• Foreclosures by Neighbourhood
• Boston's biggest mansion
• Chinatown

Credit Suisse Group has acquired Independence Wharf in Boston, for $106 million from GE Real Estate (~ $306 p.s.f).

In Boston's biggest office deal this year, Credit Suisse Group has acquired Independence Wharf, a waterfront office building, for $106 million.

Built in 1927 and renovated in 2001, the 336,725-square-foot, 14-story office property is on 0.83 acres at 470 Atlantic Ave. in Suffolk County. The structure is about 92 percent leased with William Gallagher Associates Insurance Brokers Inc., Babson Capital Management LLC, Huron Consulting Group LLC and Duane Morris LLP leading the tenant roster. The average asking rent per year is close to $51 per square foot, according to CoStar Group information.

GE Capital, under the investment entity Independence Wharf LLC, acquired the building from Modern Continental Cos. in summer 2002 for $82.2 million, or about $244 per square foot. -    2009 September 30

ESSENTIALS: 200 Clarendon Street Finished: 1976 Floors 60 Height 790 ft Gross Floor Area 2,060,014 ft² - Kelvin Fields illustrator

Boston's John Hancock Tower, New England's tallest building, was sold Tuesday in a foreclosure auction held by an investor group for $660.6 million, half the price paid by real-estate private-equity firm Broadway Partners three years ago.

The winning bidder was a partnership between Normandy Real Estate Partners and Five Mile Capital Partners, which holds the senior portion of $700 million in so-called mezzanine debt, or the part that fills the gap between the first mortgage and a borrower's equity. The partnership agreed to pay $20.1 million for the mezzanine debt and assume the first mortgage of $640.5 million. The Normandy-Five Mile team has bought pieces of the mezzanine debt at discounted prices since June 2008. The debt was originally made by Greenwich Capital, which is part of Royal Bank of Scotland Group PLC, and Lehman Brothers Holdings Inc.

The auction, which some participants described as a "non-event" and lasted only a few minutes, reflects a steep decline in commercial-property values as the economic distress sweeps through office buildings, shopping malls, hotels and the like. The investor group moved to conduct the foreclosure auction after Broadway defaulted on the mezzanine loan, which came due in early January.

Unless other creditors or Broadway Partners go to court to try to block the foreclosure, the Normandy-Five Mile partnership will take over the building immediately. People familiar with the matter said a court fight is "highly unlikely."

The Normandy-Five Mile partnership also won the bidding for one other office tower controlled by Broadway Partners in Southern California, called 10 Universal City Plaza near Los Angeles. Their winning offer was about $304.9 million.

"We will look forward to serving their tenants," the partnership said in a statement.

A spokesman for Broadway declined to comment. Founded by Scott Lawlor, the son of a Queens, N.Y., cab driver, Broadway was one of the most aggressive real-estate private-equity firms, buying $14 billion of office buildings from 2002 to 2007 in highly leveraged transactions   - 2009  April 1   WALL ST. JOURNAL  

Broadway Partners' run as landlord of the John Hancock Tower in Boston is likely wrapping up, as the real-estate private-equity firm's mezzanine lenders prepare for a foreclosure auction on the landmark skyscraper and one other office tower in Southern California.

The mezzanine lenders, a consortium that includes Five Mile Capital Partners, Normandy Real Estate Partners and John Buck Co., have hired a unit of SL Green Realty Corp. as a "special servicer" to handle the transition. Brokers Eastdil Secured will market the properties.

Broadway defaulted when a $700 million mezzanine bridge loan connected to the properties came due in early January. A Broadway spokesman says the firm "continues to work with lenders and partners to address the debt obligations."

The auction, including 10 Universal City Plaza near Los Angeles. is set for March 31, 2009.   - 2009 February 11   WALL ST JOURNAL 

It's official: The John Hancock Tower is for sale

The 60-story tower in Boston's Back Bay, perhaps the city's most distinctive office building, is being put on the market along with two nearby company-owned buildings. Hancock officials would not say how much they will be asking for the properties, which include 197 Clarendon St. and 200 Berkeley St. as well as the mirrored glass tower. Nor would they say how much they expect to get.

John Hancock Financial Services Inc.'s intention to consider a sale of the tower was reported in the Globe on Oct. 2002

In a press release , the company said it would sell the three-building Tower Complex over the next several months. Despite the current general economic and leasing slump, this remains one of the hottest markets for solidly leased office properties in history.

