Jefferies LoanCore Provides $60M Mortgage for Hingham Shipyard Retail Center

By Veronica Grecu, Associate Editor

The Debt & Equity Finance team of CBRE/New England has negotiated $60 million in first mortgage financing with New York-based investment bank Jefferies LoanCore on behalf of real estate development company Samuels & Associates. According to Citybizlist, the loan will be used to secure The Launch at Hingham Shipyard, a transit-oriented shopping center located at 349 Lincoln Street at Shipyard Drive, on the former site of the historic World War II naval shipbuilding.

The Launch was designed by Elkus Manfredi and Jeff Pullman Architects as a mix of large retailers and small boutique shops to create a lively destination for visitors, residents and commuters alike. The waterfront shopping center kicked off in spring 2010 as part of a large redevelopment project of the historic Hingham Shipyard that broke ground in 2006.

Upon completion, the shopping center will include 220,000 square feet of retail space marketed by Eagle Rock Retail and anchored by 25 national retailers and restaurants such as Old Navy, Wahlburgers, Bed Bath & Beyond, Patriot Cinemas, Fresh Market and Trader Joe’s, as well as 30,000 square feet of office space.

The project also includes The Moorings, a 94-unit luxury condominium structure designed by DiMella Shaffer Architects that is currently under construction above the retail space, and an on-site parking garage with 1,500 spaces for retail customers.

Photos of The Launch at Hingham Shipyard via Eagle Rock Retail

Class A Office Building Breaks Ground in Somerville; Private Investors to Open Alcohol Distillery in Hingham

By Veronica Grecu, Associate Editor

Rockville, MD-headquartered Federal Investment Realty Trust is one building away from completing the first phase of Assembly Row, a $1.6 billion redevelopment effort in Somerville that aims to create a new, 45-acre neighborhood. According to the Boston Business Journal, the developer recently broke ground on a new speculative office facility with ground floor retail space.

Located at 450 Artisan Way close to MBTA’s new Assembly Square Orange Line Station, the four-story building is set for completion by the end of 2014. It will have three floors of Class A office space totaling 100,000 square feet, as well as 30,000 square feet of retail space that has already been leased to Brooks Brothers Factory Store, Papagayo and Legal C Bar.

Designed as a mix of retail, restaurants, entertainment, offices and residences located just minutes away from Cambridge and downtown Boston, the completed Assembly Row project (pictured) will include 2,100 apartment units, more than 500,000 square feet of retail space, and 1.75 million square feet of office space.

In further commercial real estate news, a private joint venture plans to construct an alcohol distillery in the South Shore Industrial Park in Hingham. According to Boston.com, private developers Robert Rohla of Hull will be involved in the project along with Patricia and Bradford Seeland of Scituate.

Called the Bradford Distillery, the facility would replace a 5,000-square-foot bay on Pond Park Road that the investors leased in June 2012. The city’s Planning Board will start the review and approval process on May 6 and, if approved, the small-scale manufacturing plant could start producing vodka, gin, brandy and artisan eau de vie—a brandy distilled from fermented fruits—by fall of this year.

Rendering via Assembly Row website

Schneider Electric’s Fifth Research and Development Center to Open in Andover

By Veronica Grecu, Associate Editor

Schneider Electric, a French energy technology company which employs over 130,000 worldwide, will add another facility to its network of research and development hubs which includes Grenoble (France), Bangalore (India), Monterrey (Mexico) and Shanghai (China).

The European giant is planning to consolidate all existing Massachusetts divisions in a new 235,000-square-foot research and development center in Andover, where as many as 730 employees are expected to relocate by the end of this year. As reported by the Eagle Tribune, the company plans to invest nearly $30 million in renovating an empty 160,000-square-foot office building in Andover and construct another facility of around 70,000 square feet.

Owned by Leggat McCall, a private real estate company based in Boston, the office facility (pictured) is located at 800 Federal Street and has been vacant for almost seven years. According to public records quoted by the Boston Business Journal, in 2010 Leggat paid $2.9 million for this property and another $5.6 million for another site located at 600 Federal Street. Two years later, the real estate company and Schneider Electric inked a lease agreement for the office building.

