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USA $3.95

New England Real Estate Journal

July 29-August 4, 2016

nerej.com

SPOTLIGHT

Volume 55 ■ Issue 31

New England Real Estate Journal

Project of the Month SP / PAGES 12-13B

Integrated Builders makes headway on 135,000 s/f office renovation for Two Wells Ave., LLC

nerej.com

Section B 1031 Exchange

Brendan Greene Greater Boston Exchange Co.

July 29 - August 4, 2016 Appraiser

Spotlight Mid-Year Review

Webster Collins CBRE

Project of the Month - Pages 12-13

Architect

Attorney

Integrated Builders makes headway on office renovation for Two Wells Ave., LLC

David O’Sullivan O’Sullivan Architects, Inc.

rendering courtesy of Spagnolo Gisness & Associates

Sam Nagler Krokidas & Bluestein

This Week’s Sections Condo. Attorney

Counselor

Economic Development

Golf

Finance

ROP, Billboard

Saul Feldman Feldman Law Office

Hotel

Brett Pelletier Kirk & Company

Michael Gallerani Brockton 21st Century Corp.

Michael Chase NorthMarq Capital

Jeffrey Dugas Wellspeak, Dugas & Kane

Insurance

Maine - Investment

Maine - Office

Management

Cover Story

James O’Connell O’Connell Hospitality Group

John Torvi Herbert H. Landy Insurance

Michael Cobb Cardente Real Estate

Matthew Barney Malone Commercial Brokers

Chris Mellen The Simon Cos.

New Hampshire

Residential

Restaurant

Rhode Island

Vermont

Laura Nesmith Colliers International | N.H.

Mark Lippolt Hammond Residential Real Estate

Dennis Serpone New England Restaurant Brokers

Peter Scotti Peter M. Scotti & Assoc.

Doug Nedde Nedde Real Estate

Rendering courtesy of Spagnolo Gisness & Associates

Company of the Month NE / PAGES 8-9A

Interstate Electrical Services Corporation: Celebrating 50 Years of Excellence!

Horvath & Tremblay complete three sales totaling $8.484 million NE / PAGE 6A

Gerding Edlen develops $135m community known as The Eddy NE / COVER A

Spotlight

Mid-Year Review SECTION B

Columnist

Kenan Bigby Housing NE / PAGE 4A

Trending Articles Associated Subcontractors of Massachusetts president’s message: Politics, office style cre.nerej.com/21437 Preparing Quonset’s Port of Davisville for more growth - by Steven King cre.nerej.com/21074

Sign up for Daily RE Cap! Visit nerej.com/newsletter

Four steps to build a solution with genuine community input and support by Laura Pirie cre.nerej.com/21498

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Inside Front Cover

New England Real Estate Journal

July 29-August 4, 2016

Visit the paper online nerej.com

HIGHWOOD OFFICE PARK T E W K S B U RY, M A PA R K A M E N I T I E S

CAFE FITNESS CENTER

UP TO 15,000 SF AVAILABLE UNDER NEW OWNERSHIP BY A PREEMINENT REAL ESTATE INVESTMENT AND MANAGEMENT FIRM. Highwood Office Park offers extensive amenities and features, including: • On-site cafe •

On-site fitness center with shower and lockers facilities

•

Attractive parking On-site full service hotel with dining and conference facilities

•

HOTEL WITH CONFRENCE FACILITIES

RESTAURANTS & CHILDCARE

•

Outstanding neighboring amenities, including several restaurants, hotels and childcare options

•

New stable ownership

FOR LEASING INFORMATION: Matt Adams [email protected] 617.863.8563

Rory Walsh [email protected] 617.863.8584

KS Partners

owned& managed

New England Real Estate Journal

Quick Read Hobbs Brook Management signs Shire to 200,000 s/f office lease

Volume 55 ■ Issue 31

nerej.com

July 29 - August 4, 2016

ADD INC. IS THE PROJECT ARCHITECT AND CONTRACTOR IS SUFFOLK CONSTRUCTION Chip Batchelder from Wyman Street Advisors handled the lease for Hobbs Brook Management. Robert Richards and Brian Cohen of Transwestern | RBJ represented Shire. SEE PAGE 7A

Christie and Tito of NAI Hunneman broker $1.85 million multifamily sale

Carl Christie and Robert Tito represented the seller Kendrick Investment Corp., and procured the buyer WBC Orange Street Investments. SEE PAGE 10A

Spotlight: Mid-Year Review New England Real Estate Journal

nerej.com

Section B 1031 Exchange

Brendan Greene Greater Boston Exchange Co.

July 29 - August 4, 2016

Spotlight Mid-Year Review Project of the Month - Pages 12-13

Architect

Appraiser

Webster Collins CBRE

Attorney

Integrated Builders makes headway on office renovation for Two Wells Ave., LLC

David O’Sullivan O’Sullivan Architects, Inc.

rendering courtesy of Spagnolo Gisness & Associates

Sam Nagler Krokidas & Bluestein

Condo. Attorney

Counselor

Economic Development

Finance

Golf

Saul Feldman Feldman Law Office

Brett Pelletier Kirk & Company

Michael Gallerani Brockton 21st Century Corp.

Michael Chase NorthMarq Capital

Jeffrey Dugas Wellspeak, Dugas & Kane

Hotel

Insurance

Maine - Investment

Maine - Office

Management

James O’Connell O’Connell Hospitality Group

John Torvi Herbert H. Landy Insurance

Michael Cobb Cardente Real Estate

Matthew Barney Malone Commercial Brokers

Chris Mellen The Simon Cos.

New Hampshire

Residential

Restaurant

Rhode Island

Vermont

Laura Nesmith Colliers International | N.H.

Mark Lippolt Hammond Residential Real Estate

Dennis Serpone New England Restaurant Brokers

Peter Scotti Peter M. Scotti & Assoc.

Doug Nedde Nedde Real Estate

SEE SECTION B

3 Sections 64 Pages Editorial Page............................... 4A K. Bigby......................................... 4A Referral Network......................... 7A Company of the Month.............8-9A Thru the Lens.............................. 15A Spot/Mid-Year Review........SEC. B Project of the Month.......... 12-13-B Billboard................................ SEC. C

nerej.com

Gerding Edlen develops $135m community known as The Eddy

The Eddy, a new addition for true urban living on the waterfront, will open this fall at 10 New St. with pre-leasing that began in July. The Eddy will offer a sustainable living experience with plenty of outdoor space to experience the views of the Boston Harbor and beyond. The mix of studio, 1 and 2 bedroom apartments will have views of both urban and harbor life with meeting rooms and community spaces with art to foster creativity and innovation. Located at the tip of the waterfront at the intersection of Sumner and New Sts., The Eddy spans four-acres of waterfront property that had long been inaccessible to the public. A new waterfront park and boat landing, and a restaurant with outdoor dining is anticipated for this high demand residential property. Bike paths and walk ways, thanks to the extension of the Harborwalk, make The Eddy, East Boston the next best place to live, work and relax at the water’s edge. Gerding Edlen, a real estate investment and development firm, is the developer and has invested $135 million to create a sustainable and repurposed urban oasis. ADD Inc. is the EAST BOSTON, MA

project architect and the contractor is Suffolk Construction.The Eddy, when complete, will feature a 16-story tower and an adjacent four-story addition with access to waterfront activities and water sports. Modern day amenities for the “unscripted urbanite” include a communal chef’s kitchen, pool deck, conference rooms, and dog wash. Embracing the many attributes of the city waterfront living with an unscripted feeling of an evolving neighborhood and population, The Eddy and its public spaces will seamlessly integrate into the fabric of the community with Lo Presti Park and the Harborwalk at its front door. The 258-unit apartment complex will provide direct access to LoPresti Park, a city green space where residents and their families gather to relax, engage in water activities as well as enjoy the unmatched views of the city skyline. The smartly designed residences and its 5,000 s/f of ground-floor, publicly-accessible restaurant space, are ideally located within walking distance to public transit and the newly refurbished Maverick Sq. T as well as being accessible to the citys vibrant arts district and working shipyard.

Acentech consults on two UConn academic buildings Acentech has provided a variety of consulting and design services for two University of Connecticut (UConn) academic buildings: the Edward V. Gant Science Complex in Storrs and the UConn Health Academic Building in Farmington. These two new projects add to Acentech’s extensive portfolio of projects for the UConn system. Gant Science Complex: Prioritizing new STEM facilities within the UConn system, the university is executing on a 20-year master plan to meet the goals of the state’s Next Generation Conn. high technology investment program. The renovation of the Edward V. Gant Science Complex will address the building’s physical deterioration, update research and teaching facilities, and meet current STEM program requirements. The FARMINGTON, CT

UConn Health Academic Building Farmington, CT completed multi-phase renovation will be the first update to the 290,000 s/f structure since the 1970s. UConn HealthAcademic Building: As part of the BioScience Conn. state initiative, UConn Health received funds to renovate and expand its facilities at the Schools of Medicine and Dental Medicine. Collaborating with Centerbrook Architects on the project, Acentech is providing audiovisual systems design, architectural acoustics, and mechanical system noise and vibration control consulting. •for full story visit nerej.com•

Transwestern | RBJ’s “officeSTATus – Q2 2016” report Greater Boston’s office market, which had a slow start to the year, closed the second quarter in positive territory, according to Transwestern | RBJ’s new “officeSTATus – Q2 2016” report. The market had 12.7% vacancy on 209,000 s/f of positive absorption, while the average asking lease rate increased 55 cents to $42.50 per s/f, a new high since 2002. “It’s a very good thing to see the market pick up quarter-over-quarter, but we’ll be more interested to look at the results over the course of a year or even longer,” said Northeast research director Chase Bourdelaise. “That frame of reference provides a more accurate view of the market and puts the relatively slow first quarter into better perspective. We anticipate the positive results to continue, based on the construction pipeline and a few large leases likely to commence soon.” Highlights from the report include: • At 12.7 %, the market-wide vacancy rate has remained under 13% for seven consecutive quarters. • Vacancy in Boston’s Central Business District rose by 0.6 percentage points to 9.7%, while class A asking lease rates held steady at $54.49 per s/f. • Average class A asking lease rates BOSTON MA

in the Seaport District hit the highest recorded level at $57.44 per s/f. • In Cambridge, 37,000 s/f of positive absorption pushed vacancy down to 3.2%. • ClassA average asking lease rates in Cambridge are $62.94 per s/f and hit the low $80s in East Cambridge, while the 2 million s/f Mid-Cambridge market has only 3,000 s/f of office vacancy. • In the suburbs, vacancy and average asking lease rates remained steady at 13% and $30.80 per s/f along Rte. 128 and 21.8% and $21.26 per s/f along I-495. • The 1.6 million s/f under construction in Rte. 128 West is the highest amount in that market since 1998. In addition to “officeSTATus,” Transwestern | RBJ publishes 10 other quarterly research reports: “indSTATus,” which focuses on manufacturing, warehouse and flex property types, and individual “marketSTATus” reports on nine crucial submarkets. The firm’s biotechnology-focused report, “bioSTATus,” is released twice a year. In total, the firm produces 46 reports per year, in addition to custom research projects for clients.

New England Real Estate Journal

Inside Cover A July 29 - August 4, 2016

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Serving Northern New England since 1968

GE AVIATION PLANT ~ HOOKSETT, NH

WHOLE FOODS MARKET ~ BEDFORD, NH

B EDFORD M ALL R EDEVELOPMENT

G OODWILL ~ A MHERST, NH

DOVER HONDA ~ DOVER, NH

ASHLEY FURNITURE ~ MANCHESTER, NH

RETAIL · COMMERCIAL · INDUSTRIAL · INSTITUTIONAL · MULTI-RESIDENTIAL

Professional Services. Professional Results. Engineering: Civil, Structural, Traffic Wetlands Permitting Landscape Architecture Land Surveying Contact: Robert Duval, President or Dylan Cruess, COO TFMoran, Inc. (603) 472-4488 www.tfmoran.com Office Locations: Bedford, NH and Portsmouth, NH

Voted BEST NH Engineering Firm 4 Years in a Row!

New England Real Estate Journal

Visit the paper online nerej.com

July 29 - August 4, 2016 1A

Wessling Architects 250 Hancock Street, Suite 815N Quincy, MA 02169 (617) 773-8150 www.wesslingarchitects.com ARCHITECTURE Architectural Design Master Planning

Bidding/Contract Services Project Management Capital Needs Studies Due Diligence Expert Witness

INTERIOR DESIGN Programming Space Planning ADA Compliance Review

Rendered Drawings Materials/Finish Boards

ADA Compliance Review

BUILDING RESTORATION Capital Needs Studies City Ordinance Facade Reports Electronic Field Vector Mapping Building Forensics

PROFESSIONAL SERVICES Peer Review Expert Witness Forensic Services Master Planning Capital Needs Studies Due Diligence Studies

Contract Bidding Design Peer Review Expert Witness Due Diligence ADA Compliance Review

Westboro Executive Park BOMA Boston TOBY Award

Coddington Building Paul E. Tsongas Award

Rowes Wharf BOMA Boston TOBY Award

T.D. Garden

2A July 29 - August 4, 2016

New England Real Estate Journal

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FOR LEASE 1,000 to 4,000 SF

1.7± ACRES - LEASE - STORAGE or BUILD TO SUIT

31 Will St., Ext 5, Nashua, NH

• 2.7± Acres zoned for Industrial • Front of property has 11,200± sf industrial building with 18 ft deck (4,000± sf for lease) • Back of property has 1.7± acres available for storage or build • Entire property behind building has a 6 ft. security fence with card access electric gates and surveillance camera system.

603-765-2780

www.gatecityelectric.com

New England Real Estate Journal

Visit the paper online nerej.com

FOR SALE

July 29 - August 4, 2016 3A

COMMERCIAL PROPERTY 464, 476, 480 BROADWAY 63,352 SF ± ON 8.3 ± ACRES METHUEN, MA The Stubblebine Company is pleased to offer a unique three-building commercial property on Broadway, Methuen, MA. Currently an educational campus, the 8.33 acre site is mostly

This is the sale of a public property, and therefore is part of an RFP process, with responses paved with improved buildings and has exceptional access to I-93. due on August 19th at 10 am. For more information regarding the RFP and proposal process, Zoned Highway Business District, a wide variety of uses are allowed, including day contact James Stubblebine at• [email protected] - 617-592-3388 or care, medical clinic/offices, drive-up retail, assisted Kristin Shaver at [email protected] - (978) 685-3000 x115. living and self-storage. • Traffic counts on Broadway: 17,000 cars/day • 1.3 miles to I-93 and .5 mi. to Rt. 213

EXCLUSIVE

LISTING

AGENT

T H E S T U B B L E B I N E C O M PA N Y C O R F A C I N T E R N AT I O N A L T H E S T U B B L E B I N E C O M P A N Y I O N E C R A N B E R R Y H I L L I L E X I N G T O N , M A I P : 7 8 1 - 8 6 2 - 6 1 6 8 I F : 7 8 1 - 8 6 2 - 6 2 1 2 I W W W. S T U B B L E B I N E C O M P A N Y. C O M

476, 480 BROADWAY HUEN, MA PROPERTY COMMERCIAL 63,352 SF ± ON 83 ± ACRES

The Stubblebine Company is pleased to offer a unique threebuilding commercial property on Broadway, Methuen, MA. Currently an educational campus, the 8.33 acre site is mostly paved with improved buildings and has exceptional access to I-93. • One Highway Business District, a wide variety of uses are allowed, including day care, medical clinic/offices, drive-up retail, assisted living and self-storage • Traffic counts on Broadway: 17,000 cars/day • 1.3 miles to I-93 and .5 mi. to Rte. 213

Exclusive Listing Agent:

THE STUBBLEBINE COMPANY CORFAC INTERNATIONAL

One Cranberry Hill Lexington, MA 02421 Phone (781) 862-6168 FAX (781) 862-6212 www.stubblebinecompany.com

4A July 29 - August 4, 2016

Excellence on Every Level

New England Real Estate Journal

Housing

By Kenan Bigby

SERVING THE REAL ESTATE INDUSTRY SINCE 1963

Building an economically diverse downtown begins with Winthrop Square

16 Huron Drive ❘ Natick, Massachusetts 01760-1337 508 651 3600 ❘ www.dacon1.com

www.All-PhaseElectrical.com

All-PhAse electricAl

811 Washngton Street, Suite #5 Pembroke, MA 02359

Tel: 781-826-5300 Fax: 781-826-5377 [email protected] John Forde and John Jordan co-owners

