the process of developing MGM National Harbor in Maryland and MGM Springfield in Massachusetts. The Company also owns 51 percent of MGM China Holdings Limited, which owns the MGM Macau resort and casino and is developing a gaming resort in Cotai, and 50 percent of CityCenter in Las Vegas, which features ARIA Resort & Casino. For more information about MGM Resorts International, visit the Company's website at www.mgmresorts.com.
About Davenport Advisors LLC
Founded in 2014, Davenport Advisors LLC is a certified Minority Owned Business specializing in real estate development and property asset management. The company is headquartered in Boston. Its Managing Partner, Juan Prieto, has more than 30 years of experience in real estate development. Previously, Prieto served as Chief Operating Officer of Cabot, Cabot & Forbes. Prieto’s partner in Davenport is Joy Martin, who serves as both Co-Manager and Director of Asset Management. Martin is a 15-year veteran of the real estate and property management industry.