It is estimated that the new research and development center will create around 600 new jobs in Andover and attract other businesses in the town. To help Schneider Electric with this move, the township is working on a Tax Increment Financing agreement that would grant Schneider Electric a tax exemption between 5 and 100 percent of the value added to the property through new construction or significant improvement. According to the Tribune, Schneider Electric’s new research and development center will be partly financed by a $1.2 million Tax Increment Financing agreement over the next five to ten years, while the facility will generate at least $184,000 in annual property tax revenue for the town.

Image courtesy of Google Maps

Nauset Completes Rental Building in Cambridge; Developer Eyes Seaport District for Large Multifamily Project

By Veronica Grecu, Associate Editor

Nauset Construction, a real estate development company based in Needham, recently finished converting the former Holmes Building in Central Square in downtown Cambridge into 21 rental units. The $3.5 million redevelopment project was designed by The Architectural Team (TAT) for owner Central Square, LLC, and it called for interior and exterior renovations of the former C-shaped, seven-story office building located on Massachusetts Avenue.

“What made this project especially challenging was that we were working in a fully occupied building that had 24 hour retail and a dental office on the bottom floor,” said Nauset president Anthony Papantonis in a press statement.

Located within walking distance from Central Square’s Red Line Stop and close to Boston’s tech corridor—a highly sought after location for corporate housing—the 21 apartments are a much-needed addition to the area’s rental market. The renovated structure also includes a new fitness room, conference room, storage area and laundry room, as well as roof deck plazas for three units.

Meanwhile in Boston’s Seaport District, a much larger residential project could replace a vacant parcel at 399 Congress Street. According to the Boston Business Journal, in 2006 developer Madison Seaport Holdings LLC received approval to build a $100 million hotel at the site, but the plan had to be cancelled because of the recession.

The Boston Redevelopment Authority is expected to decide on Madison Seaport’s new proposal during the April 23 hearing that will be held at ADD Inc. at 311 Summer Street. Reportedly, the development plan calls for a 22-story building with 414 apartments ranging from studios to three-bedroom units and a three-level underground parking facility with 144 spaces. The project also features a 12,000-square-foot lobby with retail space, innovation space on the building’s second and third floors, and 12,600 square feet of shared-use amenity space consisting of a fitness room, media room, and a game and lounge area.

Rendering of the Holmes Building courtesy of The Architectural Team

BRA Approves $150M Housing and Retail Development in Allston

By Veronica Grecu, Associate Editor

The Boston Redevelopment Authority (BRA) board voted unanimously in favor of a $150 million mixed-use project that will redevelop a 2.67-acre parcel of land owned by Harvard University at the intersection of North Harvard Street and Western Avenue in the North Allston neighborhood.

The Barry’s Corner Residential and Retail Commons project was filed with the BRA by architecture firm Samuels & Associates back in December 2012 as a key component in revitalizing and knitting together campus and community space in this growing neighborhood.

As unveiled in the press statement by the architecture firm, the plans call for the construction of two buildings between six and nine stories totaling 350,000 square feet. Together, the buildings will contain 325 rental units, 45,000 square feet of ground floor retail space leasable by grocery stores, restaurants and coffee shops, and an outdoor open space area of 3,600 square feet. According to the BRA, 60 percent of the units will be studios and one-bedrooms, while the rest will be two- and three-bedrooms.

Also featured in the project is a below grade parking garage with 180 spaces along with 41 on-street spaces built on two streets created to facilitate access to Barry’s Corner and improve traffic flow, as well as car sharing and bike sharing services.

Samuels & Associates—which intends to seek LEED Gold certification for the Barry’s Corner project—also spearheaded the development of two other mixed-use projects, Fenway Trilogy and 1330 Boylston Street.

According to the BRA, it is estimated that this project will create 500 construction jobs and 250 permanent part- and full-time jobs.

Rendering courtesy of the Boston Redevelopment Authority

Construction is Imminent at the Former Boston Herald Site

By Veronica Grecu, Associate Editor

One year after Newton-based National Development unveiled plans to convert the former Boston Herald headquarters into a mixed-use complex, work is about to begin at the 6.6-acre site at the corner of Herald Street and Harrison Avenue.

