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.