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.

Click here for a market report on Boston.

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