The Boston Herald reports that an official groundbreaking ceremony was set for April 11, when Mayor Thomas M. Menino will remove a symbolic brick from the building and memories of the paper’s home for over 50 years in the South End neighborhood will be shared by Herald columnist Joe Fitzgerald. The newspaper moved its offices to a new headquarters building in the growing Innovation District in Boston’s Seaport Center in 2012, when the property known as One Herald Square was shuttered.

Ink Block, as it has been named to reflect the newspaper’s presence at the site, was designed by Elkus Manfredi Architects. National Development—which acquired the site in 2007 from Herald publisher and owner Patrick J. Purcell—will invest $200 million in transforming the property into almost 550,000 square feet of housing and retail space. The project will create 250 to 450 construction jobs and almost 70 permanent jobs.

The development project calls for the demolition of most of the former Herald building and the construction of four new buildings of four to nine stories that will add 471 housing units to Boston’s rental market. The complex will also feature 411 parking spaces, as well as 85,000 square feet of street level retail space anchored by a Whole Foods store, restaurants and other shops meant to improve the pedestrian experience in the area.

As already reported by CityPages, Ink Block will also feature a fitness center, rooftop swimming pool, cyber lounge, bicycle storage, a shared-car service and electric-car charging stations. It is estimated that 15 percent of the units will be designed as affordable.

Rendering courtesy of Elkus Manfredi Architects

Boston’s Housing Inventory to Grow by 30,000 Units by 2020

By Veronica Grecu, Associate Editor

In a speech delivered on March 25 before the Boston Municipal Research Bureau, Mayor Thomas M. Menino unveiled an ambitious plan to add 30,000 new housing units in the city by the year 2020. According to city figures quoted by The Boston Globe, nearly 24,500 new residential units designed for low-income families, college graduates, seniors, students, and homeless were permitted by the city between 1999 and 2012—most of them privately financed and valued at a combined $8.4 billion.

The “Housing Boston 2020” initiative aims to continue this positive development trend and create more housing options to attract and retain multiple demographics, especially young professionals in the 20-34 age bracket who choose to work and live in Boston.

Menino’s housing plan will involve experts inside and outside of government to work on finding the best development alternatives for a city whose housing supply has grown faster than at any time in the last five decades.

According to a recent market report by Marcus & Millichap, the past two years showed positive employment trends and above-average rents in the Boston Metro area, which paved the way for new privately financed construction projects. The report estimates that developers will complete over 4,500 apartments in 2013, more than twice the number of units completed in 2012.

Chart courtesy of Marcus & Millichap

IKEA to Expand Existing Boston-Area Store

By Veronica Grecu, Associate Editor

Swedish furniture giant IKEA is planning to expand its Stoughton, MA self-serve store by nearly 59,000 square feet, the company announced last week.

Opened on November 9, 2005 on a 27-acre parcel along Route 24 near Central Street, the Stoughton location is IKEA’s only Boston-area retail store/warehouse. With its almost 37,000 square feet of green rooftop featuring solar panels and a computer-controlled energy management system in place, the $50 million facility became IKEA’s first U.S. store to receive LEED certification from the U.S. Green Building Council (USGBC).

According to ikeafans.com, during 2006–2009 the Swedish retailer aimed to reclaim 90 percent of store waste at its U.S. locations, which meant that all new stores had to be built to a certified green building standard.

The Stoughton store currently includes 50 room-settings, three model home interiors, supervised children’s play areas, a restaurant with 350 seats and below-grade parking space. Under the company’s plans, the Stoughton facility will reach approximately 416,000 square feet. The store’s warehouse is set to increase from 111,442 square feet to 170,000 square feet, while the Self-Serve Furniture Area, the Furniture Pick-Up Area and the Home Delivery Area will also be expanded and upgraded to improve the shopping experience.

Construction at the Stoughton store will start this fall and is estimated to be completed in fall 2014 with minimal disruption during the expansion process.