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With Boston’s population and economy growing rapidly, it makes sense that construction in the city is booming as well. The only problem?A large percentage of the new towers and skyscrapers taking shape overnight are home to expensive condos and apartments, homes that the average Bostonian could never imagine being able to afford.As we celebrate Boston’s continued growth and development, we must also reflect on the kind of city we want to create. As Boston looks to maintain its identity as the home of innovation, a sought after destination for companies like GE, it also needs to remain affordable for those responsible for making Boston such a desirable destination. Earlier this year, the city of Boston released a report called Guiding Growth: Towards an Inclusive City as part of Imagine Boston 2030, Boston’s first citywide plan in over 50 years.The report delineated how Boston should guide positive physical change over the next 15 years, with one of the top priorities emphasized being middle income workforce housing. Of the 53,000 unit housing production goal detailed in the Guiding Growth report, 20,000 of those units are slotted to be middle-income workforce housing. Of these, 11,000 are to be “market-produced,” meaning they will not rely on direct financial assistance from the city or state. To help those units come to fruition and work towards the city of Boston’s goal for middle income workforce housing, Boston needs developers willing to build iconic buildings that do more than reinforce the “luxury only zone” that is taking shape downtown. Winthrop Sq. represents a unique opportunity to deliver on this vision. In the heart of downtown, where history and legacy meet innovation and fresh ideas, Trinity Financial’s development team is proposing a tower that will gracefully and elegantly integrate into the surrounding neighborhood

Patty Colman, x251 Publishing Director [email protected]

John Picard, x250 President [email protected]

Karen Dowell, x254 Senior Vice President [email protected]

Karen Rollins, x215 Circulation Manager [email protected]

David Denelle, x283 General Manager [email protected]

Mary Pat Baldner, x212 Subscriptions [email protected]

Ben Summers, x284 Managing Editor

David Sullivan, x210 Chief Financial Officer [email protected]

Roland Hopkins Founder & Chairman [email protected]

Phone: 781-878-4540 | Toll Free: (Outside Mass.) 1-800-654-4993

Section Publishers Billboard, Auctions, & Classified................ Karen Dowell, x254, [email protected] Connecticut ....................................................Annie McEvoy, 241, [email protected] Construction, Design & Engineering................John Picard, 250, [email protected] Financial Digest..........................................................Jeff Keller, x244, [email protected] Massachusetts ...................... Patty Stone-Colman, x251, [email protected] Northern New England ........ Patty Stone-Colman, x251, [email protected] Owners, Developers & Managers....................John Picard, 250, [email protected] Rhode Island .................................................... Karen Dowell, x254, [email protected] Shopping Centers ....................................Joanne Connolly x248, [email protected] Spotlights ................................. Patty Stone-Colman, x251, [email protected]

Section Schedules Week 1

Northern New England Owners, Developers & Managers

Week 2

Rhode Island Financial Digest

Week 3

Construction, Design & Engineering Connecticut

Week 4

Shopping Centers Spotlight

Production Staff

Jill Graham, Editor, [email protected]; Jennifer Tempesta, Editor, [email protected]; Jeanne Hardman, Art Director, [email protected]; Cindy Swider, Artist, [email protected]; Kathi Ferry, Art Specialist, [email protected]; Tuyen Pham, Billing, [email protected]; Elaine Comras, Collections, [email protected]

Tech Department Nicole Fowler, Liaison, [email protected] Corey Woods, Webmaster, [email protected]

NEREJ Events Rick Kaplan, [email protected] John Picard, [email protected]

New England Real Estate Journal

Published weekly for $139 per year by East Coast Publications 17 Accord Park Drive, Unit 207, Norwell, MA 02061 Periodicals postage paid at Norwell, MA and additional mailing offices. $4.00 Single Copy, $5.00 Special Issue. Subscriptions are non-refundable Publication #ISSN 0028-4890 | USPS #378-860 | Vol. 55, No. 31 Mailing Address: P.O. Box 55, Accord, MA 02018 Express & Overnight Mail: 17 Accord Park Drive, Unit 207, Norwell, MA 02061 Phone: 781-878-4540 | Toll Free: (Outside Mass.) 1-800-654-4993 | Fax: 781-871-1853 www.nerej.com POSTMASTER: Send address changes to New England Real Estate Journal, P.O. Box 55, Accord, MA 02018 or 17 Accord Park Drive, Unit 207, Norwell, MA 02061 REPORT AN ERROR IMMEDIATELY New England Real Estate Journal will not be responsible for more than one incorrect insertion. Disclaimer: The views expressed by contributing writers are not necessarily representative of the New England Real Estate Journal.

CONTINUED ON PAGE 10

Real estate Financing * Condominium Conversions * Construction Loans

* Interim Loans * 2nd Mortgages

* Subdivisions * Sale of Mortgages * Letters of Credit For four decades, we have participated in providing short-term commercial real estate financing. Continually, we have met the needs of our clients and have adjusted to the marketplace with creative alternatives. We offer: • Quick Response and Closings • No “red tape” • Expert loan review by real estate professionals experienced in all facets of real estate; from development to management

call Richard Bendetson at (617) 227-0893, ext 655, Samantha Bendetson, ext 691 or call Brian Sopp, ext. 663 for more information

Diversified Funding, Incorporated

63 Atlantic Avenue, Boston, Massachusetts 02110 Tel. (617) 227-0893 / Fax (617) 227-2995

Proof NE/NY REal EstatE JouRNals

New England Real Estate Journal

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July 29 - August 4, 2016 5A

2016 NEDA

Annual conference New Haven, CT September 11-13 Early Bird Deadline: Aug. 9, 2016 • www.nedaonline.org

GOLD

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We have the coolest sponsors

SILVER

New England Real Estate Journal

6A July 29 - August 4, 2016

There’s always room for speaking opportunities! You could be here!

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New England INCLUDING $5.21M SALE OF O’REILLY AUTO PARTS & DOLLAR TREE

Horvath & Tremblay complete three sales totaling $8.484 million Horvath & Tremblay continue to deliver impressive results with the sale of a trio of separate FALL RIVER, MA

O’Reilly Auto Parts and Dollar Tree - Fall River, MA Bob Horvath

Todd Tremblay

transactions along the East Coast totaling $8,484,509. The company recently completed the sale of a newly developed O’Reilly Auto Parts and Dollar Tree retail center in Fall River. Traveling down the coast they also fulfilled 2 separate 1031

Conference sponsorship or speaking information contact Rick Kaplan

781-878-4540, ext. 247, [email protected]

exchange requirements with the sale of Starbucks in Mount Pleasant, SC and McDonald’s in Jacksonville, NC. Situated on a 1.63-acre parcel along Rhode Island Ave., O’Reilly Auto Parts and Dollar Tree occupy a newly constructed built-to-suite 19,788 s/f freestanding building. O’Reilly Auto

Milford, MA

westborough, MA

Marlborough, MA

Quarry Square Pad sites : 3,000 -20,000 SF

Westmeadow Plaza 1,400 & 1,800 SF Spaces

Wayside Crossing 9,100 SF Proposed

Milford, MA

Office / Warehouse 6,800 & 10,800 SF Flex Space

Ashland, MA

3.63 Acres Available Proposed 40,000 SF Building

Framingham, MA

westborough, MA

20,000 SF on 9.63 Acres 70,000 SF Proposed

Land - Prime Development

• Exclusive Hotel Site • 100 Rooms - 1.5 Acres • 600 Ft. of Frontage on Mass Pike

Milford, MA Exclusive Hotel Site 2,000Ft. Frontage - 12 Acres Located on Rt. 16 & 495

Apartment Land for Sale Permitted for 200 Apartments - Ashland 5.2 Acres - $39,000 / Unit

FafardCommercial.com

Parts signed a new 20-year lease with 4 five-year options and Dollar Tree signed a new 10-year lease with 2 five-year options. Both leases also include scheduled rental escalations. This is a proven Dollar Tree location as they have relocated to this site from an existing retail center located down the street. Adding value to the property is the ability to add a bank ATM pad through future development. Bob Horvath and Todd Tremblay represented the seller in the sale and closed the property over list price for $5.21 million, a cap rate of 6.15%. With a successful track record of fulfilling 1031-exchanges, the company recently represented two individual exchange buyers in completing their exchange requirements. Horvath & Tremblay’s Brian Ahrens and Peter Butler procured the buyer to complete the sale of Starbucks in Mount Pleasant, closing the property at a sale price of $1,474,509, a 5.1% cap rate. Ahrens also worked exclusively with another 1031-exchange buyer to fulfill his exchange requirement transitioning into a free-standing McDonald’s in Jacksonville, for a sale price of $1.8 million, a cap rate of 4.17%.

NGKF appointed as office leasing team of 314,000 s/f mixed-use building MALDEN, MA Newmark Grubb Knight

Frank (NGKF) has been appointed as the exclusive office leasing agent for 200 Exchange St. Recently acquired by Berkeley Investments, the property is currently undergoing an extensive renovation with sizable capital improvements, to become a transit-oriented new hub for cutting edge tenants, and a new retail destination that will further enliven the growing retail and restaurant scene in Malden Center. 200 Exchange St. is a 314,000 s/f mixed-use building located directly across from the MBTA’s Malden Center station. Originally built as an operations center for Bank of Boston, the four-story property features robust infrastructure and a number of truly rare features including 16’ ceilings, abundant floor load capacity, oversized windows, massive power availability, and large, efficient floor plates.

New England Real Estate Journal

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July 29 - August 4, 2016 7A

Referral Network This Week’s Real Estate Specialist

Burlington, Massachusetts

R.J. Kelly Company 55 Cambridge Street Burlington, MA 01803 781-272-2899

BATCHELDER OF WYMAN STREET HANDLES LEASE FOR OWNER

Hobbs Brook Management signs Shire to 200,000 s/f office lease to Hobbs Brook Management LLC, a commercial property management and development firm specializing in leasing, construction and development of class A office space, Shire has signed an 10-year lease for 200,000 s/f at 95 Hayden Ave.   Chip Batchelder from Wyman Street Advisors handled the lease for Hobbs Brook Management. Robert Richards and Brian Cohen of Transwestern | RBJ represented Shire in lease negotiations and secured interim office space at 235 Wyman Street, also owned and managed by Hobbs Brook Management, for the company’s near-term growth plans. The premier 4-story office building located off Rte.128 was recently renovated to accommodate Shire and the 850 employees who will relocate to 95 Hayden Ave. The company selected this location because it was in close proximity to its other facilities. Shire’s interior renovations were designed by Jacobs Global Building Design and included general office space with associated department support, new entry lobbies, confer-

Firms appearing on this page are listed to represent the areas of activity in the New England economic region, and are available to answer your questions regarding investment, financing and/or brokerage opportunities in their area. They are willing to cooperate on all legitimate situations.

Massachusetts

New Hampshire

Southeastern MA

Londonderry

508-272-9910

Residential, Commercial and Industrial

www.baldwin-realestate.com [email protected]

Route 102, Londonderry, NH 603-432-7769 / Fax: 603-434-1545 www.tinkhamrealty.com email: [email protected]

One Park Place, Plymouth, MA 02360

LEXINGTON, MA According

Cape Cod

René L. Poyant, Inc.

95 Hayden Avenue - Lexington, MA ence and training rooms, centrally located kitchenettes, kitchen and catering facilities, dining areas, coffee bar, fitness area, and an executive

boardroom. The existing cafeteria and dining space has been completely renovated to meet Shire’s food service program. 

Butler and St. John of CBRE/NE handle sale of Lumiere Capital Markets team completed the sale of Lumiere, a 163-unit, luxury infill apartment community for an undisclosed price. CBRE/NE exclusively represented the seller, MV PARKWAYS PARTNERS, LLC, a joint venture between Criterion Property Company, L.P. and an affiliate of AIG Global Real Estate, and procured

Rhode Island

Connecticut

Connecticut

Northern Rhode Island

Cheshire

West Hartford

MEDFORD, MA CBRE/New England’s

BERETTA REALTY CO.

www.brodercommercial.com

Since 1965

SALES • APPRAISALS DEVELOPMENT (401) 724-7980 [email protected] 869 Smithfield Ave., Lincoln, RI 02865

We Cover the State 330 South Street, Cheshire, CT 06410 203-234-9000 / Fax 699-9316

43 North Main Street West Hartford, CT 06107 860-249-1540

Providence

Milford

Vermont

Post Office Square, 20F Camp Opechee Rd. Centerville, MA 02632 508-775-0079 [email protected]

Worcester

446 Main Street, Suite 2200 Worcester, MA 01608 Commercial-Industrial Div. 508-755-0707 www.kelleher-sadowsky.com

Metro West/Franklin

Independently Owned and Operated / A Member of the Cushman & Wakefield Alliance

www.ButlerRealty.us or email Jeff Butler at [email protected] Trusted Real Estate Service Since 1977

(401) 886-7800

Vermont’s Commercial Real Estate Leader Since 1987

680 Boston Post Rd. Milford, CT 06460 203-877-1345 / Fax: 203-877-6090 [email protected]

So. Windsor

Sales & Leasing Buyer/Tenant Representation Site Selection 29 Church Street, 3rd Floor, Burlington, VT 05401 802.878.9000 | www.jldavisrealty.com

CT River Valley - NH/VT

Mark F. Butler, Broker Residential & Commercial • Sales & Leasing

800-292-1102 950 Sullivan Ave., #19 South Windsor, CT 06074

[email protected]

800-542-5188

www.townandcountryrealty.com [email protected]

PROLMAN REALTY 100 Elm St. Nashua, NH

603-880-6655 [email protected]

Portsmouth

The Kane Company 603-430-4000 netkane.com

Southern NH Verani Realty COMMERCIAL SERVICES

Jeff Allaire

www.veranicommercial.com

Sales & Leasing (508) 803-5000 [email protected]

Res/Comm’l/Ind Consultants One Verani Way, Londonderry, NH 03053 800-392-2377

Burlington

Central NH

R.J. Kelly Company 55 Cambridge Street Burlington, MA 01803 781-272-2899

Western Mass.

Brenda Litchfield, CCIM

Concord Commercial, LLC 2½ Beacon Street, Suite 159 Concord, NH 03301

603-225-3200 [email protected]

Hanover/Lebanon

Arnold Peck’s

Warwick, RI

Nashua

REAL ESTATE MANAGEMENT

the buyer, an affiliate of The Guardian Life Insurance Company of America.  CBRE/NE’s multi-housing experts Simon Butler, vice chairman/partner, and Biria St. John, Vice Chairman/ Partner, exclusively represented the seller. “We are pleased to have facilitated this transaction on behalf of the seller,” said Butler.

146 Westminster Street, 2nd Floor Providence, RI 02903 (401) 273-1980/Fax 421-4207 www.hayessherry.com

TINKHAM REALTY

Tony Baldwin, CCIM

Macmillan and Son, Inc.

Commercial, Industrial, Investment Real Estate Services

McLaughry Commercial

Commercial Real Estate

1550 Main Street, Suite 104 Springfield, MA 01103

(413) 736-8338

Bruce Waters 93 S. Main St., W. Lebanon, NH 03784 603-298-8904

Andover, MA

Bedford

Form

Ron Fredette, CCIM, CIPS 138 River Rd., Andover, MA Office: 978-475-2111 Cell: 603-540-4489 Email: [email protected]

116 South River Road Same photo as New Photo NH • 603-668-7000 Bedford January 28 Deer Street Suite 301 Coldstream Office Park 175 Lincoln Street • Manchester, NH 116 South River Road • Bedford, NH Portsmouth, NH • 603-431-3001 www.nainorwoodgroup.com

Newly redeveloped 2,550+/- SF office/industrial unit New windows, natural timber columns throughout, sandblasted walls, wood ceiling and is handicapped accessible One loading dock. Lease Rate: $7.50 psf, nnn. Call Chris Norwood for details.