"It's a world-class building in a world-class location," said an industry expert . He said the price Hancock will get for the tower will depend on how long the company plans to keep its headquarters in the building as an anchor tenant.

"I think you're going to see a lot of action on that building," he said.

Hancock officials said in their statement that the company plans to keep its offices in the distinctive building at 200 Clarendon, near Copley Square.

A source in the real estate community said Hancock may be asking as much as $ 1 billion for all three properties. However, another industry source noted there is a lot of new space recently built in the Back Bay, vacancy is high, and rents are soft. "That's going to be a governor on the price, " said the source.

Hancock, apparently preparing for a sale in today's sellers' market, has diversified its tenant mix by reducing the amount of space it occupies in the tower from 54 percent to about 20 percent.

The sale will be handled by the New York office of the investment banking firm Morgan Stanley. Morgan Stanley also marketed the Prudential Center when it was purchased several years ago by Boston Properties.

Separately, the company recently put on the market the Hard Rock Cafe building at 131 Clarendon St., and two nearby parking lots, which can accommodate another 650,000 square feet of development. That sale is being handled by Cushman & Wakefield of Massachusetts.

The Hancock Tower is the second-largest office building in Boston, with almost 1.6 million square feet. It was designed by I.M. Pei & Partners' Henry Cobb and was built in 1974. -   2002 November 27  The Boston Globe

OFFICE

Real estate insiders see more rent hikes

The Boston real estate market is headed for another year of rent escalation as office space continues to dry up and developers find it difficult to finance new projects.

At the end of 2007, Boston's office market posted one of the healthiest vacancy rates since 2001, dipping below 10 percent and sending average asking rents above $50 per square foot. Property owners in Boston stand to gain again this year with a lack of vacant space forcing tenants' hands at the bargaining table, said real estate experts who expects rents to increase as much as 10 percent this year over last.

While rents are expected to continue to increase, it will be less of a spike than last year as a fragile economy and tight credit market cause landlords and tenants alike to behave cautiously.

"I think that there's a potential for a temporary stall on the demand side right now because of the subprime lending issue," said David Fitzgerald, an executive vice president at CB Richard Ellis New England. "I think the supply-and-demand ratio is still very strong on the landlord side. Tenants have to look ahead, and they are. That's why tenants are negotiating for big blocks years ahead."

At the end of the fourth quarter of 2007 the Boston office market posted a 6 percent vacancy rate -- the lowest it's been since 2001, when it was 5.5 percent. Average asking rents at the end of the fourth quarter in Boston were $54.80 per square foot, the second highest asking rate since 2000 when the year ended at $61.00 per square foot, said Lauren Picariello, research manager at Jones Lang LaSalle. (In 2007 dollars, that $61 would be worth about $73, adjusted for inflation using the consumer price index.)

"I would look at much more modest increases this year," said William Barrack, a managing director at Jones Lang LaSalle. "There will be more modest (growth) on a percentage basis than there was in 2007. We had close to 50 percent rent growth last year. Instead of it going from $40 to $60 (per square foot), it will go from $60 to $65 (per square foot)."

How high rents will go this year depends on a number of factors, but primarily rests on how many new office developments get started, said Barrack. There are no new office buildings opening in Boston for the next 24 months, said Barrack, who also said the lack of new space will continue to put pressure on rents.

There are 171 companies looking for a total of 4.6 million square feet of office space in Boston, he said. At the end of the fourth quarter last year there was 3.5 million square feet of vacant space for lease, according to Jones Lang LaSalle's fourth-quarter report.

With no new construction of high-quality, premium Class A office space coming on the market, tenants looking for office tower space are faced with few choices. According to a recent market presentation by Meredith & Grew Inc.'s Ronald Perry, the vacancy rate at the end of the fourth quarter for the Class A tower market above the 20th floor was 2.5 percent with asking rents between $65 per square foot and $75 per square foot. The vacancy rate for tower office space below the 20th floor was 5.3 percent with asking rents between $45 and $55 per square foot.

"I think you're going to still have a good year," said Perry, who is executive vice president at Meredith & Grew.