Rendering of the expanded IKEA Stoughton store via BusinessWire

K-8 Public School to Replace Mitt Romney’s Former HQs in Boston

By Veronica Grecu, Associate Editor

In an effort to respond the demand for more schools in Boston’s Downtown area and allow more children to attend schools closer to their homes, city officials unveiled plans to purchase the former national headquarters for the Mitt Romney presidential campaign and transform it into a public elementary school (or a “K-8 Public School”)

The currently vacant three-story building located at 585 Commercial Street in the North End section was previously occupied by a retail showroom of Roche Bobois Furniture, according to the Boston Business Journal. Built in the early 1960s for the U.S. Food and Drug Administration—a federal aid program— the 42,000-square-foot facility was Mitt Romney’s headquarters for six years, between 2006 and November 2012.

Mayor Thomas Menino still needs the green light from the City Council to spend $12.85 million to buy the property from CrossHarbor Capital Partners and permission from the School Committee to open a new school in the area, reports the Boston Globe.

If the transaction is approved, the building would initially house several students enrolled with the Eliot K-8 School until this institution’s expansion project is completed. Renovation at the new K-8 public school within the 585 Commercial Street building is set to begin only after the Eliot K-8 School is operational at the second campus which is under construction at the North Bennet Street School. The renovated facility is expected to open by September 2006 to accommodate around 500 students in kindergarten through Grade 8 will, notes the Globe.

A final decision on the matter is expected to be announced by City Council representatives by the end of the week.

Image courtesy of LoopNet

Facebook Hunting for Office Space, Plans a Return to Boston

By Veronica Grecu, Associate Editor

Commercial real estate brokerage Newmark Knight Frank is on a mission to find around 7,000 square feet of office space for Facebook, the Menlo Park, CA-based social media giant. Founded nine years ago by then Harvard student Mark Zuckerberg, the $66 billion social media giant is looking to return to the Kendall Square area of Cambridge and be near the Massachusetts Institute of Technology (MIT) and other major tech companies such as Microsoft, Google and Nokia.

According to an exclusive story in the Boston Business Journal, the company spent some time on Stuart Street in 2005, then leased space for a year or so on Summer Street in South Boston before relocating operations to California.

Facebook has now only four employees in Boston—in a co-working facility located at 711 Atlantic Ave in the Financial District—but the company is planning to hire up to 40 new software engineers this year. With Harvard around the corner, the company’s recruiters will have immediate access to a larger talent pool of graduates for the upcoming office.

The Menlo Park campus has been the company’s headquarters since 2011; a year later Facebook announced plans to build the largest open plan office in the world on the same site, according to officebroker.com. In 2008 the company opened a shared service center in Dublin, and in 2012 the employees in London moved to a larger office in Covent Garden.

Image via Facebook

Kavanagh Advisory Group to Develop Residential, Office Space in Boston

By Veronica Grecu, Associate Editor

Danvers-based Kavanagh Advisory Group LLC has won BRA’s unanimous vote to develop a four-story residential project on a vacant site at the corner of 1^st Avenue and 9^th Street in the Charlestown Navy Yard. The 48,000-square-foot building will be marketed as “Starboard Place” and will include 36 one-bedroom apartments and 18 studios; of the 54 rental units, 11 will be designated as affordable, Charlestown Patch reports.

As the Navy Yard is a National Landmark, the $16 million project designed by BH+A Architects of Boston follows the guidelines of the Historic Monument Area design, which are in agreement with the National Park Service, Massachusetts Historical Commission, Boston Landmarks Commission, and the BRA.

The development team, which also includes BDLWT&G as business consultants, estimates that the project will create around 150 construction jobs. Construction at the former Parcel 39A will start in June, according to the Charlestown Patch.

By the end of 2013 Kavanagh Advisory Group will also start redeveloping a vacant four-acre parcel of 6 Tide Street in the Marine Industrial Park, a 191-acre industrial complex in the South Boston port area. According to the Boston Business Journal, the site housed J.J. Daly Co.’s 120,000-square-foot warehouse until 2008, when the company was shut down.

Kavanagh’s original project included a 360,000-square-foot office building, but the plan had to be scaled down because the developer failed to secure an anchor tenant. The new design calls for a 120,000-square-foot facility that would be completed by 2015.

