Dive Brief:
- Skanska's U.S. commercial development arm has invested $26 million in a new, 17-story, 122-unit multifamily tower planned for Boston, which the Skanska U.S. Building division will develop and build for $88 million, Multi-Housing News reported.
- The project — a joint venture between Skanska USA Development and Prudential Real Estate Investors — will include retail space and two levels of parking.
- Construction of the tower will target LEED Gold Certification and is expected to be substantially complete in late 2017.
Dive Insight:
Skanska keeps sending the business world mixed signals as to whether or not the U.S. is a viable business market for the Swedish contracting giant. Despite suffering $74 million in write-downs in its U.S. construction operations in the third quarter due to its USA Civil and USA Building divisions, this is the second high profile commercial investment for the international construction firm just this month.
Last week, Skanska announced plans to build a 250,000-square-foot multistory office building on spec on the George Washington University campus in Washington, DC. Some consider the spec building a risky move, given that DC’s office market is still in recovery.
But last month, a Skanska executive announced plans to expand the company's property development business into new U.S. markets in response to an increased demand for office space.
Skanska has recently been in the spotlight for high-profile project problems, including the Boston Green Line, Bayonne Bridge and Apple "spaceship" headquarters.