Perry expects the rent spike seen last year as a result of owners paying top dollar for commercial property will moderate this year as the credit crunch and lack of debt cools the market. However, the Class B market stands to gain as tenants seek rent relief. There will be approximately 3.3 million square feet of leases expiring between now and 2011, said Perry, adding he believes vacancy will drop below 6 percent by 2011.

The lack of space and high rents drove many tenants to lesser-quality buildings last year, increasing Class B asking rents by 14 percent from $26.64 per square foot in 2006 to $30.51 at the end of last year, according to Brendan Carroll, director of research at Richards Barry Joyce & Partners LLC.

"It does appear at this point, Class B landlords feel they have some negotiating power," said Carroll.  - 2008 January 4   BOSTON BUSINESS JOURNAL

Office market feeling debt crunch

The nationwide credit crunch has already scuttled at least a few Boston commercial real estate deals and has led some industry players to question whether the red hot prices realized over the past few years are sustainable.

As strong as the city's real estate market is, experts and insiders said, no market can continue unaffected as major sources of capital withdraw -- which is exactly what has happened nationwide as lenders stop issuing easy credit.

"Ultimately this has to have an impact on property values," said Brian Kavoogian of Charles River Realty Investors LLC.

Despite his concern, Kavoogian doesn't expect the market to collapse, in part because the pipeline for deals already contains considerable capital that won't be withdrawn.

Peter Goedecke of Goedecke & Co. LLC who arranges real estate financing, said, "I think prices and values will be affected."

"We're no different than any other asset class. I think we will see fewer sales and lower prices over the next 12 months than the last 12 months," he added.

And David Geltner, director of the MIT Center for Real Estate, said a market that has seen a steady stream of big deals at ever-higher prices -- last year saw more than $10 billion in transactions -- just can't continue.

"I would say that this credit crunch would have to take some of the wind out of that," Geltner said. "I wouldn't completely rule out a collapse, but I think it's a low probability. What I'm hoping for is a leveling off which will allow things to catch up."

The effect on deals depends largely on where the money to finance purchases was coming from.

Numerous players said buyers who were relying on loans financed by nontraditional sources will now have to turn to banks and insurance companies and pay the higher prices they charge for debt.

Goedecke said deals already in process are at a standstill and are being repriced -- or buyers are deciding not to make offers at all.

"It's a more difficult or challenging time right now," said Mike Marcone, founder of Marcone Capital Inc. in Quincy. "That money is more difficult to come by."

Marcone, who arranges debt for buyers of industrial, office, retail and multifamily properties, said many of his clients leverage 80 percent to 85 percent of their deals in order to turn a profit. Marcone said lenders are now repricing debt, causing his clients to come up with extra equity to close the spread.

"What you could sell a property for a few months ago, in my opinion, is not what you could sell it for today," said Marcone.

New York investor Kambiz Shahbazi said he hasn't been forced to back off any deals due to a lack of financing.

Shahbazi did concede the cost of capital, specifically debt, was forcing him to renegotiate deals currently in process. Of four deals Shahbazi is in the middle of negotiating, he has asked two sellers to adjust the price and two to give him more time to arrange financing.

"Pricing is going to get readjusted because risk is being readjusted," said Shahbazi, president of KS Partners LLC. Kevin Phelan, executive vice president of Meredith & Grew Inc., said the lack of credit will likely "neutralize the leveraged buyers." But, he said, "the all-cash buyers are still going to be there."In some cases, potential sellers have responded to the rapidly changing climate by delaying plans to put properties on the market, said Robert E. Griffin Jr., president of the New England region for Cushman & Wakefield of Massachusetts Inc. Griffin said the property types that have suffered most are portfolios and non-trophy assets. Last week Griffin said he had a buyer walk away from a deal that was under agreement because the buyer was nervous about the debt market.

"When the debt markets get jittery people pull back, but I think they'll come back to the table because there's still plenty of equity available in the marketplace," he said.

"About a year ago we saw this train (wreck) coming...," agreed George Fantini Jr. of mortgage banking firm Fantini & Gorga. "It's just too early to tell what the ultimate impact of this will be but clearly this is not good news."

MIT's Geltner said the market will not be able to sustain the same level of pricing that has been achieved in the last several years, with Class A properties selling for as much $800 per square foot.

Geltner said prices should plateau, not decline, if the economy and indexes remain strong. If not, or if the credit crisis deepens, the market could be in for as much as a 10 percent price correction, essentially re-setting the market back to 2006 levels.