Rendering of Starboard Place credits to BH+A Architects

BRA Approves $200 Million Residential Tower in the West End

By Veronica Grecu, Associate Editor

A development team including AvalonBay Communities, Exclusive Real Estate, Goulston & Storrs and CBT Architects has received unanimous approval for a 38-story residential high rise planned for Boston’s West End neighborhood, on an empty site between TD Garden and the Charles River.

AvalonBay Communities’ original project was filed with the Boston Redevelopment Authority (BRA) in 2005. Back then it included 363 residential units—a mix of condominiums and rental apartments—in a 572,071-square-foot tower, 270 parking spaces and 7,794 square feet of retail space. Though the BRA voted in favor, the development had to be put on hold because of economic conditions, according to the Boston Herald.

Under the revised plans, the $200 million Nashua Street Residences will total 636,551 square feet of space and will offer 503 rental apartments ranging from studios to three-bedrooms, including 27 affordable housing units. As the North Station transit hub is located near the development, the number of parking spaces was reduced to 219 (with 503 storage spaces for bicycles). The new project will also feature 3,575 square feet of retail space, which is less than half of what the development team had previously planned.

One of the redesigned features at Nashua Street Residences is a two-story retail arcade that is meant to organize and enhance pedestrian access to North Station and the TD Garden. According to the Notice of Project Change that was submitted for approval in November 2012, the arcade will provide a welcoming atmosphere for public events and will improve the use of public transportation.

Construction at the Nashua Street Residences is slated for fall 2013 and the developers anticipate the creation of approximately 650 construction jobs and 15 to 20 permanent jobs. When completed, by the end of 2016, the development will be at a minimum LEED-certifiable level and will trigger an estimated $1,75 million in annual real estate taxes.

Rendering credits to CBT Architects

Massachusetts Commits to $67 Million for 23 Affordable Housing Developments Across the State

By Veronica Grecu, Associate Editor

Keeping up with the state’s efforts to support new housing developments, the Patrick-Murray administration revealed last week it has committed $67 million in affordable housing resources and tax credits that would back 23 developments in 21 communities across Massachusetts. The announcement was made by Secretary of Housing and Economic Development Greg Bialecki, who attended an official event held at 525 Beach Street in Revere, where a 30-unit affordable housing community will be built with the support of $2.2 million in state financing.

The $67 million investment—which consists of more than $9 million in federal low-income housing tax credits, $7.7 million in state low-income housing credits and $47.7 million in state and federal housing program subsidies—is estimated to create 1,326 new housing units and more than 1,700 construction jobs.

1,164 units will be affordable to low- and moderate-income individuals and families, with 298 units designed for extremely low-income families and individuals recovering from homelessness.

“Having good, affordable housing at every level is important to our continued economic recovery, as we work to make sure we maintain our strong, well-trained young workforce,” said Secretary Bialecki in the press statement.

The announced funding is handled by the Department of Housing and Community Development and will support projects in Boston, Barnstable, Cambridge, Brockton, Chelsea, Framingham, Holyoke, Easthampton, Mashpee, Marion, Watertown, Revere, Rockport, Northampton, Pittsfield, Webster, Springfield, Williamsburg and Chesterfield and Winthrop.

According to a market report by Marcus & Millichap, new residential construction in  the Boston Metro Area is expected to climb (at least over the next three years) thanks to higher rents and a vacancy decrease of 170 basis points in the last two years.

Chart courtesy of Marcus & Millichap

Dudley Square Affordable Housing Project Awarded MassDevelopment Bond

By Veronica Grecu, Associate Editor

Two residential projects planned for Boston’s thriving Roxbury neighborhood have received $9 million in tax exemptions from MassDevelopment, the state’s finance and development agency, which issued the bond on behalf of Dudley Greenville LLC. Sponsored by Madison Park Development Corporation, the two adjacent projects will comprise 43 units of affordable rental housing as part of the Orchard Park HOPE IV initiative, a $63.5 million vibrant residential community under development in Dudley Square financed by the United States Department of Housing and Urban Development.