Several Class A office units avail for immed occup. Units vary from 911+/- SF to 2,181+/- SF, & a 3,899+/- SF stand-alone building . Units can accommodate a variety of users. Lease rates vary. Some units broker owned. For more info, call Louise or Chris Norwood.

Same photo as January

Same photo as January

Ridgewood Road & Palomino Lane Bedford, NH

225 Lowell Road • Hudson, NH

15 Constit

Several Class 1,771+/- SF to able in one of with convenie Lease rate $1 $1.50 psf for tact Perry Sn

227 Lo

1,300+/-SF bld

8A July 29 - August 4, 2016

New England Real Estate Journal

Visit the paper online nerej.com

Company of

Longevity, Reliabilty, Quality, Professionalism and Integrity

In a word: Excellence!

C

Since 1966 Interstate has built a reputation for excellence based on these five virtues. It’s what our customers have come to expect from us; and you can too.

2

We continue to build on our tradition of excellence as a family owned, employee centric company; growing our core competencies with new services such as Building Information Modeling (BIM)

B

Today, more than ever, Interstate is the company to call ... for all your projects no matter how large or small. Give us a call at 855.500.IESC or look us up on the web: www.iesc1.com

Electrical Services

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Headquarters 70 Treble Cove Road North Billerica, MA 01862

Interstate Electrical Services Regional Offices: Massachusetts | Connecticut | Maine | New Hampshire | Rhode Island | Vermont | www.i

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New England Real Estate Journal

July 29 - August 4, 2016 9A

f the Month

Construction

24 / 7 Service

Design / Build

BIM

Fire Alarm

Voice / Data

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Interstate Electrical Services Corporation: Celebrating 50 Years of Excellence!

“We talk about Interstate as a company, but it’s really a team. Interstate would be nothing without the people who contribute to our success on a daily basis. Interstate may have started out as one man’s vision, but it has grown to be what it is today – one of the largest and most successful merit shop electrical contractors in New England, based on the hard work and dedication of our team members – our employees.” Jim Alibrandi, President In July of this year, Interstate will celebrate a once in a lifetime moment, for it was 50 years ago, July 8th, 1966 to be exact, that Pat Alibrandi filed the paperwork to create a new business – Interstate Electrical Services Corporation. His vision for the company was clear; Interstate would be a company unlike others he knew; a merit driven company where employees would be respected for their skills and talents, where Founder, Pat Alibrandi initiative, attention to detail, and quality would not only be encouraged but rewarded; a company where each individual would be valued and encouraged to reach their full potential, and where innovation and customer satisfaction would go hand-in-hand. Hard work, dedication, and an unwavering commitment to the company’s founding principles quickly propelled the company to success. A new generation Jim Alibrandi, Pat’s son, joined Interstate full -time after graduating from the University of Hartford with an electrical engineering degree. He clearly shares Pat’s passion and vision for Interstate. His understanding of the industry is as deep as his commitment to Interstate’s customers and employees. Jim expanded on Pat’s original idea of a design/build electrical services company– creating an electrical design unit within the company and growing it in both size and reputation into a best-in-class, professional team of licensed engineers, design engineers, CAD, President, Jim Alibrandi and BIM experts. Jim believes in leveraging technology as a means of adding value for customers. One example is the use of 3D visualization technology or BIM. Interstate has been using the technology inhouse for nearly a decade, and today Interstate designers routinely use 3D technology for electrical design, clash detection, MEP coordination, and prefabrication of complex assemblies. Using a sophisticated laser marking tool, we are able to project position data from a 3D model on site, ensuring accuracy and streamlining the installation process. A vision for the future As Interstate celebrates its demi-centennial, the entire company is looking to the future. We have embarked on a journey of corporate-wide self-discovery. “We are asking the question “how can we do better, be better, for ourselves and our customers,” not just today but for the next 50 years, and we are involving team members from across the company in the process,” comments Alibrandi. The result of our journey will not be just policies and procedures but a fresh and ever evolving vision of excellence. Says Alibrandi, “For all of us there is nothing better than delivering a successful project - whether it’s a major construction project or an electrical upgrade or service call to an owner. To know that what we do has a positive impact on their business, it’s a great feeling of pride and accomplishment. It’s equally satisfying to see Interstate employees grow and achieve success within the company. Our customers and our employees are everything to us. It’s incredible to look back on the past 50 years and see what together we have accomplished. To all of you who have helped us get here, a heartfelt thank you, from Pat, myself and the entire Interstate family.”

New England Real Estate Journal

10A July 29 - August 4, 2016

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New England SOLD BY KENDRICK INVEST. TO WBC ORANGE ST. INVESTMENTS

Christie and Tito of NAI Hunneman broker $1.85 million multifamily sale NAI Hunneman brokered the $1.85 million sale of the 26-unit Maynard School apartment MANCHESTER, NH

Advertising Billboard Advertising 781-878-4540, ext. 251 781-878-4540, ext. 254 [email protected] [email protected] Accounting 781-878-4540, ext. 242 [email protected]

Events 781-878-4540, ext. 247 [email protected]

MEDICAL OFFICE SPACE FOR LEASE

Carl Christie

Robert Tito

complex located at 455 Union St. and 222 Merrimack St. Executive vice presidents Carl Christie and Robert Tito represented the seller Kendrick Investment Corp., and procured the buyer WBC Orange Street Investments. “The property includes several large units with high ceilings, unique layouts and off-street parking making it a nice addition for the buyer who was looking to expand their holdings in the region,” said Christie. The Maynard School Apartments is a former school converted in 1987 into a 21-unit brick apartment building located at 455 Union St. The sale also included the abutting 5-unit building at 222 Merrimack St. Headquartered in Boston, NAI Hunneman is a leading provider of commercial real estate services to corporations, institutions and the private market. NAI Hunneman is a member NAI Global, a network of independent commercial real estate firms.

Maynard School apartments, 455 Union Street & 222 Merrimack Street Manchester, NH

Building an economically diverse downtown - by Bigby CONTINUED FROM PAGE 4

and become a distinctive addition to the Boston skyline. Even more importantly, this site presents a tremendous opportunity to contribute to economic diversity in downtown Boston. Trinity’s proposal designates 40% of the residential units affordable to middle-income households, creating 258 units of housing affordable to households with incomes up to 120% of the area median income.This means housing created specifically for the middle income workforce (defined as households making between $55K and $130K annually) featured so prominently in the mayor’s plan, and represents 32% of the mayor’s goal of producing 800 unsubsidized middle-income workforce units per

year and more than 3 times the amount required by the city’s Inclusionary Zoning Policy. If we are committed to upholding Boston’s reputation as an inclusive, diverse and innovative city, we need to be ready to commit to creative solutions to get there that help promote sustained growth and success. Promoting long-term economic growth and housing for the middle class are values that we all share, and Winthrop Sq. has the potential to go a long way towards creating a lasting legacy of a more diverse, inclusive and sustainable Boston for years to come.

Kenan Bigby is managing director of Trinity Financial, Boston, Mass.

FOR SALE

49 Walnut Park, Bldg #4 Wellesley Hills, MA 02481 * Less than 1 mile from Newton Wellesley Hospital * Great parking

High-quality urban retail asset located in the vibrant city of Cambridge.

FLEXIBLE LAYOUT

STRONG CASH FLOW

PRIVATE PARKING

DYNAMIC URBAN LOCATION

DESIRABLE, AFFLUENT DEMOGRAPHICS

WELL MANAGED AND MAINTAINED

Contact Us for More Information:

CONTACT MARGARET DALTON AT 617-306-1677 FOR MORE INFORMATION NE NY Tel: 781-878-4540

303 Congress Street Boston, MA 02210 617.457.3400 www.NAIHunneman.com

ROBERT TITO Executive Vice President 617.457.3231 [email protected]

GINA BARROSO Assistant Vice President 617.457.3261 [email protected]

New England Real Estate Journal

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July 29 - August 4, 2016 11A

2016 SU MMI T

Construction Trends of the Future August 10, 2016

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Contact Rick Kaplan, 800-654-4993, ext. 247, [email protected], Register at www.neconstruction.eventbrite.com

New England Real Estate Journal

12A July 29 - August 4, 2016

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New England NEW 14,000 S/F FACILITY OPENED ON JUNE 15

LAN-TEL Communications opens new headquarters in Norwood On June 15, LANTEL Communications, Inc. celebrated the official opening of their new 14,000 s/f headquarters facility. The ribbon-cutting event was attended by state and local officials, including Massachusetts state representative John Rogers and state senators James Timilty and Michael Rush, as well as electrical industry leaders, and vendor representatives from leading security and telecommunications industry companies. LAN-TEL is among the largest and most prominent integrated communications and security system installation companies in New England. A member of NECA Boston Chapter for 25 years, NORWOOD, MA

LAN-TEL provides low-voltage solutions to prominent public and private facilities throughout the greater Boston region. The company currently employs a staff more than 100, including a highly skilled field crew of IBEW technicians, project managers and operations personnel. Founded by CEO Joe Bodio in 1992, LAN-TEL’s move into its new offices comes in the firm’s 25th year. Bodio is currently the Governor of NECA Boston, having previously served as the chapter president.

Brokers / Developers / Managers of Commercial Properties 200 Silver Street, Agawam, MA 01001

413.789.3720

www.devassociates.com

Sheldon Good & Co. to hold auction August 23 BAR HARBOR, ME Sheldon

45 Industrial Drive, East Longmeadow, MA 82,080 sf Manufacturing/Warehouse located in East Longmeadow Industrial Park. Clean, flexible open 24' clear mfg/whse. area with 9 docks plus drive-in door. Fo

rS

ale

102 First Avenue, Chicopee, MA

80,040 sf Industrial/Flex space strategically located at junction of Mass Pike and I-291. Ideal for mfg/distribution. 5 dock doors plus recessed side-load dock. 17' clear height. Pr

or

e-L

Le

711 East Main Street, Chicopee, MA

ea

as

sin

e

86,800 sf Class A Industrial/Manufacturing. Includes 22,000 sf executive/general office space. Features 12-ton crane, 3000A electrical service with high-image interior and exterior finishes.

23 Atwood Drive, Northampton, MA

Construction to commence with pre-leasing 2,000-60,000 sf brand new, build-to-suit offices in Class A Professional/Medical Office Building. Easy access, just off I-91 at Exit 18.

g

Good & Company Luxury Real Estate (America’s Real Estate Auctioneer) will conduct the auction of a luxury single-family home on Mount Desert Island.  A modern study of contemporary design, the 10,000 s/f residence located at 30 Strawberry Hill Rd. offers unparalleled 360-degree views of Maine’s ocean and mountain terrain.  The home is guaranteed to sell at or above $2.9 million. Designed by Architect James Walter Schildroth, the four-level home features a unique origami-inspired exterior and nature inspired interior elements. Bordering Acadia National Park, the residence overlooks the Frenchman Bay, the Atlantic Ocean, Cadillac Mountain and Champlain Mountain, while nestled just minutes away from downtown Bar Harbor and the historic Kebo Valley Golf Club. The home features five en-suite bedrooms, 5.5 baths, an elevator, natural split rock fireplace and eight decks to take in its stunning surroundings from various panoramic views. Sheldon Good & Co. will hold open houses Saturdays, July 30; August, 6, 13, and 20 from 11 a.m. to 1 p.m. The auction will be held on Tuesday, August 23. •for full story visit nerej.com•

New England Real Estate Journal

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July 29 - August 4, 2016 13A

Thru the Years Sponsored by: Free Daily RE Cap e-newsletter delivered daily to your inbox! New England Real Estate Journal

Quick Read MassHousing preserves affordability of Briston Arms with $45.1m loan

Volume 54 ■ Issue 31

nerej.com

July 31 - August 6, 2015

GRIFFIN, MAHER AND PULLEN OF CUSHMAN & WAKEFIELD BROKER OFFICE SALE

1 Year Ago

Low-income families and senior citizens living in the 154-unit property will see property improvements. SEE PAGE 6A

Avison Young facilitates $2.9m sale of 6 Merchant St. for Legacy R.E.

Rockpoint Group purchases 75-101 Federal St. for $326.5m BOSTON, MA Cushman & Wakefield has completed the sale of 75-101 Federal St. to Rockpoint Group for

Robert Griffin Michael Smith, Scott Jamieson, Brandon Dickason and Bill Sullivan of Avison Young arranged the sale of the building. SEE PAGE 10A

Spotlight: Mid-Year Review New England Real Estate Journal

nerej.com

Section B 1031 Exchange

William Lopriore First American Exchange Co.

July 31 - August 6, 2015

Spotlight Mid-Year Review Project of the Month - Pages 12-13

Appraiser

Accounting

David Sullivan DiCicco, Gulman & Co. LLP

Architect

Campanelli Const. works on 250,000 s/f warehouse and distribution center for Victory Packaging

David O’Sullivan O’Sullivan Architects, Inc.

Webster Collins CBRE

Counselor

Economic Development

Saul Feldman Feldman Law Office

David Kirk Kirk & Company

Michael Gallerani Brockton 21st Century Corp.

Hotel

Insurance

Insurance - Small Business

Investment

Maine

Earle Wason Wason Associates

John Torvi Herbert H. Landy Insurance

Curtis Whitney J.M. Whitney Insurance, Inc.

Chuck Leitner Berkshire Group

Matthew Barney Malone Commercial Brokers

Multi-Housing

New Hampshire

Residential

Restaurant

Vermont

Rich Cawley United Multi Family

Bill Norton Norton Asset Management

Mark Lippolt Hammond Residential Real Estate

Dennis Serpone New England Restaurant Brokers

Doug Nedde Nedde Real Estate

Commercial Lender

Sidney Spiegel NE Moves Mortgage

Condo. Attorney

Finance

Michael Chase NorthMarq Capital

SEE SECTION B

3 Sections 64 Pages Editorial Page .............................. 4A J. Avery ......................................... 4A Project of the Month ...............8-9A Referral Network ...................... 11A Sales & Leases.......................... 13A Spot/Mid-Year Review .......SEC. B Project of the Month ...........12-13B Billboard................................SEC. C facebook.com/nerejournal twitter.com/nerej youtube.com/NEREJOURNAL nerej.com printed on recycled paper

25 Years Ago

Newsletter

Edward Maher

$326.5 million. The Cushman & Wakefield team, led by president Robert Griffin, vice chairman Edward Maher and executive director Matt Pullen, oversaw the transaction of the two interconnected trophy office buildings on behalf of a joint venture partnership led by Pearlmark. Totaling 818,231 s/f, 75-101 Federal St. comprises two buildings rising 21 and 31 stories, respectively, which are unified by a main lobby. The property is currently 84% leased to a tenant roster anchored by HQ Global Workplaces, Wells Fargo, Sherin & Lodgen, Willis of Massachusetts and Ironshore Insurance. “75-101 Federal St. is a distinctive feature on Boston’s skyline and one of the city’s most recognized business addresses,” said Maher. “Its efficient

floor plates, plentiful on-site amenities and great views, combined with its convenient location in the heart of Downtown Boston, make it an exceptional asset for tenants and investors alike.” A recent study leveraging Cushman & WakeMatt Pulen field’s research reveals the competitive advantages of companies that are increasingly moving to America’s CBDs—it’s key finding: the war for millennial talent and the vitality of downtown neighborhoods is driving commercial real estate in a way that’s never occurred before. 75-101 Federal St. benefits from more than $7 million in recent capital improvements, including lobby, façade, garage, common area, HVAC, roof and elevator upgrades. The property’s extensive on-site amenity package includes a B/SPOKE indoor cycling studio, The Bar Method barre studio, a full-service Santander Bank, Bush Cleaners, David’s Instant Shoe Repair and shoe shine stand, Martin’s News sundry shop, underground parking, FedEx services, Starbucks and Café de Boston.

Bonfanti of United Multi Family brokers sale of Ocean Park apts. for $1.625 million BRIDGEPORT, CT United Multi Family (UMF) brokered the sale of the Ocean Park apartments located at 810 Atlantic St., located across the street from Sea Side beach and park and walking distance to the University of William Bonfanti Bridgeport. The sale was handled by William Bonfanti of the Connecticut office. The property was sold by NNM, LLC to 810 Atlantic Apartments LLC for $1.625 million ($67,708 per unit) with financing provided by Fairfield County Bank.