However unlikely a drop of 10 percent or more is, he said, such a scenario "would certainly cause some damage." - BOSTON BUSINESS JOURNAL   2007 August 24

• Boston Chinatown
• Fan Pier

More than two dozen condos traded hands for $2M or higher

The number of condominiums that sold for over $2 million this year in Boston is nearly double the number that sold in that price range in 2004.

Most of the sales, 27, have been in the $2 million to $2.99 million range, a 125 percent increase over sales in that price range last year.

In all, 34 condominiums have sold for more than $2 million as of last week, with prices spiking as high as $5.25 million this year.

Expensive condominiums are selling faster as well, with a condominium priced over $2 million sitting on the market an average of 101 days this year, compared to 165 days last year, according to the Multiple Listing Service Property Information Network Inc. in Shrewsbury.

The condominium market in Massachusetts has continued to barrel along, even as the single-family house market has slowed in the past three months. While the number of condominiums that sell for over $2 million is a small fraction of total condominium sales in Massachusetts, that number has still increased 89 percent from the 18 sold in the same period in 2004.

One Charles, a newly finished development at One Charles St. in the Back Bay, is home to many of the multimillion-dollar condominium units sold so far this year. The 231-unit building was developed by Millennium Partners and sales began closing this past spring, boosting the sales activity in Boston. A penthouse unit in the building recently sold for $4 million, and the building is nearly sold out.

More $2 million-plus condominiums have been selling in another Millennium Partners building, The Residences at the Ritz-Carlton Towers. A three-bedroom penthouse unit in the 2 Avery St. building near Downtown Crossing recently sold for $5.25 million.

Millennium also recently converted 63 units in the tower that had been rental units to condominiums and sold half of those in the first two weeks, said Anthony Pangaro, a principal with Millennium.

While these prices are the very peak of the current market, more expensive condominiums are currently being planned, which has spurred some people to buy in recent months, he said.

"The prices seem perfectly reasonable against quoted prices for buildings yet to be built," said Pangaro.

On the waterfront, The Residences at Battery Wharf, for example, are priced as high as $5 million, and that is before the 104 condominiums are even built. In the Back Bay, construction has just started on the Residences at the Mandarin Oriental, and prices for those condominiums currently start at $2 million.

Deep demand

Despite the number of luxury condominium projects in the pipeline, there are still more empty-nesters seeking city condominiums than there are condominiums, said Kevin Ahearn, of Otis & Ahearn in Boston.

"Demand is much deeper than what people think it is," he said. Ahearn is currently marketing luxury condominiums on the waterfront at 500 Atlantic Ave. One year from completion, 68 of the 130 units have been taken.

"It's unbelievable how many people are funneling in -- with that amount of money -- to a small city," Ahearn said.

As the number of condominiums sold for over $2 million shot up dramatically this year, the number of single-family houses sold in that price range in the state is up about 9 percent, to 159. Those houses were on the market for an average of 113 days, compared with the 146 houses that sold in that price range last year, which sat on the market for an average of 147 days. - 1 August 2005    BOSTON BUSINESS JOURNAL    

'Gold rush' is on to build condominiums

High prices and high demand for condominiums in Greater Boston are creating a gold-rush environment with developers racing to build new condominiums and rake in profits before the market softens.

The sales pace remains strong and there are no signs of major changes in the economy that would slow the condominium market in the next year. But the inventory of condominiums in the $2 million to $3 million range, and especially those over $3 million, are reasons for caution in luxury condo development, according to a report issued this week.

The estimated inventory of condominiums priced between $2 million and $3 million in the Boston and Cambridge markets now stands at 10 months. The inventory of over-$3 million condominiums is about 17 months, according to the report by Northeast Apartment Advisors Inc. in Acton.

Besides the existing inventory, several luxury condominium buildings are under construction in Boston, or soon will be. On Battery Wharf, 103 condominiums are planned.

At 500 Atlantic Ave., 130 condominiums are under construction. On Boylston Street in the Back Bay, construction recently began on another 105 condominiums.

For many of the planned and current projects, preconstruction sales have been strong. While many buyers are putting down deposits, a sudden economic shift could affect actual sales.

"What happens if the market goes sideways? Will people walk from their deposits? Will they not make the subsequent payments required?" said Thomas Meagher, president of Northeast Apartment Advisors.