Dudley Greenville will be built on two parcels located near the intersection of Dudley Street and Harrison Avenue. Construction is expected to be complete in 2014, the Boston Business Journal reports. The first site, a five-story elevator building, will include a combination of 31 rental units ranging from one-bedrooms to three-bedrooms, and 3,000 square feet of ground floor commercial space. The second site will feature a four-story walk-up building with a two-bedroom unit and 11 three-bedroom units.

“This $18 million investment in Roxbury’s Dudley Square will transform two prominent vacant lots into modern buildings with 43 affordable, energy-efficient homes for low income families,” according to Madison Park Development Corporation CEO Jeanne Pinado.

A recent report issued by the U.S. Green Building Council (USGBC) and quoted by the Boston Herald shows that the state of Massachusetts reached No. 4 on USGBC’s annual list of energy-efficient and environmentally friendly buildings. With 106 green developments certified in 2012 or 2.05 square feet of LEED space certified per person, Massachusetts moved up three positions from 2011. Atlantic Wharf, a waterfront office tower, was the first skyscraper to achieve LEED Platinum in Boston.

Rendering courtesy of MassDevelopment

Chart via USGBC

Roseland Breaks Ground on $67 Million Portside at Pier One Apartment Project

By Veronica Grecu, Associate Editor

Roseland Property Company, a subsidiary of Edison, NJ-based real estate investment trust Mack-Cali Realty Corporation, broke ground on a five-story apartment project that is part of Portside at Pier One, a planned mixed-use community located at Marginal and Lewis Streets on the East Boston waterfront. Developed in a joint venture with The Prudential Insurance Company and Cranshaw Construction as main contractor, and financed by a construction loan from Citizens Bank with participation by Salem Five Bank, Phase I of the project will cost around $67 million and will include 150 market rate and 26 affordable housing units.

As reported by the Boston Herald, Portside at Pier One is one of the four East Boston waterfront projects that are in various stages of construction. The other three are:

•          Clippership Wharf – under construction by Winn Development
•          Hodge Boiler Works – developed by Philip DeNormandie
•          A New Street industrial redevelopment

Designed by a team of architects at Fort Point Associates, Inc., the Portside at Pier One master-plan will redevelop three parcels totaling 26 acres (Pier 1, Pier 5 and the East Boston Shipyard) that are owned by the Massachusetts Port Authority (“Massport”). According to a press release from Mack-Cali Realty Corporation, the master project is a 10-year Roseland-led effort which was approved by Massport in December 2012. It includes nearly 600 luxury apartments and approximately 70,000 square feet of ground floor retail and public space, activation of the water’s edge, a 7,500-square-foot recreational Marina, a fitness center, business center, theater room and controlled access garage parking.

The developer has not indicated an estimated completion date for Phase I of the project, but Roseland will oversee the leasing and management of the property.

“We are delighted to see this much anticipated project get underway. The extraordinary public and residential aspects of this community, including an expanded marina and shipyard, world class waterfront park, and magnificent views of the downtown Boston skyline, will all combine to energize the East Boston Waterfront,” Mack-Cali CEO Mitchell Hersh said in a press statement.

Rendering of Portside at Pier One courtesy of Fort Point Associates, Inc.

Wood Partners to Develop 155-Unit Luxury Community in Watertown

By Veronica Grecu, Associate Editor

Wood Partners will break ground this month on a $40 million upscale apartment community in the suburb of Watertown, just six miles northwest of Boston. The real estate investment and development company recently announced the acquisition of an 11.6-acre property located at 255 Waltham St., close to major employers such as Bright Horizons, iProspect, Staples, EMC, Boston Scientific, Genzyme, educational institutions, transportation, shops and other public spaces.

The new housing complex will include two four-story residential buildings totaling 187,000 square feet of residential space, as well as 256 parking spaces, a two-story townhouse building and a clubhouse building. The design was created by The Architectural Team, Inc. of Chelsea to reflect the area’s New England heritage, featuring brick and clapboard facades, two-storied bays and double-hung windows.