810 Atlantic Street - Bridgeport, CT The brick residences were built in 1981 and comprised of 24 one-bedroom units in a four story brick elevator building with covered parking for each unit. The CAP rate at the time of sale was 6.56% with the property having a gross annual income of $225,360.

10 Years Ago

75-101 Federal Street - Boston, MA

Parsons Commercial Group expands and launches affiliation with Sperry Van Ness International According to Parsons Commercial Group, Inc., (PCG) based in Framingham, Mass., the company has confirmed its affiliation with Sperry Van Ness International Corp. (SVNIC), a national commercial brokerage firm.The newly John Parsons named SVN | Parsons Commercial Group | BOSTON is owned and operated by John Parsons, Jr., chief executive officer and managing director. Parsons has built one of the top brokerage and property management firms within the suburban Boston market and has now affiliated with SVNIC to expand his firm, knowledge base and national reach. Parsons said, “We wanted to align ourselves with an entrepreneurial and recognizable firm. We also wanted to work with a firm that had a national platform and encourages collaboration. The tools, the platform and the support that is available, provides us with the utmost confidence that we can expand our footprint in the Boston commercial real estate arena. The Sperry Van Ness organization provides the training and

BOSTON, MA

technology that is second to none in the commercial real estate services business.The most compelling reason to join SVNIC is the almost 200 plus offices and over 1,300 commercial advisors and staff who are all skilled professionals and anxious to work in a cooperative manner to service our clients. SVNIC’s mission and vision of collaboration with all brokerage professionals fits in line with the way we have always conducted business. Our relationships with our counterparts have always been strong, resulting in many successful transactions.” SVN | Parsons Commercial Group | BOSTON will bring over 28 years of experience. The company is a leading provider of commercial real estate services in the suburban Boston markets including: leasing (tenant and landlord representation), investment sales, multi-family acquisitions, property management and development. Product types include: office, industrial, land, multi-family and retail.The firm also currently owns and manages a portfolio of over 2 million s/f of commercial and multi-family properties in Mass. and the Carolinas, as well as several residential sub-divisions now under development in the western suburbs. •for full story visit nerej.com•

45 Years Ago

To start receiving the RE Cap e-newsletter visit www.nerej.com/newsletter

Newsletter

New England Real Estate Journal

14A July 29 - August 4, 2016

New England

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Only 139 clams a year.

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WITH MARGULIES PERRUZZI ARCHITECTS ON 308,954 S/F BLDG.

The Davis Cos. completes capital improvements at One Cabot Road The Davis Companies (TDC) has completed a substantial capital improvement program at One Cabot Rd. One Cabot Rd. is a four-story, 308,954 s/f building, four miles from Boston. TDC’s capital improvements have transformed the building into a modern, dynamic environment with high-end amenities designed to enhance the tenant experience. One Cabot Rd. is walking distance from Wellington MBTA Station with immediate access to the MBTA’s Orange Line, Commuter Rail and local bus lines, and is in close proximity to the AC Hotel by Marriott and a wide variety of restaurants and retail amenities. TDC acquired One Cabot Rd. in 2015 with a plan to revitalize the building. Working with Margulies Perruzzi Architects, TDC has re-imagined the building to offer a new entrance with additional visitor parking access; a fully renovated two-story common area that functions as both a main lobby and a lounge area; refurbished elevator cabs and common areas to reflect the lobby aesthetic; a re-energized 10,333 s/f cafeteria with new lighting, seating and game space; an updated fitness center, complete with locker rooms and showers; and an activated 10,000 s/f outdoor patio featuring expansive city views and comfortable year round seating and gas heaters, which is centered around an outdoor fire pit and game space. In total, the amenity space consists of 17,500 s/f. MEDFORD, MA

A one year subscription includes: • The 52 year old New England Real Estate Journal delivered. • Access to the digital edition on nerej.com. • The Daily RE Cap newsletter which covers New England sales, leases, mortgages, construction and many activities linked to the multi-trillion dollar industry.

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One Cabot Road in Medford, MA

O’Connell of O’Connell and Co., Inc. represents seller in $625,000 unit sale O’Connell and Co., Inc. Commercial and Industrial Real Estate, completed the sale of 43-45 Loring Dr., Unit 4. The industrial condo unit consists of 7,081 s/f of office and warehouse with 2 rear loading doors. Frederick O’Connell, president of O’Connell and Co. was the exclusive agent represented the seller, Belleville Realty Holding Corp. of Kearny NJ. Scott Hughes, president of New Dover Associates, Inc. represented FRAMINGHAM, MA

43-45 Loring Drive - Framingham, MA the buyer, 43-45 Loring Drive LLC. The recorded selling price was $625,000.

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July 29 - August 4, 2016 15A

Thru the Lens Joyce and Bill Cummings address the crowd at the $100K for 100 reception at TradeCenter 128 on June 9. Cummings Foundation awarded grants of $100,000 to 100 charities, all located in Greater Boston, through its “$100K for 100” program. With the conclusion of this grant cycle, the Woburn-based Foundation has now awarded more than $140 million to local nonprofits. The organizations were chosen from a total of 479 applicants, during a competitive review process. The $100K for 100 program supports nonprofits that are not only based in but also primarily serve Middlesex, Essex, and Suffolk counties. This year, the program is benefiting 41 different cities and towns within the Commonwealth. Forty-five grant winners are located within the city of Boston, and the remainder are in the suburbs north and west of the city. Through this place-based initiative, WOBURN, MA

Cummings Foundation aims to give back in the area where it owns commercial buildings, all of which are managed, at no cost to the Foundation, by its affiliate Cummings Properties. Founded in 1970 by Bill Cummings of Winchester, the Woburn-based commercial real estate firm leases and manages more than 10 million square feet of space, the majority of which exclusively benefits the Foundation. About 300 guests gathered at a festive June 9 reception atTradeCenter 128 to celebrate this $10 million infusion into Greater Boston’s nonprofit sector. The attendees included representatives from all 100 grant-winning organizations, foundation staff, local public officials, and community leaders who volunteered on the Foundation’s Grant Selection Committees.

Shown are The Cooperative Bank executives and employees volunteering at the Corrib 5k WEST ROXBURY, MA The

Cooperative Bank (TCB), a full-service community bank specializing in commercial real estate and business lending throughout Eastern Mass., served as the main sponsor of the 23rd Annual Corrib Classic 5K Road Race & Kids Fun Run at Billings Field on June 5. This year’s race supported by

TCB’s volunteers and sponsorship featured over 1,600 runners, included a post-race cookout celebration, and a trophy presentation for top division finishers. The Corrib 5k since its inception in 1994 has raised over $1 million to support worthwhile West Roxbury charities and community groups.

The Corrib Road Race is one of the premier “fun runs” in the Greater Boston area and is designed to provide an opportunity for runners of all abilities to experience a fun and challenging experience. The race is hosted by the Bligh family of the Corrib Pub and Restaurant and benefits the Corrib Charitable Trust, Inc. Union, was named this year’s Honorary Chair and will join Event Chair Jill Teeters, 2014 National Ambassador Mom, in leading the Signature Chefs Auction. Together they focus on recruiting New Hampshire establishments and philanthropists to participate, procure unique auction items, promote the event and share their mission story to motivate and inspire giving in support of the March of Dimes mission.

Shown (from left) are: Jim Whiffen, John Worcester, Eric Grenfell-Muir, Chandra Comfort, Tom McArdle, Ed Arons, Jack Crowley ANDOVER, MA The Northeast Chapters

of Foodservice Consultants Society International (FCSI) and Manufacturers Agents for Foodservice Industry (MAFSI) celebrated their 43rd annual golf outing and reception on June 6. The charitable event, held at Andover Country Club, welcomed 134 participants, an additional 21 dinner attendees and 81 tee sign sponsors,

generating a total of $16,550 for the Boston Rescue Mission. “Boston Rescue Mission is grateful and honored to have the attention of both FCSI and MAFSI,” said manager of information, Eric Grenfell-Muir as he accepted the donation. In addition to offering warm meals and a safe place to sleep, the Mission actively participates in food recovery in and around Boston.

New England Real Estate Journal

Michelle O’Malley, March of Dimes, executive division director, N.H. & VT Divisions (left) and Jill Teeters (right) present Michael L’Ecuyer, with his Honorary Chair Plaque at the Signature Chefs Auction kickoff event held at The Copper Door in Bedford, NH on June 14. BEDFORD, NH On Tuesday, October 11,

March of Dimes will host a special night of giving to improve the quality of life for N.H. mothers and their babies. The evening will feature local culinary talent serving signa-

ture dishes at Manchester Country Club, along with exclusive, exciting custom-created live and silent auction packages. Michael L’Ecuyer, president and CEO, Bellwether Community Credit

“Maternal and child health care are of utmost importance and essential in helping to end preterm births,” said L’Ecuyer. “In the United States, one baby is born prematurely every minute. Through research, advocacy and education we can help lower premature birth rates and reduce the risk of some birth defects. It is our goal to provide every mother with a fighting chance at having full-term pregnancies and healthy babies.” The event begins at 5:30 pm at Manchester Country Club, 180 S River Rd., in Bedford. Sponsorship opportunities are available.

Professional Profiles

100s of archived profiles and photos since 1960. Research your potential clients! nerej.com/professional_profiles

New England Real Estate Journal

16A July 29 - August 4, 2016

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July 29 - August 4, 2016 17A

Commercial Investment Real Estate Training Qualified Massachusetts CE Credits Live Lecture or Online Options Available Online Video Option ✔ Watch as much or as little in one sitting. Our system keeps track of your progress so you don’t have to. ✔ Highest quality, high energy and engaging videos

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246 East Main Street, Norton MA 02766 508.332.5111 NewEnglandRealEstateAcademy.com

See Jeanne https://www.youtube.com/watch?v=lTkCz2lOzpw Listen to Jeanne www.nerej.com/radio/2014-07-31

New England Real Estate Journal

Back Page A July 29 - August 4, 2016

F S 4 ,66

14

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nin i a m

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8,25

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Former NASDAQ reserve trading floor

Minutes from Boston, conveniently located at the junction of I-93 and I-95 Suite Features • Expansive window line • Build-to-suit opportunity • Ample free on-site parking • 1200 AMP, 120/208 volt, 3-phase electrical service • Business neighbors include AllState Insurance, Bank of America, Molex, Skanska, and Textron

Building Location • Prominent Washington Street, Woburn location at intersection of I-93 and I-95. Minutes from Boston. • MBTA bus on site. Logan Express and commuter rail minutes away at Anderson Regional Transportation Center. • Full-service leases include custom buildouts, structural and mechanical maintenance, common area maintenance and cleaning, landscaping, parking, snow plowing, and property management services. • On-site amenities include restaurants, a dry cleaner, and many personal and business service providers including Starbucks, FedEx Office, W.B. Mason, Subway, and UPS Store.

For leasing information, contact Ed Silvey at 781-932-7039 or [email protected]

781-935-8000

CummingsProperties.com

New England Real Estate Journal

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Section B 1031 Exchange

Brendan Greene Greater Boston Exchange Co.

July 29 - August 4, 2016

Spotlight Mid-Year Review Project of the Month - Pages 12-13

Architect

Appraiser

Webster Collins CBRE

Attorney

Integrated Builders makes headway on office renovation for Two Wells Ave., LLC

David O’Sullivan O’Sullivan Architects, Inc.

rendering courtesy of Spagnolo Gisness & Associates

Sam Nagler Krokidas & Bluestein

Condo. Attorney

Counselor

Economic Development

Finance

Golf

Saul Feldman Feldman Law Office

Brett Pelletier Kirk & Company

Michael Gallerani Brockton 21st Century Corp.

Michael Chase NorthMarq Capital

Jeffrey Dugas Wellspeak, Dugas & Kane

Hotel

Insurance

Maine - Investment

Maine - Office

Management

James O’Connell O’Connell Hospitality Group

John Torvi Herbert H. Landy Insurance

Michael Cobb Cardente Real Estate

Matthew Barney Malone Commercial Brokers

Chris Mellen The Simon Cos.

New Hampshire

Residential

Restaurant

Rhode Island

Vermont

Laura Nesmith Colliers International | N.H.

Mark Lippolt Hammond Residential Real Estate

Dennis Serpone New England Restaurant Brokers

Peter Scotti Peter M. Scotti & Assoc.

Doug Nedde Nedde Real Estate

Inside Cover B July 29 - August 4, 2016

New England Real Estate Journal

Spotlight/Mid-Year Review

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Celebrating the Past, Welcoming the Future. As Dacon Corporation celebrates this milestone anniversary, its principals are grateful to all who have shared in the company’s long history of growth, development and success.

Design/Build | Solution Driven

Anniversary

Dacon Corporation ❘ 16 Huron Drive, Natick, Massachusetts, 01760-1337 508 651 3600 ❘ www.dacon1.com

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Spotlight/Mid-Year Review

New England Real Estate Journal

July 29 - August 4, 2016 1B

CREATIVE SOLUTIONS FOR REAL ESTATE FINANCING NEEDS

LocaL & RegionaL expeRtise:

Since 1994 the Commercial Division has been involved in arranging financing for Real Estate related transactions.

can Finance any pRopeRty stRuctuRe:

Property types include: condominium construction, single family subdivision, office, retail, assisted living, hotel & specialized properties.

ReLationships aRe the Basis oF ouR Business: Whether it is relationships with our capital sources or with our clients, we are constantly striving to improve our dealings.

Recently Closed Transactions $18,600,000

10 Unit Condo Construction Project Seaport District Boston, MA

$1,500,000

Refinance Loan Mixed Use Building Hyde Park, MA

$1,600,000

Construction Loan 20 Unit Condominium Project Dorchester, MA

$1,000,000

Pre-Development Loan Historic Rehab Project West Warwick, RI

Sid Spiegel

Vice President - Commercial Division Phone: 1-856-917-9268 [email protected] 400 Fifth Ave., Suite 500, Waltham, MA 02451

New England Real Estate Journal

HAYNES MANAGEMENT, INC.

2B July 29 - August 4, 2016

Spotlight/Mid-Year Review

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- DISCOVER -

ROUTE 128 LEXINGTON & WELLESLEY

LANDMARK BUILDING 16 Laurel Avenue, Wellesley Hills

30 Washington Street, Wellesley Hills

ENTIRE BUILDING AVAILABLE 1040 Waltham Street, Lexington

FLEXIBLE SPACE OPTIONS 110 Cedar Street, Wellesley Hills

CHARLES RIVER VIEWS

781-235-4300 www.haynesmanagement.com

Spotlight/Mid-Year Review

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New England Real Estate Journal

July 29 - August 4, 2016 3B

1031 Exchange

Structuring an individual partner’s 1031 exchange through the “Drop and Swap” method Brendan Greene

Greater Boston Exchange Co. The continuing strong real estate market in the Greater Boston area and throughout New England has given investors substantial equity in their properties subjecting them to higher capital gains taxes on the sale of such properties. Consequently, more investors, both U.S. and foreign, are using 1031 tax-deferred exchanges in order to defer paying capital gains taxes. Internal Revenue Code (IRC) Section 1031 provides “No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment.” We are frequently asked whether partners in a partnership (typically members of a limited liability company) can enter into a 1031 exchange transaction to defer the capital gains tax on their percentage interest in the partnership when other partners just want to sell and pay their individual taxes. Section 1031 specifically excludes partnership interests as assets which can be exchanged. As a result, in order to allow individual partners to exchange, the transaction must be very carefully structured. There are a number of structures used to do this and the most common structure is the so called “drop and swap”. In a typical “drop and swap”, the partner first drops out of the partnership by accepting a deed for a tenant in common interest in the property equivalent to the percentage interest in the partnership, and the partner then exchanges or “swaps” the tenant in common interest in the property for a replacement property. There are a number of tax considerations and other factors which must be addressed to properly structure a “drop and swap”. In order for property to be exchanged, it must have been held by the taxpayer for use in a business or for investment. The IRS has challenged and disallowed exchanges where the timing of the drop is very close to the swap or exchange. The argument of the IRS is that the property was not “held” for a significant enough period of time to be considered held for investment purposes. Therefore, the longer the tenant in common interest is held prior to the sale and exchange, the better the chance is of having a successful exchange.