Condominium sales continue to be strong and the high demand continues to spur more development, said Kevin Ahearn of Otis and Ahearn in Boston.

"Downtown, the activity is unbelievable in terms of how many people are trying to get things online. The interest in developing (new properties) is just going gangbusters because of the strength of the market," Ahearn said.

Any developer starting a project now, or about to start one, however, runs the risk of running into a cyclical economic recession before the condominiums are sold out, Meagher said.

"It's the whole trick of musical chairs. We just don't know when the music's going to stop," he said.

In Boston, sales activity remains strong, and strong condominium sales activity is spreading farther out of the city, to places such as Watertown and Quincy. In some suburbs, the condominium activity is outstripping single-family house sales activity, said Ahearn.

Still, Meagher warns that the country's trade deficit with China, the federal budget deficit, the problems facing automakers in Detroit -- among the largest employers in the country -- could each hurt the national economy and stop the music that's keeping the condominium market going strong. - by Tom Witkowski    BIZJOURNAL   18 July 2005

Luxury Condo project in Old Candy Factory
Benefits from 25 yrs of Cambridge Foresight

When a developer invests $90 million in a residential project, it helps to have a quarter-century of good public planning and construction to build upon.

The 1.5-acre site is located near Lechmere Square in East Cambridge where, until the 1980s, old factories, mechanic shops, and parking lots permeated derelict streets and lined a forlorn Charles River. But starting in the late 1970s, the city created a master plan to redevelop the area. Planners channeled about $50 million in local, state, and federal funds to upgrade the roads, build a parking garage, and install parks that now thread through streets and along the cleaned and revitalized riverfront.

In October, when marketing begins for One First, a five-building complex with condominiums priced from $375,000 to $1.1 million, selling points will be the design by Elkus/Manfredi Architects Ltd. and the neighborhood, which is within walking distance of Beacon Hill and is now filled with all of the amenities city dwellers need, said Mahmood Malihi, executive vice president of Leggat McCall. He expects construction to start by year-end with occupancy to start by early 2006.

"Five distinct residences will create the intimacy of small buildings, urban diversity, and a large project's economies of scale," Malihi said.

The two new and three renovated buildings clustered around an outdoor courtyard will feature one- to three-bedroom units with soaring ceilings, expansive windows, granite countertops, and cherry cabinets. Parking for 203 cars will be provided, and a concierge will be on hand. Developers are hoping the expected buyers empty nesters, professionals, and academics will be drawn to the neighborhood's now trendy enclave of offices, condominiums, restaurants, and shopping. One First will also include 8,000 square feet of retail space.

Meanwhile, bordering the complex is a stretch of Otis Street that's now closed to traffic and resembles one of the verdant parks that lead to the Lechmere Canal, where tour boats circle a gushing fountain at the CambridgeSide Galleria.

This idyllic scene is what city planners envisioned a generation ago, said Lester Barber, longtime city zoning director.

"The area declined from industrial to a motley collection of auto repair, parking lots, and suburban-style discount retail," he said. "It's been dramatically transformed consistent with the master plan."

The city working with land owners and residents determined the use, size, and riverfront orientation of the new private development; designed the park system; and planned for the closing of Otis Street. In 2001, a new city zoning code required the site to include housing that preserves the historic buildings.

The first factory opened there in 1864 and, eventually, a plant occupied two city blocks. An early user, Irving & Casson-A.H. Davenport Co., designed furniture for a 1902 renovation of the White House and the 1950s construction of the United Nations headquarters. By 1936, however, one block had already been consumed by the Haviland Candy Co. which kept stamping out sweets until 2002, said Charles Sullivan director of the city Historical Commission.

Builders see the return of renters

From Interstate 495 to Boston, 3,382 apartments will hit the market this year. That is the highest number since the boom times of the 1980s, Northeast Apartment Advisors Inc. says.

The explosion in apartment building comes after a long slide in rents over the past few years. Rents fell 1.5percent in the spring quarter, settling at a Boston area average of $1,317 a month, Northeast reports. Others say rents have dropped as much as 20 percent in the past five years.

Noting the falling rents, some see a risk in the surge of apartment construction.

``They are betting the whole market will turn around,'' said William Wheaton, head of the Massachusetts Institute of Technology's Center for Real Estate. ``It's a gamble.''

