Let’s look at one of those deals in detail.
In 2004, Frank McCourt sold 23 acres of open
parking lots on the South Boston waterfront to
News Corp. for $145 million ... Two years later,
News Corp. sold the same land ... to Morgan
Stanley for $204 million. ... When the
BRA [Boston Redevelopment Authority] approved
the Seaport Square Master Plan, paving the way
for major development of midsize towers in 2010,
the land finally had real value. ... To limit
speculating, the BRA could have made Morgan
Stanley’s Seaport approvals non-transferrable.
But it didn’t.
Instead, over the next five years, Morgan Stanley
parceled out its 23 ... acres ... for a total
of $654 million. ...
After changing so many hands, ... housing, like
at Waterside Place, where a 598-square-foot
one-bedroom can be all yours for $2,685 per month.
When the people who are engaging in housing development are shaping policy to maximize short term profit, this is the result.
I don't have a clear understanding of how to prevent this from happening but my strong suspicion is that better government regulation needs to be in place that holds the public interest at heart.
Disclaimer: I live in the Boston area.
[1] http://www.bostonmagazine.com/property/article/2016/02/21/bo...