There are also reporting requirements under Partnership Tax Form 1065 that went into effect in 2008, which require a partnership to report a distribution of a tenant in common interest to a partner. As such, it is better tax practice to convey out to the partner in a tax year prior to the year in which the sale of the property takes place in order to enhance the holding period requirement. Additionally, the IRS has successfully argued in many cases that if property held in tenant in common ownership has the attributes of a partnership, the tenancy in common ownership will continue to be considered a partnership and would disqualify an exchange by “drop and swap”. The degree of continuing management by the holder of a tenant in common

In a typical “drop and swap”, the partner first drops out of the partnership by accepting a deed for a tenant in common interest in the property equivalent to the percentage interest in the partnership, and the partner then exchanges or “swaps” the tenant in common interest in the property for a replacement property. interest in the property is probably the biggest factor in a long list of factors that the IRS uses to determine what constitutes de facto partnership. The least amount of management by the co-owners is recommended to avoid designation as a de facto partnership. Co-owners should consider appoint-

ing a single co-owner as management agent for the group or hire an outside management company. For other various reasons, tenant in common agreements should be entered into to spell out the respective rights and obligations of the tenants in common. The IRS provides guidance

on these agreements in the form of Rev. Proc. 2002-22. These agreements are helpful in rebutting the argument of a deemed partnership. The technique of “dropping” an interest to a partner in the form of a tenant in common ownership of title to the property and then “swapping” that interest is constantly evolving. As such, there are several important planning steps that can be taken in order to structure the exchange transaction with the best chance to survive a challenge by the IRS.

Brendan Greene, Esq. is the co-owner and co-operator of the Greater Boston Exchange Company, LLC (a subsidiary of McCue, Lee & Greene, LLP), Boston.

585 Boylston Street, 4th Floor Boston, MA 02116 (617) 236-5181 (Tel.) (617) 236-0797 (Fax) TOLL FREE 1-877-423-1031 www.greaterboston1031exchange.com For information, please email us at [email protected]

Greater Boston Exchange Company, LLC was established in 2000 by Attorneys Brendan J. Greene and Mark A. McCue, and is an ancillary business of the law firm of McCue, Lee & Greene, LLP. GBEC is owned and operated by attorneys with over 40 years combined experience in real estate and tax law. Our attorneys are trusted advisors to CPAs, attorneys, residential and commercial real estate brokers and investors, mortgage lenders and other professionals.

4B July 29 - August 4, 2016

Spotlight/Mid-Year Review

New England Real Estate Journal

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Appraiser

Observations on Boston’s industrial markets: A temporary slow down or a recalibration? Webster Collins

CBRE Boston’s industrial market cycles have proven to be very long. The market struggled for 13 years with vacancy rates of 18.8% to 25%. It was not at all unusual for an industrial property to take two years to lease. Tenants who leased would expect two months free rent on a five year lease and turnkey build out for their use. It would not be at all unusual for up front costs to equal one year’s rent.

BOSTON

HARTFORD

Gradual absorption took place between 2010 to 2013 where vacancy rates were worked down to under 15%. 2014 and 2015 were record years with strong absorption moving vacancy rates below the magic 10% number. A long held belief exists that 10% is a benchmark vacancy rate. New construction is expected to start when vacancy drops below 10%. Q1 2016 – A Strong Start The Greater Boston industrial market continues its 2014 to 2015 momentum into 2016. As shown in the attached table, Q1 2016 produced 1,298,964 s/f of absorption. With limited new construction taking place, vacancy dropped to 9.2% in one quarter alone. Rents which in 2012 were at $6.22 per s/f were rising

MANCHESTER

and at $6.93 per s/f were up a healthy 11.4%. The Rte. 128 South market was the strongest of all submarkets

NEW HAVEN

PORTLAND

with 797,747 s/f of absorption representing a 61% market capture in an eleven sub market industrial sector.

PORTSMOUTH

PROVIDENCE

VALUATION & ADVISORY The Valuation & Advisory Services Group of CBRE/New England provides the widest range of real estate and urban economic consulting services to corporate, institutional and public sector clients throughout the region.

OUR MISSION is to provide leading-edge appraisal and consulting services to a broad base of local, regional and national clientele.

OUR TEAM includes the highest level of professional experience with such designations as MAI (Member of the Appraisal Institute), CRE (Counselor of Real Estate) and FRICS (Fellow, Royal Institution of Chartered Surveyors).

OUR PLATFORM as part of CBRE, the world’s largest full-service real estate company, provides exclusive access to an unparalleled network of top professionals, state-of-the-art technology and best-in-class practices.

For more information, please call +1 617 912 6960

CB Richard Ellis – N.E. Partners, LP, a CBRE Joint Venture

BOSTON

Harris Collins, MAI, CRE, FRICS • James Moore • Webster Collins, MAI, CRE, FRICS • Steven Kaye, MAI, CRE • John Davis, MAI Matthew Wood • Mathew Santos • Alex Farmer • Shelly D’Aleo • Rachel Goldberg • Karin Brown • Kimberly Katz HARTFORD

Louis Pellegrino, MAI • Timothy Mitchell • Diane Mazzatto • Joshua Koladis, MAI • Emily Ricketson

www.cbre-ne.com

Q2 2016 – A Temporary Slow Down or a Recalibration? Markets ebb and flow, and in our relatively small market, a few deals or vacancies can move the needle. The second quarter slow down can be attributed to a few market elements, not to mention the typical slowdown seen in summer months. However, Boston did witness a few recent consolidations from M&A activity as well as employment of new distribution strategies. Q2 2016 average asking rents slipped to $6.84 per s/f and absorption was 222,291 s/f, 17% of Q1 2016’s absorption. While some evidence may suggest a slowdown, other data suggest a pause in the action as the Greater Boston Industrial market continues to be supply constrained for large users. Q3 2016 – What the Pipeline Tells Us Q2 2016 is just a short pause while the market recalibrates. As suggested above, speculative construction has started. TA Associates Realty is under construction in Taunton with 200,000 s/f. Conroy Development is under construction in Mansfield with 94,000 s/f. Leases or purchase and sale agreements are out for signing. At Devens, Nestle is targeting 135,000 s/f. There are two 100,000 s/f transactions in Holliston and Hyde Park. 60,000 s/f from the Boston Flower Exchange is moving to Chelsea. Amazon is taking 160,000 s/f in Milford and Costa Provisions 240,000 s/f in Avon. In real estate it is all about making the right moves and those moves are happening in the industrial market. The supply side of the Boston market for large users is constrained. A deal originally targeted for 400,000 s/f in Boston went to Connecticut because a building of this size was not available in our market. Conclusion Market statistics can tell a misleading story. They suggest a lull in tenant demand as indicated by Q2 2016 numbers. This is not the case. The investor appetite for suburban industrial remains strong, particularly in the flex market. The flex building market at 30 million s/f is the smallest of the three classes of space (high bay, general, flex) that make up the market. In conclusion, we do not want to misread the data out there. Q1 2016 was a record 1,300,000 s/f of absorption and Q2 2016 is a justifiable breather. The above listed deals total 795,000 s/f alone. Q2 2016 is an outlier and represents random event of deal timing. Markets ebb and flow. There is no ebb to the Boston industrial market.

Webster Collins, MAI, CRE, FRICS is an executive vice president within the valuation and advisory group of CBRE, Boston.

Spotlight/Mid-Year Review

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New England Real Estate Journal

July 29 - August 4, 2016 5B

Architect

Developers looking for suburban properties in revitalized downtowns with access to transit David O’Sullivan

O’Sullivan Architects, Inc. We are in the middle of summer and things sure are hot, at least with the weather! The real estate market still remains hot in Boston. The mortgage foreclosure rate this spring was 1% the lowest since 10/07 so it is a non-issue these days. The 11,000 net new jobs created in May was dismal but June with 287,000 new jobs was spectacular. The short term rates have remained low which is keeping mortgage and commercial loan rates low. Borrowing has not become as expensive as feared back in January and while the Brexit has created turmoil and confusion worldwide, it has also made the U.S. economy the undisputed largest economy. The EU had a larger collective GDP prior to Brexit at $18.5 trillion but drops to $15.5 trillion while the US is pegged at $17.4 trillion. As the world adjusts to the shock of Brexit, the markets seem to be taking it in stride. So what does all this mean looking forward to the second half of 2016? There is good momentum in the market as investors look for strong markets to buy properties with good returns. Boston seems to meet their criteria and continues to attract investors from the U.S. and overseas. If you own commercial property in Boston you are undoubtedly fairly happy now. Rents for office space continue to be strong and the diversified economy of biotech, high tech, medical and financial services makes great options when looking for tenants. As for the residential market, there is some softening in the high end rental market as more units come on line. The Commerce Department released June housing starts with a 4.8% increase. June was the highest month since February. The national increase was fueled by a surge of building in the West and Northeast. There is a transition in residential building type as demand for the condominium market increase due to confidence grows in the economy. Boomers are also able to sell their existing homes for top dollar without much effort which is increasing demand in the city as well as surrounding small town centers ringing Boston. In our practice, which tends toward urban style mixed use residential, small commercial fitouts and smaller multifamily for both rental and for sale, we are seeing growth in all segments. The small commercial clients usually involves branch banks, automotive use, rehabs or small service businesses and we are seeing people expand or start new small businesses.

Many seem to have a health slant such as smoothies stores, exercise salons or medical uses. The urban infill seems to be most popular project at the moment, with either all residential or a mix of ground floor commercial with residential above. Traditionally we have been designing these projects in neighborhoods of Boston, Cambridge, Somerville and Brookline. What is occurring now, this current market, developers are looking beyond the core and searching for properties in upscale close in suburbs for properties that often mix renovation with new construction in a revitalized downtown with access to transit. Not all Boomers and Millennials want to live in Boston or Somerville. Many find they want to stay in the commu-

What is occurring now, this current market, developers are looking beyond the core and searching for properties in upscale close in suburbs for properties that often mix renovation with new construction in a revitalized downtown with access to transit. Not all Boomers and Millennials want to live in Boston or Somerville. Many find they want to stay in the community they have lived in for years and are familiar with but want a change of lifestyle. The small downtown business districts have become reinvigorated with new restaurants and small businesses and the local town governments want people on their Main St. to patronize these businesses. nity they have lived in for years and are familiar with but want a change of lifestyle. The small downtown

business districts have become reinvigorated with new restaurants and small businesses and the local town

governments want people on their Main St. to patronize these businesses. So there has become a movement to provide infill housing where residents can grab food, go to the health club, stop at small specialty stores and hopefully grab transit to their work in Boston. I think this trend will continue as the true urban lifestyle comes with high rents or expensive condominiums while suburbs can offer a taste of that and good transit connection to downtown at a much more affordable price. So I look forward to the rest of 2016 and think it is a great time to be in our industry.

David O’Sullivan, AIA, is the president of O’Sullivan Architects, Inc., Reading, Mass.

606 Main Street, Suite 3001 Reading, MA 01867

(Just across street, above Northern Bank)

781.439.6166

6B July 29 - August 4, 2016

New England Real Estate Journal

Spotlight/Mid-Year Review

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Attorney

How the new FASB Accounting Standards Update may affect the decision to lease rather than buy Sam Nagler

Krokidas & Bluestein LLP On February 25, 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) significantly impacting the financial reporting for many types of leases, including most real estate leases. From the perspective of the FASB and close watchers of the FASB, the ASU was the culmination of a 10-year joint study by the FASB and the International Accounting Standards Board, following a 2005

recommendation by the Securities and Exchange Commission for more transparency in lease accounting. From the perspective of many of us who are not close watchers of the FASB, the ASU arrived somewhat out of the blue. As an oversimplification, the ASU requires, effective for all non-public companies, including nonprofits, as of fiscal years beginning after December 15, 2019, that leases with a term exceeding twelve (12) months (and in some cases even leases of less than a year if they include an option to purchase) be recognized as both an asset and a liability on the company’s balance sheet. Under present standards, an operating lease (i.e., the typical real estate lease) does not need to be recognized on a company’s balance sheet; only capital leases need

It is too early to predict whether any standard conventions will develop in the loan and investment communities to address the ASU. One possible approach would be to amend existing loan/investment documents which currently extend beyond the effective date of the ASU, to provide that all covenants will be measured by the standards in effect at the time the loan was entered into. to be recognized. For some well-capitalized companies which can easily afford to own the real estate from which they operate, leasing, even as the sole user of the property, has been preferred over owning precisely because of the off-balance sheet treatment of the lease. Now a company will need to

consider the effect of the ASU on its financial presentation, and perhaps on its future ability to comply with certain covenants with lenders and/ or investors, such as debt service coverage ratios and restrictions on additional liabilities, depending on the definitional terms used in the financing documents.

Companies should accordingly take very seriously the balance sheet effect of the ASU, but they should not ignore the “traditional” issues in deciding whether to lease or own, such as: • Will the space be needed for an indefinite period or for a finite period (such as the length of an existing contract requiring a presence by the company in a particular location)? • Do real estate market trends indicate that if the property needs to be sold on short notice, the company would be able to recoup all or most of the purchase price? • Is the company only occupying a portion of the property, and, if so, what is its appetite for being a landlord? • Does the company anticipate outgrowing the space? • Is the company willing to pay the costs and fees associated with financing a purchase, and will personal guarantees or collateral other than the property itself be required for the financing? • Will the property require the expenditure of significant sums for repairs, renovations or capital improvements? • Does the property contain hazardous waste? There are protections available for some types of tenants which are not available for owners, who by definition are in the “chain of title”. It is too early to predict whether any standard conventions will develop in the loan and investment communities to address the ASU. One possible approach would be to amend existing loan/investment documents which currently extend beyond the effective date of the ASU, to provide that all covenants will be measured by the standards in effect at the time the loan was entered into.This may have its own complications, however, such as the need to prepare two sets of financial statements after the effective date of the ASU, one in compliance with GAAP, and one based on the pre-ASU standards, both of which would presumably be provided to the lendor/investor. It may be the case that a lender/investor would be more open to amending the covenants in documents that were entered into before the effective date than of theASU than using non-GAAP definitions in documents entered into after the effective date of the ASU. In any event, companies with real estate leases should review their existing loan and/or investment documents which extend beyond the effective date of the ASU, and should be proactive in reaching out to their lenders/investors if changes are needed to the existing documents.

Samuel Nagler is a partner at Krokidas & Bluestein LLP, Boston, Mass.

Spotlight/Mid-Year Review

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New England Real Estate Journal

July 29 - August 4, 2016 7B

Condo Attorney

Are phasing rights in a phased condo real property, personal property, and/or contract rights? Saul Feldman

Feldman Law Office In this article I am going to address whether development/phasing rights in a phased condominium are real property, personal property, and/or contract rights. I have been treating development/ phasing rights as real property since the early 1970s. Only recently have I learned that development/phasing rights in a phased condominium are still treated as personal property and/ or contract rights by at least one of the major title insurance companies doing business in Massachusetts. It is time to resolve this issue once and for all. If Massachusetts had adopted the Uniform Condominium Act, there would be a clear definition of development/phasing rights. Unfortunately, Chapter 183A, the Massachusetts Condominium Statute, lacks a definition of development/phasing rights. Rather, Chapter 183A mentions the concept only in one place, referencing the addition of units and/or land and the alteration of each unit’s undivided interest that would result from such addition (Section 5(b)(i)). Phasing rights are important not only for developers of a condominium who want the right to expand the condominium horizontally by the addition of a series of buildings over a period of time, but also for developers of a condominium who want the right to expand the condominium vertically by adding additional floors to the building. These “air rights” are an interest in real estate which a title insurance company should insure. There are three places to which we can look to understand the concept of development/phasing rights in Massachusetts: (1) A well drafted Master Deed will clearly describe the phases of a so-called phased condominium. For example, in a condominium consisting of Phase I with one building and two units, and a second phase yet to be built that will also consist of one building with two units, ALL of the land will be initially put into the condominium when the condominium is created by recording the master deed and the site plan showing all of the land. However, the “as built” floor plans will be recorded only for Phase I. The master deed will provide that the declarant and his successors and assigns reserve the right and easement unilaterally to amend the master deed by a phasing amendment to add Phase II. A well drafted master deed will also provide that this right inures to the benefit of a successor declarant

as well as to a foreclosing mortgagee, its successors and assigns, and a purchaser of the note and mortgage on the property. The development/ phasing rights may be contract rights as well as an interest in real property. Whether just real property or a hybrid of real estate and contract rights, such rights are insurable by title insurance. There is absolutely no doubt whatsoever, in my opinion, that the declarant of a phased condominium has in the phasing rights an interest in real estate. I have been able to obtain title insurance in this situation without a problem, beginning with Weymouthport Condominium in 1971. My developer client was unable to obtain planning board approval to subdivide the lot into three lots. Weymouthport was one of the first phased condominiums built on a single lot in Massachusetts. The site plan showed three phases on a single

lot with phasing lines delineating the three phases. Much more recently, for another example, I drafted a phased condominium in 2007 for OldeVillage Sq. Condominium, a multi-phased residential condominium on one 298,930 s/f lot in Medfield, Mass. Again, my developer client had absolutely no problem in obtaining title insurance for himself, his mortgagee, his buyers and their mortgagees, insuring the development/phasing rights as interests in real estate. Therefore, one place to look in deciding that development/phasing rights are real property is to look to the practice of condominium lawyers over the last forty to fifty years. (2) Another place to look is the common law in Massachusetts. Massachusetts case law has been that Phasing Rights are real property, Queler v. Skowron, 438 Mass. 304

(2002). Therefore, the rights to add additional land and/or units by one or more phasing amendments are real property rights for which title insurance should be available. (3) The Uniform Condominium Act has a definition of development rights. Barclay v. DeVeau, 384 Mass. 676 (1981), stated in footnote 17 that where Chapter 183A is vague, it is permissible to look to the Uniform Condominium Act, even though it has not been adopted in Massachusetts. CONCLUSION As a condominium lawyer who is also an aficionado of the condominium form of ownership, I am very concerned that it is not settled in Massachusetts that development/ phasing rights are real property. This issue is important for suburban condominium developments that will expand horizontally.