``The rents are very, very soft,'' Wheaton observed.

But some builders say their projects are good bets.

``Rising interest rates will push people from condo buying to renting,'' contends Peter Palandjian, whose Intercontinental Real Estate Corp. is building a 200-unit apartment high-rise in downtown Quincy called Presidents' Place.

``We are always a believer in the greater Boston area as a desirable place to live,'' Palandjian said.

Other builders concur.

Northeast says the 3,382 apartments expected to come on line this year represent a hike of 31 percent from last year. It is also far above the 1,565 apartments that opened up in 2000 at the end of the 1990s boom.

``There is a lot more optimism in the development and financial communities,'' said Northeast's Thomas Meagher. Yet the work remains a far cry from the late 1980s, when builders produced 10,000 rental units a year.

As they hammer away at apartment projects, developers are taking a rosy view of the big economic picture. Rising job growth is expected to fuel demand for new living spaces, and rising interest rates will push more into rentals.

Builders are also placing their bets on the suburbs.

While Boston has a large apartment tower taking shape near Chinatown, most of the apartment projects expected to open this year are in suburbs to the south and north, from Quincy to Saugus.

GRAPHIC: Room for more

More new market rate apartments are being built this year than in the recent past, driven by a tight rental market and a weak commercial market.

Number of new market-rate apartments built in greater Boston, by year :

2004 (projected): 3,382
2003: 2,589
2002: 1,781;
2001: 803 units
2000: 1,565
1999: 1,036
1998: 1,398
1997: 120
Source: Northeast Apartment Advisors, Inc.
- by Scott Van Voorhis      BOSTON HERALD    13 July 2004

Popular on the West Coast, staging homes for resale is growing in popularity in Greater Boston. There are many benefits to having a professional offer suggestions:

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420-Unit Apartment - largest rental in 20 years

Archstone-Smith began construction on Park Essex, its new Charles E. Smith-branded development in the city's downtown district near Chinatown. The project--the largest rental residential property to be developed in Boston in more than 20 years--was formerly known as Liberty Place. The 28-story building at 600 Washington St. will offer 420 apartments for lease. The developer anticipates that the studios, one-, two-, and three-bedroom residences will be available for lease by spring of 2006. The project will feature a sports club facility, a café, an indoor swimming pool and garage parking.

Boston Condon Sales slip 12%
Consumer Fears Put Brakes to Pace on High-End Units

Sales of high-end condos in Boston dropped significantly during the first nine months of 2003, reflecting consumer fears over rising real estate prices and unemployment.

After several years of a record-breaking pace, sales of units priced at $500,000 or more in the city slipped to 844 during the first three quarters, compared to 961 during the same period last year, a 12.2 percent reduction, according to data from the MLS Property Information Network and the Listing Information Network, or LINK, a firm that tracks condo sales in Boston.

Total condo sales in the city are off by nearly 6 percent for the first three quarters, down to 4,187 from 4,447 during the same nine months of 2002.

While agents like to cite examples of properties that have sold above asking price following a bidding war, the evidence suggests such instances have been rare recently. Of the 100 condos sold since Sept. 15, only four were sold above asking price, according to LINK's data.

Still, for potential buyers waiting for the bubble to burst and prices to fall, there's little to celebrate. The median sales price for a Boston condo this year is $360,000, up from $330,000 for the first three quarters of 2002, a 9.1 percent jump.

"The only bright spot for buyers is that inventory is rising and price appreciation has finally fallen from the double digits. But it's still high," said Karl Case, a Wellesley College economics professor who tracks the real estate market.

Case said the resilience of home sales in the face of such a dour economy is inexplicable.

"I've never seen a time when we were in a recession and the real estate market was not impacted. Given the amount of pain that's out there in the economy, it's hard to believe the volume of sales could stay up, but they have," Case said. "Things are not selling the way they were, but how could they be expected to? The decline in jobs has been dramatic."

Lawrence Shevick, of Kimball Borgo Real Estate in Boston, said he is beginning to see the ripple effect of unemployment.

"Companies are downsizing, and work that was once done by employees is going out to independent contractors," he said. "Fidelity workers, once the major source for our buyers, are being transferred to out-of-state offices."

Ann Whiteley, a sales associate with Coldwell Banker Residential Brokerage in the Back Bay, said given the fact that the 5.8 percent Massachusetts unemployment rate is the highest in nearly a decade, she expected sales to slow even more dramatically.

