Major Development Approval Just Granted Near the CBD

The Boston Planning & Development Agency granted final approval July 9 for a 42-story mixed-use tower at 125 Congress Street, two blocks from the Financial District. The project will deliver 285 apartments and 22,000 square feet of ground-floor retail on a site now occupied by a surface parking lot.

The approval arrives as Boston’s median home price sits at 780,000 dollars and university-driven demand continues to push rents higher in the core. City records show the parcel has sat vacant since a 2019 demolition, and developers cited the recent extension of the Green Line to Government Center as a key factor in moving forward now.

Site sits between Faneuil Hall and the Rose Kennedy Greenway

The building will rise on the block bounded by Congress, State and Broad streets, directly across from the Old State House and one block from Faneuil Hall Marketplace. Planners required the developer to widen the adjacent sidewalk along the Rose Fitzgerald Kennedy Greenway and to contribute 4.2 million dollars toward improvements at nearby Christopher Columbus Park. The ground floor will include space for a grocery store and two restaurants, a requirement tied to the city’s Downtown Retail Retention Program.

City data released with the permit show average asking rents for new units in the Financial District reached 4,850 dollars a month in the second quarter. The approved tower will include 57 income-restricted units priced at 60 percent of area median income, meeting the city’s inclusionary zoning rules updated in 2024. Construction is scheduled to begin in March 2027 and finish by late 2029.

Next steps for residents and small businesses

BPDA staff will hold a public information session at City Hall on August 12 to review construction staging along Congress Street. Property owners within 300 feet of the site can submit comments through the agency’s online portal until July 31. The developer has already filed for building permits with the Boston Inspectional Services Department, the final step before breaking ground.