It is also important for urban condominiums that will expand vertically, as long as air rights are real property. The tremendous current demand for condominiums in Boston makes the issue very relevant. To the extent that development/phasing rights are real estate, an attorney drafting a master deed can provide in the master deed the right to develop additional floors above an existing building. Whether they are called phasing rights, reserved rights, or development rights, such rights to expand a condominium horizontally and vertically are rights in real property. Therefore, every title insurance company in Massachusetts may and indeed should insure them.

Saul Feldman, Esq., is an attorney with Feldman Law Office, Boston, Mass.

CONDOMINIUM law Feldman law OFFice Experience with residential, commercial, and mixed-use condominiums throughout Massachusetts since 1968; from 2 unit condominiums to condominiums with over 300 units, on registered and recorded land. Contact:

Saul J. Feldman, Esq. [email protected] OR

Angel Kozeli Mozina, Esq. [email protected]

Feldman law OFFice

REAL ESTATE / CONDOMINIUM LAW 185 Devonshire Street, Suite 400, Boston, Massachusetts 02110

617 523-1825

www.FeldmanRELaw.com

8B July 29 - August 4, 2016

New England Real Estate Journal

Spotlight/Mid-Year Review

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Counselor

Municipalities are now, more than ever, entering the fray of development, disposition and revitalization Brett Pelletier

Kirk & Company Municipalities and mission-based organizations are now, more than ever, entering the fray of real estate development, disposition, and revitalization. As the economy continues to recover regionally and nationally, municipal real estate problems and opportunities surface with urgency. Real estate and land-use challenges facing municipalities, non-profits, and community groups are not insurmountable, however, they often require capable and

competent counsel to guide decision making. These clients require nimbleness and efficiency in their counsel in order to best serve their constituent groups; often residents, taxpayers, and beneficiaries of mission-based organizations. Specialized skills and understanding are essential when advising clients with such needs and expectations in order to deliver relevant and substantive assignment conclusions that help the organization solve problems and achieve goals. That often includes identifying alliances within the real estate community that provide low- or no-cost solutions, identifying risks, potential partners, and resources available to ensure the client is as well informed as possible. Municipalities, specifically, have distinctly different objectives than private clients and are generally very

well informed about their local markets and assets. A holistic view of the marketplace and the real estate issues is necessary to adequately contextualize the problem to be solved and the relevant solutions available to the client. Many small towns in New England are largely run by a number of boards and commissions staffed by resident volunteers; especially in land-use planning and elected executive government. These groups are not always sufficiently supported by members of the real estate finance and development community and opportunities exist for partnerships with experienced and effective real estate advisors to bridge gaps. Because of the way land-use, property disposition, and development decisions are commonly made by such boards, the process is unlike what most private

processes look and feel like. A consultant with expertise dealing with municipalities and a public process can be an essential component of a successful transaction or project and can effectively serve as an intermediary between public and private entities. The issues that municipalities in New England often struggle with are common and frequently involve the disposition or redevelopment of historic assets or surplus land. Former school houses, town halls, libraries, and community buildings that are no longer utilized are prime candidates for action. The circumstances are almost always unique and depend substantially on the local market, the community, and the form of government within the town or city. Municipal clients need and deserve value added service and follow-up throughout the

David S. Kirk, CRE®, MAI® David S. Kirk, & Brett PelletierCRE , MAI

& Brett Pelletier

David S. Kirk, CRE®, MAI & Brett Pelletier

KIRK & COMPANY R eK a IRK l E s t& atC e C ounselors OMPANY

public processes, which takes time and patience.The assignments require a wide understanding of real estate development, land-use planning, and feasibility, and sensitivity to the fact that public buildings and projects are often part of the physical identity of the community. All of these issues require care, diligence, and leadership to provide credible conclusions and actionable counsel for policy- and decision-making. Practical development and investment strategies provide value added services to clients who often have limited flexibility and resources. Matching the counsel with the client’s level of sophistication and need is an important task for communicating conclusions and developing strategies.An important task may also be to de-clutter; quieting the noise and narrowing the focus and scope of the inquiry for efficient delivery of services. Independent counsel from the start helps to identify the issues and refine the scope of the assignment and leads to better results and a better-informed client. One major hurdle that most public entities face is the solicitation process. Municipalities and government entities are primarily reliant on RFPs or a similar public process for soliciting interest, services, and bids for a particular project. RFPs are often inadequately advertised and bids are open for less time than is typically required to attract enough attention and response from qualified entities. RFP processes need to be refined and specific in order to attract sufficient interest and ultimately provide value to the municipality. Public processes take time and the solicitation process needs to be efficient and effective. Stalling and inaction are the direct, and very costly, result of a process that has not achieved adequate exposure or clarity. Time, money and momentum are wasted when project requests are developed and presented without response. A consultant with public and private client expertise can be helpful in reducing or eliminating those barriers to success. Responding to a public process takes time and energy and often requires building a team and sensitivity to those issues are central to responsiveness and clarity. As a real estate consultant, I am always happy to assist municipalities, non-profit, charities, and community, and mission-based groups in answering those initial inquiries and helping to identify essential problems and strategies. Consulting assignments often mirror the life-cycle of the project; from genesis to completion, disposition, or redevelopment, and anything in between. It is certainly an exercise in diligence for all parties involved in real estate problem solving.

R e a l Valuation, E s t a t e C o u Due n s e l oDiligence, rs Counseling, unseling, Valuation, Due Market Diligence, Fiduciary Services, Fiduciary Services, & Feasibility Counseling, Valuation, Due Diligence, Fiduciary Services, MarketMarket & Feasibility Analysis, Litigation Support Analysis, Litigation Support & Feasibility Analysis, Litigation Support 99 SummerStreet, Street, Suite M120 99 Summer Suite M120 Boston, MA 02110-1256 Boston, MA 02110-1256 www.KIRKCO.com Phone www.KIRKCO.com (617) 261-7100 Fax (617) 261-7910 [email protected] Phone (617) 261-7100 Fax (617) 261-7910 [email protected]

Brett Pelletier is a senior analyst with Kirk & Co., Boston, Mass.

Spotlight/Mid-Year Review

Visit the paper online nerej.com

New England Real Estate Journal

July 29 - August 4, 2016 9B

Economic Development

Brockton’s leadership and diverse workforce are prepared to meet the needs of new employers Michael Gallerani

Brockton 21st Century Corp. The “Silver Tsunami” is a controversial term used to define the phenomenon of the aging American workforce (Baby Boomers) and how the median age has, not since the Social Security Act of 1935, reached an the unprecedented level of today. According to the U.S. Department of Labor, the Baby Boom generation (born post WWII /1946-1964) will completely be in the age fifty-five population sector by 2020. The socalled older population in America will make up more than twenty-eight percent of the total population.

the promotion of workers. Cities and towns will have a key role in the sea change that will occur. Communities that have an attractive quality of life, nearby educational institutions, and are willing to make genuine investment in making their workforce the best it can be will weather the change. Communities that do not invest in their employers may find that they lose companies, because like the young workers, today’s companies are mobile. Brockton and other Gateway Cities offer a comparatively younger workforce due to immigration. The future direction of immigration will affect the age demographics of the U.S. population. According to the Census Bureau’s demographic estimates in a

The loss of skills and institutional knowledge will dramatically affect businesses that have failed to prepare for the newly created gaps with training programs and recruitment of young workers. For example young people are widely unaware of the opportunities that available in the manufacturing sector. Entry into the mid-level and higher positions will require education and training. Some on-the-job-training will be available and part of the strategy, most employers will be looking for and need people that are job ready to fill key positions. It is not rare to find a person now reaching retirement age that has worked for the same company most if not all of his or her career. Unlike the retiring generation, the millennials or echo-boomers, which are and will continue to be relied on to fill positions will be more mobile in their careers. Today’s companies will try to ensure key business processes are passed to younger employees, but the reality is they are going to be at the mercy of today’s young workers who change jobs frequently, taking their newly acquired knowledge with them. The alternative strategy will require employers to take greater and more frequent risks and provide young workers with clear and rewarding career paths, and accelerate

As consumers the Baby Boom generation has unprecedented retirement age wealth due to being a generation that benefited from a post war housing boom and the value of the properties that has been passed on from their parents. Financial planning also has created a support system that will make people less reliant on Social Security alone. On the other hand, retirees do not contribute as much to the economy as the people who work do. Even with the increased

wealth – compared to earlier generations - these retirees will spend less on average. For many the financial crisis of several years ago wiped away billions in retirement savings, though the recovery of the stock market has given more baby boomers the confidence to move forward with their retirement plans, albeit without the second home or luxury car. Many are down-sizing from their long-time family homes, some even moving back to cities where they can have access to an array of restaurants, activities, healthcare, and public transportation. In Brockton we are developing strategies to create more dining and entertainment in our Main St. corridor. The development of new housing, as well as easy access to the commuter rail, healthcare facilities

(three hospitals), colleges (Massasoit Community College, Bridgewater State University, Stonehill College) and activities (Fuller Craft Museum, Campanelli Stadium) will make Brockton attractive to Baby Boomers as well as Millennials that when combined would form a robust and diverse 21st Century city. Because of good planning and strong leadership Brockton will weather the “Silver Tsunami” and be prepared to meet the needs of new employers.

Michael Gallerani, is the executive director at Brockton 21st Century Corp., Brockton, Mass.

BROCKTON

What does that mean for economic development? The most obvious is the impact on the workforce. Just under 17% of older Americans are continuing to work beyond the typical retirement age (62-65), while many look forward to their retirement years with hopes for health and active lifestyles never experienced before.

“high immigration” scenario projects to be nearly twenty-two million more working-age residents in 2050 than in the “low immigration” scenario. The new Americans will be a source for entry-level workers that are vital for companies large and small.

Everything is within reach! For more than twenty years B21 has served as Brockton’s economic development agency. Our staff has helped hundreds of businesses, both large and small, find their right opportunities in Brockton. We are proud to be partnering with the City of Brockton, the Brockton Redevelopment Authority, MetroSouth Chamber of Commerce and others to offer investors, developers, and business owners programs, initiatives and the expertise of the Planning and Development team to help them succeed.

          

BluePrint Brockton Downtown Action Strategy Development Increment Financing Transformative Development Initiative Urban Revival Plan Brockton Façade Program Campello Main Streets Program Brockton Boost Camp Brockton Business Guide Brockton Parking Plan Brockton Economic Development Support Team

Contact: Michael Gallerani, Executive Director Phone: 508 586 0021 Email: [email protected] 50 School Street Brockton, MA 02310

10B July 29 - August 4, 2016

Spotlight/Mid-Year Review

New England Real Estate Journal

Visit the paper online nerej.com

Finance

Commercial and multifamily mortgage lenders are overcoming regulatory headwinds Michael Chase

NorthMarq Capital At this time last year, the regulatory environment was shaping the commercial and multifamily debt market. The GSE’s were the first to pump the breaks in the second quarter of 2015, but quickly recovered after new rules allowed for exclusions from their lending caps. As the year went along CMBS lenders had to work through new disclosure requirements implemented under Regulation AB

while also planning for upcoming risk retention to be implemented by the end of 2016. Meanwhile, commercial banks sorted through their own risk retention requirements under Basel III, and High Volatility Commercial Real Estate, (HVCRE) became the Rubik’s Cube to be solved for those seeking development financing. In 2016, even in the midst of regulatory headwinds, the commercial and multifamily market is once again off to another strong start. According to the Mortgage Bankers Association, total commercial and multifamily mortgage debt outstanding finished the first quarter at $2.86 trillion, an increase of 1.2% over year-end 2015. Three of the four primary lending groups - commercial banks, GSE’s and life insurers – have all started the year off with an increase

According to the Mortgage Bankers Association, total commercial and multifamily mortgage debt outstanding finished the first quarter at $2.86 trillion, an increase of 1.2% over year-end 2015. Three of the four primary lending groups - commercial banks, GSE’s and life insurers – have all started the year off with an increase of their debt outstanding. of their debt outstanding. Thus far, the only group to lag behind has been the CMBS market. Through the second quarter CMBS originations are down 59% year-over-year according to data compiled by Commercial Mortgage Alert. However, the deals the CMBS market is not doing this year are being absorbed by the other market participants and by other capital sources such

as private debt funds and mortgage REITs. The primary catalyst for the strong debt market in 2016 has been continued low interest rates. On December 15, 2016, the Federal Reserve raised their key interest rate for the first time in a decade, and the market was left to ponder the prospect of entering a rising rate environment. As we all know, this

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didn’t happen. On the date the Fed Funds rate was increased 0.25%, the 10-year U.S. Treasury was trading at 2.28% and by July 5 hit an all-time low of 1.37%. With the sovereign debt of several nations, including Germany, recently trading at or below zero percent, an all-time low for U.S. treasuries still appears relatively high. Not only have long-term rates fallen, but the spread between short-term and long-term rates has narrowed. The flattening yield curve has made fixing in long-term even more attractive. With last year’s lending cap issues behind them, the GSE’s are off and running in 2016. In May, the Federal Housing Finance Agency announced an increase to the lending caps for both Fannie Mae and Freddie Mac from $31 billion to $35 billion each. The increase came with additional changes to the excluded categories allowing the GSE’s to aggressively go after affordable and green properties. Through June, Fannie has reported year-to-date originations of $22.8 billion with 33% of their 2016 volume excluded from the cap. Commercial banks have generally eased up on construction lending, due in part to the HVCRE risk retention requirements. They still remain a strong player, however, for permanent fixed and floating rate financing with an ability to offer clients the most flexibility over the term of the loan. According to the MBA, commercial banks saw a 44% year-over-year increase in their commercial and multifamily origination activity. This has not gone unnoticed with recent remarks by the Office of the Comptroller of the Currency concerned with increased credit risk from an easing of underwriting standards. Life insurers still remain the go-to for high-quality low-leverage executions. Fitch Ratings recently reported almost 80% of life companies experienced some degree of growth in their mortgage portfolios in 2015. A lack of alternative investments, low treasury rates, high levels of competition and a limited pool of opportunities have created a perfect storm for borrowers to take advantage. More flexibility is being offered and rates for both longterm and short-term requests are at historic lows. Even CBMS has begun to pick up momentum after their slow start. It is unlikely they will match their production volume from 2015; however, new strategies from market participants and the recent narrowing of bond yields should allow CMBS to compete through the remainder of the year. Currently, 2016 remains a borrower’s market with plenty of capital still available seeking the right opportunities.