Sara Rosenfeld, co-manager of Coldwell Banker Residential Brokerage in Brookline, said Boston's three record-breaking years of condo sales from 2000 through 2002 could not be sustained.

"During those years, many customers bought, and that's a lot of absorption of buyers in the marketplace," said Rosenfeld. "At the same time, we're dealing with a dwindling number of qualified buyers because of job loss and job insecurity. Lots of people have left the area in search of work, while many renters are waiting to see what happens with the economy." -  The Boston Globe   11 Oct 2003

City a magnet for apartment developers
More than 2,100 units approved or being built

In Quincy Center, work on the Munroe Place apartments in front of the MBTA station is nearing completion.

Not far away on Quarry Street, steel beams stretch toward the sky at the site where the massive Highpoint luxury apartment complex is being built.

Throughout the city, more than 2,100 apartments are either under construction or have received municipal approval. At least one other major project is in the works.

The wave of development comes at a time when a softening of the Greater Boston rental market has led to a bump in vacancy rates and forced landlords to bring down prices and offer perks such as a month of free rent.

While owners of the Quincy apartments may have to temper their expectations when it comes to rental income, most developers and industry experts said that even with the lull, demand should remain high enough to fill most new units in the short-term and allow Quincy to retain its attractiveness to builders and would-be tenants in the long-term.

"We have a constant infusion of people coming here for employment purposes, schooling purposes," said Edwin Shanahan, chief executive officer of the Greater Boston Real Estate Board. "Demand for housing has been and continues to be relatively constant. That's not to say there aren't fluctuations in the market and sporadic volatility."

"The convenience of the commute helps make Quincy attractive as a community to live in," he added. "If you build it they will come, to paraphrase 'Field of Dreams.'"

Here is an update on major residential projects under construction or approved in Quincy:

2 Hancock St.

Conroy Development's plans to build a 280-unit apartment building on Hancock Street on the banks of the Neponset River must go back to the city's conservation commission, the state Department of Environmental Protection ruled this week.

The conservation commission approved the project in May, but the decision was appealed by the Neponset River Watershed Association.

In its ruling Tuesday, the DEP said plans must be filed again because Conroy failed to submit a report outlining alternatives that would be less environmentally damaging.

The DEP decision can be appealed.

Representatives from Conroy Development and the Neponset River Watershed Association could not be reached Friday.

The project has already won approval from the zoning board of appeals.

Presidents Place

Intercontinental Developers Inc. is looking to buy the Quincy Center property next to Presidents Place where 200 apartments are planned, said Scott Shaull, director of development and construction for the company.

The land is currently owned by the Teachers Retirement System of the State of Illinois as an investment. Lincoln Property, acting as the developer, secured necessary permits. Abbott Real Estate Development, which is building Munroe Place across the street, had expressed an interest, but a sale never went through.

Shaull said Intercontinental hopes to close on the deal by the end of the year and construction could start in early 2004.

The Brighton development company recently completed Nine Zero, a luxury boutique hotel at 90 Tremont St. in Boston. The company also transformed the old Stop & Shop bakery at 226 Causeway St. near North Station into office space and 108 residential units.

The Residences at Munroe Place

The 111 apartments being built in front of the Quincy Center MBTA station should be completed by December and ready for tenants early next year, a representative for Abbott Real Estate Development said.

The building includes 57 one-bedroom and 54 two-bedroom units, averaging 770 and 1,231 square feet, respectively.

Reserve at Marina Bay

The 108 apartments in the second of two buildings that comprise the Reserve at Marina Bay are scheduled to open in January, said property manager Kelly Fichtner.

The first building, with 136 apartments, opened last September.

The owner, Lincoln Property Co., considers the buildings on Seaport Drive to be one complex, so rents will be the same, Fichtner said. A one-bedroom rents for $1,600 to $2,100; two bedrooms range from $2,000 to $2,450.

Cliffwalk Apartments

Corcoran Jennison Institutional Services is building 130 apartments on Willard Street in West Quincy. Four floors of the six-story building are already constructed. Work should be completed by April and tenants could move in some time in the spring, said Karina Mendoza, a portfolio manager for the company.

Prices have not been set for the one-and two-bedroom apartments.

The building is located next to the Rosecliff apartments built by the same company.

