Scientologists' Headquarters Going Residential?

The Church of Scientology is in the midst of relocating its Boston headquarters from the Back Bay to the South End.

Its property at 448 Beacon Street is listed for sale at $10.5 million. The approximately 25,000 square foot building, originally a single-family mansion built circa 1889, is known for its unique exterior design, a mixture of tan, brick, and red sandstone. Because the property is in the Back Bay historic district, little, if anything, can be done to the exterior.

A fair amount of original detail remains, inside. Some original woodwork remains, and several of the building's seven fireplaces have hearths with ornate designs of wood and granite. There's already an elevator in the building. But, any rehab project would cost in the millions.

It's probable that the buyer would be a developer who would turn the building into multiple residential units. Logically, they would be condominiums, not rental apartments, due to the size of investment as much as neighborhood preference. The purchase price includes 14 parking spaces, making it even more attractive to condo buyers.

Back Bay neighbors would most likely approve of plans to turn it into residential housing. Undoubtedly, the city would like the idea, too. The property is currently zoned tax-exempt, due to its ownership by a church. My guess is that, as condos, the new units could be valued around a combined $13-15 million, potentially $178,000 in annual property tax revenue.

Assuming a purchase price of $10.5 million and an estimated investment of $4-5 million to bring it to the high level of luxury demanded by condo purchasers, and adding in a minimum 10 percent return on investment, it's at least a $17 million project. My guess is a developer would "go big" with as few as five or as many as eight units at 448 Beacon Street.

Clearly, there's a lot of potential here. But what's not clear is when a project of this magnitute would actually take place, given the state of the real estate market. In good times, building and trying to sell $3-4 million homes is full of risk; doing it in uncertain times borders on the insane.

The Scientologists' building has been listed for sale since February of this year. It recently had a price drop from its original $12.5 million price tag. Hopefully, the new price will lead to action on the part of a developer. An empty building at that site would please no one.

About this column: Boston resident John A. Keith is a residential real estate broker and owner of John A Keith Real Estate, based in the South End.