Michael Chase is a senior vice president with NorthMarq Capital, Boston, Mass.

Spotlight/Mid-Year Review

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New England Real Estate Journal

July 29 - August 4, 2016 11B

Golf

The Appraisal Institute’s Analysis and Valuation of Golf Courses and Country Clubs Jeffrey Dugas

Wellspeak Dugas & Kane, LLC Most appraisers struggle with the allocation of going concern value to nonreality components, specifically the business, or goodwill facet. In order to get around this requirement we have seen some appraisers report that NO business value exists, apparently, to make the whole issue go away. The Appraisal Institute published a book by Arthur Gimmy and Buddie Johnson labeled Analysis and Valuation of Golf Courses and Country Club, which includes a section on Business Value. The Appraisal Institute is careful not to mandate a single technique, but instead offers several viable

The Appraisal Institute published a book by Arthur Gimmy and Buddie Johnson labeled Analysis and Valuation of Golf Courses and Country Club, which includes a section on Business Value. The Appraisal Institute is careful not to mandate a single technique, but instead offers several viable options. options. The methods described are the Excess Profit;The SalesApproach of Business Opportunity; Residual or Segregation and Management Fee allocation approach. From our review of other appraisers’ work, we find the Excess Profit technique is often employed, but commonly misused. It is nothing more than an allocation of stabilized income to the valuation components of a going concern based on costs contained on the club’s balance sheet. Excess Profit has nothing to do with superior management or enhanced performance of the club, as some would suggest, but rather how its revenue stacks up to its asset value which is an accounting term for costs. This is really an exercise of on cost allocation but it has no relation to market value since none of the figures are derived from the market. Since most appraisers no longer rely on the Cost Approach as a valid method of golf course appraisal because of the presence of Economic Obsolescence, relying on asset value established by the club’s accountant is no more correct. How then can an appraiser omit the Cost Approach as

a meaningful valuation technique, yet rely on the “Excess Profit” technique for establishing business value? They can’t or at least shouldn’t. One of the methods described in the book, “Sales of Golf Course Business Opportunities”, is the use of rental comps as the basis for projecting income to the real estate. Market rental income is converted into a real estate value, similar to the way appraisers value other types of commercial real estate. Once this is done the appraiser can deduct real estate value from the value of the going concern.The difference can be attributed to nonreality, or business and personal property. I have read some criticism of this approach that come from a lack of research and understanding of the development of meaningful rent comps. Similar to

developing improved sales, an appraiser must verify and dig into the details. For instance, a lease rate may appear low, but it may require upfront capital. Or, the difference in taxes can significantly alter the rate an operator can afford to pay. In New York for instance real estate taxes are extremely high. So when relying on rents from New York and Conn., the rates may vary by a few percentage points but for good reason. When I hear criticism of this approach I know it is invariably a result of shortcuts in research and lack of insight. For the most part golf course rents typi-

cally range between 10% and 20% of gross revenue. Conversely, I’ve seen appraisers present for analysis data ranges that are far more broad based. When carefully analyzed and diligently researched we have found that rental data for golf courses is fairly consistent, it’s also market driven and consistent with the way in which appraisers value all types of commercial property. I will admit the data is difficult and time consuming to obtain, but that should not deter appraisers from developing this approach, or criticizing it with unfounded appraisal theory.

Jeffrey Dugas, MAI, SGA, is a partner in the firm of Wellspeak Dugas & Kane, LLC, and heads the Golf Advisory Group, Cheshire, Conn.

GOLF ADVISORY GROUP

When you need to line up an expert in golf for the following services please contact Jeffrey Dugas, MAI, SGA at Wellspeak Dugas & Kane. n APPRAISAL SERVICES

WDK has completed more than 2,000 golf related assignments over the past 25 years.

n LITIGATION SUPPORT

Mr. Dugas has been qualified as an expert and has testified in dozens of courts throughout CT, NY, NJ, MA, RI, PA & FL.

n ADVISORY SERVICES

Mr. Dugas has consulted and advised clients on transaction work totaling more than $100 million, along with numerous lease negotiations.

n ASSESSMENT APPEALS

Mr. Dugas has assisted in hundreds of assessment appeals, saving clubs tens of million of dollars in R.E. taxes.

55 Realty Drive Suite 305 Cheshire, Connecticut 06410 Tel: (203) 699-8920 Fax: (203) 699-8938 www.WDK95.com [email protected]

12B July 29 - August 4, 2016

Spotlight/Mid-Year Review

New England Real Estate Journal

Visit the paper o

Project of t

Plumbing

PROJECT TEAM: SPAGNOLO GISNESS & ASSOC., NOVEL IRON W

Integrated Builders make office renovation for T

Plumbing

COMMERCIAL/INDUSTRIAL PLUMBING

Dan-Cel Co., Inc.

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with Integrated Builders

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NEWTON, MA Integrated Builders has been selected to construct 110,000 s/f of new office space for Two Wells Avenue, LLC. The firm commenced construction in June 2016 with the demolition of two wings of the existing building in order to increase its total size from 69,000 s/f to 135,000 s/f. Two Wells Ave. will undergo a vertical expansion from one floor to three floors. The office building is located at the entrance to Newton’s Wells Ave., and its renovation marks the first of repurposed properties for higher and better use on that route. The office space was constructed more than 40 years ago and has not been modernized since that time. Integrated Builders will implement a modern design that includes new utilities, a common corridor with contemporary interior design, an underground storm water filtration system, additional parking, and a reflective glass exterior in order to bring the building into the current date. In addition, energy efficient lights and HVAC will be installed to increase the building’s sustainable advantage. “Two Wells Avenue has great bones and we are excited to not only double the size of the building, but also preserve a portion of the existing space which holds a great amount of history,” said Jay Dacey, president of Integrated Builders. “This area of Newton and Needham is currently experiencing growth and significant transformation. This enhanced facility will complement other nearby developments with its modern glass design, high-end upgrades, amenities, features and finishes, making the area even more attractive for growing businesses and the respective employees.” Integrated Builders has made tre-

mendous progress in a short period of time. The selective demolition effort is scheduled to finish before the end of the this month. The construction team has begun preparation for foundations, and foundation work will start toward the middle of August. In September, structural steel is expected to be delivered and erected on site, followed up with roof placement. Integrated Builders has been conducting frequent meetings to discuss logistics and to ensure that

the project is delivered on-time and within budget. The Integrated Builders team includes project manager Brian Kidder, superintendent Craig Ablondi, and assistant project manager Barbara Frazier who will provide construction management expertise in collaboration with architect Spagnolo Gisness & Associates Inc. (SGA), structural engineer Thornton-Tomassetti Group, MEP/FP engineer WSP| Parsons Brinckerhoff, civil engineer

Arch

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Spotlight/Mid-Year Review

online nerej.com

the Month

WORKS, TECH MECHANICAL, METRO WALLS AND DAN-CEL CO.

es headway on 135,000 s/f Two Wells Ave., LLC

New England Real Estate Journal

July 29 - August 4, 2016 13B

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Nitsch Engineering, and owner’s representative John Hennessey. Located near the Mass. Turnpike and Rte. 128/I-95, Two Wells Ave. provides an ideal destination for commuters. The building is situated near the city’s retail district along Needham St., offering a selection of restaurants, banks, hotels, and retail shops. Additionally, access to the site will be enhanced with the completion of the new Kendrick St. interchange at Rte. 128/I-95.

Two Wells Ave. project team Integrated Builders ....................................... construction manager Spagnolo Gisness & Assoc. ................................................architect Novel Iron Works........................................................structural steel Tech Mechanical ......................................................................... HVAC Metro Walls ............................................................ drywall + framing Dan-Cel Co. ............................................................................ plumbing

hitect

O WELLS AVENUE TEAM O WELLS AVENUE TEAM

420 West Street West Bridgewater, MA 02379 508-588-9985

www.techmechanical.net

14B July 29 - August 4, 2016

New England Real Estate Journal

Spotlight/Mid-Year Review

Congratulations to Two Wells Ave., LLC Integrated Builders is honored to be the Construction Manger for the Two Wells Ave. project

Visit the paper online nerej.com

Spotlight/Mid-Year Review

Visit the paper online nerej.com

New England Real Estate Journal

July 29 - August 4, 2016 15B

Hotel

Positive market performance projected for the rest of 2016 and well into the next five years James O’Connell

O’Connell Hospitality Group The ALIS Boston Summer Series event was held on July 19th with 227 people in attendance representing 26 states and six countries. More importantly, 17 participants from publicly traded REIT’s, large pension fund advisors, major national lenders and other industry leaders gathered to present their opinion for where we are in the real estate cycle, today and for where we are headed for the next few quarters as well as the next few years. The crowd was happy to hear that continued positive market performance was projected for the rest of 2016 and well into the next five years. The dramatic upswing for market performance is going to be tempered and will mirror national GDP growth. Unlike the last big meltdown we experienced in 2007 – 2008, there are no major “bubbles” on the horizon that should cause anyone to be concerned. Growth in the United States and around the world is anemic and it is expected to remain weak. GDP is projected at 1% - 2% for the foreseeable future. That is expected to keep interest rates low. The Federal Reserve may raise .25% or so, but that isn’t expected to be a blow to the investment system. Wage inflation is a concern. Especially with Obama and the left pushing for increased minimum wages. However, those increases are expected to be overcome by continued, slow, RevPAR growth in the 2% - 3% range. New supply is starting to be a concern in Boston and around the region. According to Pinnacle Advisory Group of Boston, new supply in Boston is expected to jump in 2017 and 2018. Actually, new supply is coming on line in many of the major markets throughout New England. In northern New England, places like Bangor, ME., North Conway, N.H. and Burlington, VT. have had new supply additions and also have been squeezed by the weakening of the Canadian dollar and the lack of travelers from across our northern border. In many cases, the lack of Canadian travelers has accounted for as much as a 15% drop in revenue. Couple that with supply additions and we have several hotel projects that won’t meet initial projections. The hotel industry, across the country is experiencing record occupancies never seen before. Boston will finish 2016 at over 81% Occupancy. This causes compression into

the suburbs so everywhere along Rte. 128 is jammed as well. That makes I-495 look very good. As an example, rather than pay $300 per night, bus tours are getting pushed out to Andover, Natick, Framingham, and Marlboro for $120 per night. That is expected to continue. Until the new supply comes on line in Boston during 2018. Then, the elastic band is expected to snap back a bit. The hotel transactions market slowed dramatically in the first half of 2016, compared to 2015 and 2014. In the 4th quarter of 2015, publicly traded hotel companies were hit hard by projections that forecasted a slowing of RevPAR growth. Those stocks are off 30% - 40% in many cases. This had caused a ripple effect in the bond market. The CMBS market shunned

The crowd was happy to hear that continued positive market performance was projected for the rest of 2016 and well into the next five years. The dramatic upswing for market performance is going to be tempered and will mirror national GDP growth. Unlike the last big meltdown we experienced in 2007 – 2008, there are no major “bubbles” on the horizon that should cause anyone to be concerned. the sale of hotel debt and the dearth of good financing terms slowed the acquisition of many hotel projects across the country. That stigma has dissapated and an appetite for higher yielding hotel debt has returned. But it is like a freight train starting up.

Inertia and momentum take time to increase. It is anticipated that debt markets will continue to remain strong and interest rates remain low for the next two to three years. Negative interest rates for European government securities will continue

for quite some time. This causes major investors around the world to buy United States treasuries in a flight to quality, despite our own yields at +/-2%. This phenomenon is expected to continue and really is the backbone for continued low interest rates for real estate debt. In closing, it looks like the turtle is going to win another race over the rabbit. Slow, plodding, anemic, boring, no fun, nose to the grindstone sort of stuff for the next few years. We will be skiing the flat “green” runs for a while with no “double black diamonds” around the corner!

James O’Connell is principal of O’Connell Hospitality Group, LLC, Danvers, Mass.

16B July 29 - August 4, 2016

New England Real Estate Journal

Spotlight/Mid-Year Review

Visit the paper online nerej.com

Insurance

Old favorites & new hits: What’s getting real estate professionals into trouble these days John Torvi Herbert H. Landy Insurance Agency, Inc. The vibrant real estate market in New England and many other parts of the country means that real estate professionals are managing robust market activity with all of the accompanying rewards, and risks, that come with it. While there are numerous “wins” in the market for the public and professionals alike, those of us on the insurance risk and claim side are sleeping with one eye open. Past

While there are numerous “wins” in the market for the public and professionals alike, those of us on the insurance risk and claim side are sleeping with one eye open. Past experience shows that active and changing market conditions increase chances of professional liability claims from unhappy consumers. Many claims remain the type seen under any economic conditions – disclosure/property condition, breach of contract allegations, escrow disputes and Fair Housing are always amongst the most common types of allegations. experience shows that active and changing market conditions increase chances of professional liability claims from unhappy consumers. Many claims remain the type seen under any economic conditions – disclosure/property condition, breach of contract allegations, escrow disputes

and Fair Housing are always amongst the most common types of allegations. Conditions that arise from a specific set of circumstances, for example the foreclosure phenomenon of a few years ago, can lead to changes in the way an agent may practice. Subsequently, the E&O insurance

carriers saw an atypical jump in claims relating to improper evictions, inappropriate legal, tax or financial advice and valuation disputes. Characteristics of today’s market include low interest rates, increases in investment sales, more ownership interest from millennials, decreasing

numbers of cash sales and rising prices accompanied by affordability issues for many would-be buyers. To add to the mix, we have Brexit and Federal Reserve concerns about rapid escalation of commercial property values (as reported June, 2016) combined with increased vacancy rates. Agents, property managers and other professionals may need to gain a better understanding of these trends in order to best serve their clients and avoid any mishap. Considerable information continues to be available regarding recent additional trouble spots including cybercrime, social engineering and drone usage, for example. Valuation has and remains a trouble spot, and increasing property values driven by increasing demand means that one particular subject – Escalation Clauses in sales agreements – deserves more attention. High demand properties may result in a bidding war that needs to be managed by both the buyer’s and seller’s agents. To more effectively do this and reduce the risk involved in using Escalation Clauses, agents can take certain steps to produce a successful transaction. They include: • Provide proof of a higher offer (privacy protected of course). Stating that a higher offer exists, without proof, can result in accusations of fraud, negligence or breach of contract • Before making the higher offer, make sure the buyer has been approved for the highest amount they intend to and are able to spend • Include a cap that the potential buyer has to avoid an offer that cannot be made real • Ensure that the property will appraise at the higher price points. Seek a pre-sale appraisal and/or include an appraisal contingency in the sales agreement • Include in writing any other contingencies related to the escalated price points, such as additional home inspections • Make sure the escalation clause passes legal muster. Recommend, in writing, that all parties have their attorneys review the arrangements and language prior to signing off. Differences in interpretation of the contract language needs to be resolved prior to any offer, and certainly before any signing of contracts. As with all things in real estate sales, preparedness, written disclosure, documentation and cautious adherence to sound procedures will aid in a successful and profitable experience for all involved, and reduce the possibility of a call to the insurance carrier.

John Torvi is the vice president of marketing & sales at the Herbert H. Landy Insurance Agency of Needham, Mass.