Highpoint

Construction is well under way at Highpoint, the massive luxury apartment complex that touched off one of the most controversial development debates in the city's history.

Plans call for 10 buildings with a total of 1,040 apartments to be built over 10 years. The first phase, which includes five buildings and roughly half the units, will be completed and leased before construction on the remaining buildings begins.

The frame of one building is complete and the facade is being added.

The frame on another has been erected, and two others are in the process of being assembled. The foundation for the fifth building was laid this month, said Thomas Thompson of developer Congress Group Ventures.

A parking garage should be finished within two months.

The developer hopes the initial wave of tenants can move into the first building by April. Another building would open every month or two afterwards, and all five should be occupied by spring 2005, Thompson said.

Rents have not been set.

Village at Quarry Hills

The Texas-based Finger Companies plans to build 316 apartments spread out over several buildings near the upscale Granite Links Golf Club at Quarry Hills.

No one from the company could be reached Thursday or Friday, but a representative said in July that construction should start before the end of the year and that residents could begin moving in toward the end of next year.

The company has said rent will range from $1,500 for one-bedroom apartments to $2,600 for three bedrooms.

Also in Quincy, developer Mark Dickinson is moving forward with plans to build 180 luxury apartments at the North Quincy MBTA station. Dickinson signed a 99-year, $2.7 million lease with the MBTA's real estate arm to secure air rights above the station's parking lot.

He recently submitted the proposal to the Massachusetts Environmental Policy Act office, and expects to file plans with several city offices within the next two months for the five-story parking garage and 11-story apartment building at the site.

Dickinson said the current economic climate raises some concerns. He added, however, "We think we've got an outstanding location because it's at the MBTA station. We think it's one of the best locations. That will hopefully bring it out above the pack."     -  The Patriot Ledger (Quincy, MA)      27 Sept 2002

Harvard Pays $40 Mil for Three-Building Housing Complex
CAMBRIDGE, MA-Harvard University is acquiring three buildings here on Pleasant Street to develop as a 120-unit housing facility. The university plans to use the complex for its students and faculty.

According to Joe Wrinn, spokesperson for Harvard, the university is paying $40 million for the two-acre site and the buildings, which is being developed by a partnership of the Polaroid Corp. and Spaulding & Slye Colliers. The property has the approvals needed to develop the units in the three buildings. Wrinn tells GlobeSt.com that the university is currently going through the final stages in the process to acquire the property.

In a released statement, the university emphasizes that the acquisition is one of its first major purchases in the city in recent years. The university also emphasizes that the project is part of Harvard's response to the city's call to Harvard to increase housing for its students and faculty and relieve pressure on the local housing supply. As required by city law, 18 units or 15% of the development will be developed as affordable housing.

The remaining 102 units will initially be made available as rental units to Harvard faculty graduate students. Eventually, the university plans on selling the units--which will range in size from studios to three-bedrooms--to junior and senior faculty members. Because the development will be sold as condominiums, it will not be eligible for tax exemption. This program will be initiated in approximately two to three years and Harvard plans on selling roughly 10 units per year.

Harvard's 159,500-sf housing complex, which will include underground parking, will be adjacent to two new office buildings under construction on the front portion of the Polaroid headquarters site. The office buildings will buffer the residential buildings from Memorial Drive. -   By Naomi Grossman   Dec 11, 2001 
Boston Ritz Sold
Host Marriott Corp. sold its controlling interest in the Ritz-Carlton in Boston for $122 million to Millenium Partners.

Equity Office Properties, one of the city's dominant landlords in Boston's financial district, owns approximately 25% of the available 31 million sf of Class A office space. 

Deutsche Bank Realty Advisors acquired 49% of Brookfield Properties Corp landmark office towers in Boston in 4Q2000 for an estimated value of $169 million.  53 State Street and 75 State Street in Boston's financial district comprise 2.1 million sq ft and worth $685 million.  

Exchange Place 75 State Street    02109
Height	119 m	390 ft
Floors (over ground)	31
Year (end)	1988
Usable Floor Area	93,088 m²	1,002,000 ft²
Elevators	19
Parking places	685
53 State Street 02109
Height	155 m	510 ft
Floors (over ground)	40
Year (start)	1981
Year (end)	1984
Gross Floor Area	101,273 m²	1,090,103 ft²
Elevators	24

 

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