Alta at the Estate will include 81 one-bedroom units, 73 two-bedroom units and one three-bedroom unit. All apartments will feature high-end amenities such as vinyl plank wood flooring, granite countertops, and stainless steel appliances. According to a press statement from the developer, construction at the site is estimated to  be completed in 12 months with leasing scheduled for March 2014. The median household income in Watertown was $89,854 in 2011, 39 percent higher than the median household income of Massachusetts, so asking rents at Alta at the Estate are expected to be above average.

The development is estimated to generate $12.25 million in local income, $1.28 million in taxes and 189 construction jobs.

For more market data from Boston, click here.

Chart courtesy of Marcus & Millichap

Former Somerville Recording Studio Redeveloped into Sustainable Apartment Community

By Veronica Grecu, Associate Editor

Real estate development company Nauset Construction of Needham has completed a new smart-growth, multifamily community in Somerville, within walking distance of the lively Davis Square. Named Seven Cameron, the project was constructed on the site of the former Rounder Records and Fort Apache recording studios, which has been used by world-famous rock bands such as Radiohead and the Pixies to record music tracks.

As reported by the Boston Business Journal, the long-vacant property was purchased in 2010 by Cambridge developer Oaktree Development LLC for $2.96 million. Oaktree Development subsequently invested another $11 million to clean up the site and start the construction project.

The four-story transit-oriented community was designed by Somerville-based Davis Square Architects in conjunction with several architects of Oaktree Development as a LEED certifiable complex and was constructed using a combination of wood and steel framing.

With rents ranging from $2,400 to $3,000, Seven Cameron’s 37 market rate rental apartments—a mix of one- and two-bedroom units with underground parking—are almost fully occupied. Each apartment features flexible floor plans, high ceilings and energy-saving amenities such as high-efficiency heating and cooling systems, energy efficient fiberglass windows, low-VOC and formaldehyde-free interior finishes, Energy Star appliances and water-saving fixtures. Residents at Seven Cameron have access to a fitness room, a community room with kitchenette and fireplace, roof decks and extra storage spaces.

For more Boston market data click here.

Rendering of Seven Cameron via Oaktree Development LLC; chart courtesy of Marcus & Millichap

Converse to Relocate HQs on Boston’s Lovejoy Wharf

By Veronica Grecu, Associate Editor

North Andover, MA-based sneaker giant Converse wrapped up 2012 with a deal for 186,525 square feet of space in the Hoffman Building, one of the structures on Boston’s Lovejoy Wharf.

The Nike subsidiary has officially closed the transaction less than a month since developers Beal Cos. and Real Cos. unveiled plans to redevelop the area along the Charlestown Bridge in the city’s historic Bullfinch Triangle. As previously reported here, the development team will upgrade and expand the existing 11-story Hoffman Building located at 160 North Washington Street into a 241,000-square-foot office structure. A second facility located at 131 Beverly Street will also be redeveloped into a 14-story residential building with 104 condo units.

Converse will occupy all but one floor in the Hoffman Building but, according to the Boston Herald, the deal comes with a restriction that bans more than 45 shoe and clothing brands, such as Nike’s direct competitors Adidas, Reebok and New Balance, from opening stores in Lovejoy Wharf’s retail spaces.

Robert Sheehan, research vice president at commercial real estate firm KeyPoint Partners of Burlington, told the Herald that while it is very unusual that an office lease has an exclusion including retail space, the restriction can easily be explained by the fact that Converse is a retail company and the measure is only meant to protect its territory.

Click here for more market data from Boston.

BRA Approves $60M Mixed-Use Complex in Downtown Crossing

By Veronica Grecu, Associate Editor

The Boston Redevelopment Authority (BRA) unanimously voted in favor of a development project called “59 Temple Place” that will transform a pair of connected buildings on Washington Street between West Street and Temple Place in Downtown Crossing into a 135,500-square-foot complex featuring a boutique hotel, restaurant, retail space and a spa center. The approval was granted almost six months after Chicago-based real estate investment and development firm Oxford Capital Group LLC unveiled its intention to revitalize a part of Boston’s shopping district.

According to Boston.com, the developer acquired 59 Temple Place from Northland Investment Corp. for $23.2 in early 2012, with plans to transform the building into a 240-room boutique hotel with entrances on Washington Street and Temple Place.

Under plans created by interior design and architecture firm Gettys of Chicago, the $60 million project will renovate the historic Blake Building, an 11-story office facility located at 59-63 Temple Place, and the six-story Amory Building at 501-507 Washington Street, which is owned by co-developer Walton Oxford Capital Temple, LLC.

Apart from the boutique hotel, the development will feature a 4,800-square-foot restaurant, 2,800 square feet of retail space and a spa center of 1,500 square feet. The project will create 90 construction jobs and 100 permanent jobs and, once completed, it will generate around $1.5 million in property taxes and $1.4 million in City hotel taxes.

Walton Oxford Temple will donate $100,000 to The Wang YMCA of Chinatown, Boston Asian: Youth Essential Services Youth Ready for Work Program, Kwong Kow Chinese School Afterschool Program, and Asian American Civic Association Work Force Development. Also, the company will work closely with the MBTA to upgrade lighting and signage at the Downtown Crossing T stop.

The development team also includes Goodwin Procter, legal counsel; Epsilon Association, permitting consultant; Exclusive Real Estate, development consultant, and Howard/Stein-Hudson Associates, transportation consultant.

Click here for a market report on Boston.

Photo of 59 Temple Place courtesy of the Boston Redevelopment Authority

USGBC Awards LEED Platinum to South Boston’s Castle Square Apartments

By Veronica Grecu, Associate Editor

The U.S. Green Building Council (USGBC) has awarded LEED Platinum Certification, which is its highest green building rating, to a 540,000-square-foot mixed-use property in Boston’s vibrant community of South End.

In June 2012 Castle Square Apartments completed the nation’s largest Deep Energy Retrofit on an existing affordable housing community, after a complex renovation process that lasted two years. A Deep Energy Retrofit is defined as a renovation with energy savings greater than 50 percent but the retrofit work at Castle Square Apartments managed to achieve a 72 percent reduction in energy usage.

According to the property’s retrofit website, the key difference between the Castle Square Apartments renovation and standard energy efficiency renovations is insulation, which were completely lacking in the original construction plans. Located at 476 Tremont Street, Castle Square Apartments was constructed in the 1960s and is owned by Castle Square Tenants Organization in partnership with WinnDevelopment, the real estate development arm of WinnCompanies, as a minority owner. The property is a good example of affordable housing developments that were built during that time in the U.S. and which observed minimal to no energy-efficient construction techniques.

The property now features a new five-inch super insulated shell  on the outside of the building, an insulated reflective roof, high efficiency windows and extensive air sealing, all of which, when combined, have increased the building’s insulation value by a factor of ten. Additionally, small high efficiency cooling and heating equipment, LED and CFL lighting, Energy Star appliances, solar hot water systems and low-VOC paint add to the building’s dramatic energy usage reduction. Since the project was not a gut rehab but focused mainly on the implementation of isolated systems, fewer resources were used in the process and residents faced minimal disruption, without having to leave their apartments.

Castle Square Apartments includes four seven-story mid-rise buildings and 19 town house buildings with one-, two-, three-, and four-bedrooms totaling 500 housing units, 192 of which underwent the Deep Energy Retrofit.

The retrofit project was financed by a combination of private and public partnerships including MassHousing Financing Agency, HUD, Massachusetts Department of Energy Resources (DOER), Boston Redevelopment Authority (BRA), Bank of America, NSTAR, National Grid, as well as The Kresge Foundation and Enterprise Foundation. As many as 655 construction jobs were created for this project.

According to Design Cost Data, the total cost of the Deep Energy Retrofit at Castle Square Apartments was $8.18 million, or $42,593 per apartment. The redevelopment team consisted of Elton + Hampton Architects, CWC Builders, Inc. as the general contractor and Pinck & Co. which served as the construction project manager. Building Science Corporation, Petersen Engineering, Biome Studio, Rees-Larkin Development, Klein Hornig LLP, Backus Associates and Viva Consulting were also involved in this retrofit project.

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Images of Castle Square Apartments after and before renovation courtesy of www.castledeepenergy.com