Spotlight/Mid-Year Review

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New England Real Estate Journal

July 29 - August 4, 2016 17B

Maine Investment Market

Diversification: It is important to be nimble and willing to change with the market Michael Cobb

Cardente Real Estate For many real estate investors, diversification is often not the norm. People like to invest in what they know. As Wall St. mogul Peter Lynch once said, “know what you own, and know why you own it.” For an investor that has owned nothing but industrial properties, it may be a stretch to consider retail, office or even a residential conversion. Likewise, many investors are only comfortable buying in a specific geographic location. This can often present a challenge in maximizing returns, specifically if that region trades at a lower capitalization rate. The real estate market in Southern Maine has been highly successful over the last few quarters and vacancy rates are at record lows, however, we have seen certain trends in the market where owners, tenants, and investors are being rewarded for thinking “outside the box.” One trend that has been prevalent in the Greater Portland area is the repurposing of older building stock. As new construction prices soar, it is often more affordable to restore and repurpose old structures than it is to build new ones. For example, the cost for new construction of a warehouse building is $60 to $70 per s/f. Now add in land cost and it is upwards of $100 to $115 per s/f. Compare that number to the average sale price of an existing industrial building at $55 to $60 per s/f. Even adding in restoration costs, it can still be more appealing for tenants or buyers to wait and find an existing building. One of the larger scale projects matching this model is the restoration of Thompson’s Point in Portland. This 30-acre parcel was a longtime home to a rail yard frequented only by a growing homeless population and local graffiti artists. Thanks to the vision and commitment of local investors led by Chris Thompson, this area is now a crowd pleasing multi-use property boasting an outdoor concert venue, Bissell Brothers Brewing Company, Cellar Door Winery, and various other retailers and office users. Another great example is a building located at 272 Lancaster St. in Portland, which will soon open as Fork Food Lab. This was an old brick building in what has long been considered a “rougher” area of Portland. Once home to a boxing gym,

the building had become forgotten storage space and showed signs of many years of deferred maintenance. Local entrepreneurs, Neil Spillane and Eric Holstein stripped the building back to its studs and invested in a state-of-the-art build-out to create a collaborative commercial kitchen which will serve as home to new and existing restaurateurs. Portland’s East Bayside area is another example of historic buildings restored for modern day use. East Bayside was once home to the peninsula’s industrial district and has changed drastically over the past ten years.The neighborhood has become home to many high-end craftsmen, a multitude of breweries, craft distilleries, coffee houses and fitness

centers. If fact, it has become such a beacon for Portland’s flourishing craft beer market and other fermentation based businesses that the area has been locally coined “Yeast Bayside.” Finding creative ways to repurpose existing real estate is not a trend that is limited to Greater Portland. Up the coast in Ellsworth, Jackson Laboratory purchased a former Lowe’s building with plans to create a facility to breed mice for use in genetics research. The site is a 17+/- acre parcel improved by a 140,000 +/- s/f building. The Ellsworth expansion is expected to cost upwards of $75 million. Lowe’s closed its doors after only two years in business as part of a nationwide decision to shutter underperforming locations. In Freeport,

a stunning 8,200+/- s/f retail building is now home to Midcoast Federal Credit Union. The property had been vacant since it was built in 2006. It was originally part of an expansion strategy that came to a halt when the economy crashed. Several brokerage firms attempted to sell it over eight years, largely focusing on retail users. It sold in 2015 to Midcoast Federal Credit Union who opened a small retail branch only to convert the majority to office space and served as their regional headquarters. No matter what region or market sector, it is important to keep diversification in mind. As the market changes, keep an open mind to adaptive “re-uses” and creative ideas to fill existing space. When searching

for investment opportunities, keep in mind that Maine is a proven market that has survived since the 1600s. There are strong stable communities in and outside of Greater Portland that offer capitalization rates well above the national average. When comparing returns to that of major metropolitan markets such as New York and Boston, investors should take notice! It is important to be nimble and willing to change with the market. With a slogan like “The Way Life Should Be”, Maine is certainly worth a look. Michael Cobb is a broker/partner with Cardente Real Estate, Portland, ME.

18B July 29 - August 4, 2016

Spotlight/Mid-Year Review

New England Real Estate Journal

Visit the paper online nerej.com

Maine Office Market

2016 mid-year office market update: Greater Portland remains safe investment Matthew Barney

Malone Commercial Brokers The first half of 2016 continued the positive trend for Greater Portland, with landlords and sellers now realizing the benefits of a more favorable market. • Vacancy/absorption remained unchanged on the whole, but the downtown market tightened by nearly 1% while the suburbs increased in vacancy by 1.3%. • Leasing activity increased by

23% over the first six months of 2015, with large-tenant leasing and renewals (10,000+ s/f) nearly double

the normal average. • Large, “For Lease” floorplate options remain scarce downtown, but

the suburbs now offer a half-dozen or so 10,000+ s/f spaces for tenants needing an alternative.

Listening to our cLients is top priority 5 Moulton Street, Portland, Maine 04101

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• Office sale activity slowed in the first six months, but demand remains at an all-time high in Greater Portland from local, regional and national investors. Overall vacancy (both direct and sublease) came in at 8.72% as of mid-year, but with contrasting results by submarket. Downtown posted vacancy of 7.65%, the lowest since 2006, with the Class A sector now at 6.53% (a 2008 level). In contrast, the suburban market increased in vacancy to 9.63%, due mostly to an increase in available sublease space (on a direct basis, the suburban market was even with year-end 2015 at 7.76%). Large-Tenant leases remained active in the first half, with notable renewals by Wells Fargo (12,899 s/f) and Prudential (51,831 s/f) at Two Portland Sq., and WEX (42,000 s/f) at 95-97 Darling Ave., along with new leases by The Beacon Group (17,581 s/f) at 280 Fore St. and Sebago Technics (18,435 s/f) at 75 John Roberts Rd. For tenants needing contiguous space of 10,000 s/f or more, the options downtown remain limited – 14,000 s/f and 12,671 s/f spaces are available at 100 Middle St. and One Monument Sq. (respectively), with a new 5-story, 48,000 s/f building poised to break ground this year at 16 Middle St. In contrast, the suburban market now “has the goods”, with multiple options in South Portland and Westbrook for tenants seeking contiguous space from 13,000 s/f up to 135,000 s/f. Going forward: • Downtown, Class A rents will increase as supply outpaces demand. While the historic, average annual increase is only 1.8%, asking rents are already up 5% - 10% for tower spaces. It’s inevitable that renewals and new lease pricing will bump. New construction must be on the horizon for 2017. The suburban market should see a jump in leasing activity, simply by having available, large-floorplate options and free parking. Downtown parking now ranges between $140 to $150/space/month for desired locations, which equates to a net-rent-equivalent of $7.00 - $9.00/ SF. Whether company or employee paid, this is now a noticeable burden. Landlords should still be cautious in this favorable market, continuing to focus on tenant retention rather than a drastic increase in pricing. Tenants, on the other hand, should have broker representation now more than ever. Both parties want the same outcome and good brokers can effectively guide both sides to that outcome.

Matthew Barney is a broker with Malone Commercial Brokers, Portland, ME.

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New England Real Estate Journal

July 29 - August 4, 2016 19B

Management

We are at a juncture at which we split from old methodologies to follow a new path of efficiency Chris Mellen

The Simon Cos. It is no cutting-edge revelation that technology is changing the way we do business. It’s as true for property management as it is for any other line of real estate business. But property managers face a specific challenge in terms of dealing with that reality in that the practice of management is traditionally a faceto-face, hands-on business. How does our growing ability to monitor and respond to issues remotely sync up with that age-old expectation? The answer is, they are not mutually exclusive. Indeed, property management today is at a juncture at which we split from old methodologies and preconceived notions to follow a new path of efficiency and customer service. First some facts. As was recorded during an IREM Webinar, to best meet today’s customers’ expectations, the smartest service teams are making use of specially designed software and apps on smart devices like iPad, smart phones and many other tools that are coming onto the playing field daily. Doing so can reap benefits to managers and occupants alike, including a 45% increase in productivity and a 44% jump in efficiency. It’s simply a function of the modern 24/7 mode of work. We’re communicating all the time and so doing more through the above-named devices, social media and emails. But remember, so too are all of our occupants, whether those occupants are residential or commercial. Technologies are assisting in all parts of our day, whether it’s remote meeting capabilities, lease renewals, virtual building tours or online banking and how you book your vacation. We all want service, but we want it done quickly and efficiently. The tools available to us today make us as property managers more proactive than ever before while simultaneously making us more responsive to the needs and wants of our constituents. Everyone gains. Well, not everyone. While the cost of tech generally is always coming down, certain systems, such as remote applications for monitoring building equipment, can carry hefty price tags. And there are those of the older guard who might balk at the expense or at the very challenge of doing things other than how they were done years ago. Their choice is to render themselves irrelevant or

to keep up in order to increase their own profit margins. And we must note here the overplayed hype of Milennials and technology. Yes, the generation that is taking hold of a greater percentage of the workforce is savvier than all others as to the applications of technology, and indeed, they do reinforce its need. But by-and-large they are not as yet in decision-making capacities, not at least in business. No, tech is advancing on its own. We’re all merely adopters. At IREM’s Leadership & Legislative Conference in Washington DC earlier this year, keynote speaker John Santora of Cushman & Wakefield made an important point about relationships. He said that if a manager has to introduce himself to

The importance of having a face-to-face presence will never go away. But more than ever, it’s presence with a purpose. We’re in a new day of management where our frontline constituents--our occupants--recognize and appreciate the efficiency of our operations as much as our onsite presence. After all, they’ve experienced the power of tech in every other aspect of their lives. They expect it in their building operations as well. The essentials of good management will never change. The tools available to us today simply allow us to employ those essentials in a way that makes sense. the building receptionist, she or he is not doing their job. The importance of having a face-

to-face presence will never go away. But more than ever, it’s presence with a purpose. We’re in a new day

of management where our frontline constituents--our occupants--recognize and appreciate the efficiency of our operations as much as our onsite presence. After all, they’ve experienced the power of tech in every other aspect of their lives. They expect it in their building operations as well. The essentials of good management will never change. The tools available to us today simply allow us to employ those essentials in a way that makes sense.

Christopher Mellen, CPM, is 2016 president of the Institute of Real Estate Management and is also vice president of property management for Simon Companies, Braintree, Mass.

639 Granite Street Braintree, MA 02184 781-848-2500

Professional Developers, Owners and Managers of Commercial and Multifamily Real Estate Since 1966. Contact us to learn how our www.simoncompanies.com

third-party Asset Optimization Services can increase the value and efficiency of your real estate holdings.

Financial Management and Accounting Property Management and Maintenance Leasing Services Project and Construction Management Additional Advisory Services

20B July 29 - August 4, 2016

Spotlight/Mid-Year Review

New England Real Estate Journal

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New Hampshire

The New Hampshire office market has changed considerably since the crash five years ago Laura Nesmith Colliers International| New Hampshire The New Hampshire office market has come a long way since 2011 when the vacancy rate was over 20% compared to the present 12.3% vacancy rate for Q2 2016. Back in 2011, we were reporting that the market was mirroring the overall state of the economy, which was highlighted by the lack of physical growth as companies were focused on strengthening their bottom line. Office

leasing activity was increasing, but appeared to be driven by tenants looking to “right-size” operations which didn’t lead to increased absorption. Landlords were reaching deep to aggressively offer tenants lease terms and incentives that were more attractive than competing owners.   Tenants were looking for upgraded space (often with a smaller footprint) at a better price – and getting it. Tenants were also demanding landlords to include space planning services, moving cost reimbursements and other non-lease expenses. Five years later, the office market landscape has changed considerably. Although office tenants can still push for attractive deal points, landlords have much more leverage in negotiations, especially if ample parking can

Overall, the recession of the late 2000s is beginning to seem like a distant memory. The slow, steady improvement seen in the New Hampshire office market for the past five years should continue into the foreseeable future. be delivered with the space. Based on our internal tracking of 400+ office buildings consisting of well over 17 million s/f in New Hampshire, all six tracked submarkets are reporting an uptick in tenant (and buyer) activity level in the office market. Technically, the Greater Rochester submarket (consisting of only 693,805 s/f of tracked office space) has the lowest vacancy with a 6.15% rate compared to 28.1% in 2011. The improvement in Greater Rochester

over the past five years has been clearly noticeable. The strongest office submarket is arguably found in Greater Portsmouth. Consisting of nearly 4 million s/f of office space, Greater Portsmouth has a 7.9% vacancy rate compared to a whopping 20.2% in 2011. The demand for space in Greater Portsmouth (especially at Pease International Tradeport) seems insatiable, which is driving the prevailing office lease rates to the highest peak in New Hampshire. Also showing marked improvement

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over the past five years is the Greater Manchester office submarket, which consists of over 6 million s/f of office space with a 13.8% vacancy rate compared to 18.8% in 2011. The Millyard remains white hot even with the lack of ample on-site parking. Millyard employers like Southern New Hampshire University (SNHU)and Dyn continue to thrive, eat up space, and implement creative ways to get employees to its doors from remote parking lots. Conversion of several large properties (Mill West, 875 Elm St., the former Hesser College and 300 Bedford St.) in Greater Manchester that have traditionally been used (primarily or in part) as office space have now transitioned into residential uses, which has actually strengthened the overall office market. Pockets of new construction/repositioned office space are now being seen, especially in Bedford. Slight, but overall improvement has been realized in the Greater Concord submarket, consisting of about 1.6 million s/f of office space, with a current vacancy rate of 14.2% compared to 15.4% in 2011. Brand new Class A office buildings have been brought on the market in downtown Concord, coinciding with the mega downtown improvement project, to the detriment of some Class B office product in the market. The project has had positive impact on demand and was cited as a key motivator for Brady Sullivan Properties in its recent purchase of three office properties downtown. The Greater Nashua submarket consists of just over 3.5 million s/f of office space with a 14.5% vacancy rate compared to 24.9% in 2011. Only five years ago the Greater Nashua office market was the most saturated with vacancy for its size, as ample affordable office supply could be found on I-495 and Rte. 128, dispelling any need for companies to move north to find attractive deals. Migration has started to materialize again as the metropolitan Boston office market is one of the strongest in the Country. The Greater Salem office submarket consists of slightly over 1 million s/f of office space and has a Q2 2016 vacancy rate of 14.5% compared to 15.3% in 2011. New construction is evident in Greater Salem, especially for medical office, but the overall absorption time can be lengthy for office vacancy. Overall, the recession of the late 2000s is beginning to seem like a distant memory. The slow, steady improvement seen in the New Hampshire office market for the past five years should continue into the foreseeable future.

Laura Nesmith is the research manager at Colliers International | New Hampshire, Manchester, NH.

Spotlight/Mid-Year Review

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New England Real Estate Journal

July 29 - August 4, 2016 21B

Residential

The Mass. 2016 luxury condominium market up 38% over same period of 2015 Mark Lippolt

Hammond Residential Real Estate Local media outlets have been abuzz this month about the identity of the buyer of the highest priced condominium unit ever to convey in the city of Boston. John Grayken, a billionaire financier and founder of the private equity firm Lone Star Funds, paid $37.5 million for the largest penthouse at Millennium Tower, on the site of the old Filene’s Department Store. General Electric CEO Jeff Immelt’s Commonwealth Ave. condo purchase garnered a great deal of news coverage. And earlier this year there was a much curiosity about well-known Bostonians who had purchased new construction units at 22 Liberty Wharf in the Seaport. According to the Massachusetts Association of Realtors, the condominium market in the Commonwealth is less than half the size of the single-family market: 53,014 single-families conveyed in 2015 versus 20,688 condominium units. There are a number of factors, however, that make this market segment particularly newsworthy: its importance to the construction industry in Boston; the increasing desire of aging “baby boomers” (those of us born between 1946 and 1964) for condominium living; and some impressive record prices. Data from MLS PIN indicate that in the luxury segment of the condominium market – units priced over $1 million -- 581 sales occurred in the first half of this year. This is an increase of 38% over the same period of 2015 and indicates the strength of this slice of the residential market. (And go back five years to the first six months of 2011 and only 208 million dollar unit sales were recorded.) While Boston dominates the million dollar condo market and accounts for 59% of the sales statewide, luxury condo sales occurred in 20 cities and towns in the first half of this year. In a number of communities, large Victorian residences are being converted into two are more condominium units with each fetching more than a million dollars. Brookline, Cambridge, Newton and Somerville, in particular, are witnessing this phenomenon and it helps account for the fact that 18 million dollar condos have sold in Somerville so far this year. In the City of Boston, the demand for condo units is so robust that all kinds of surplus properties are being converted into residences. In historic Charlestown, the Armory – formerly the home of the oldest combat regiment in the U.S. Army – is being converted into forty-two high end residences, many

with stunning city views. Symphony Court in the Fenway is a stellar example of the adaptive reuse of a former parking garage near famed Symphony Hall.A former Roman Catholic church on South End’s Shawmut Ave. is being reborn as The Lucas, described by The Boston Globe as, “an eye-popping mix of classic and contemporary architecture.” Much has been written about emerging, newly-popular neighborhoods in the City of Boston. In the luxury condo market, however, Back Bay still leads the way with 100 units closed – 29% of the city’s total. It is also noteworthy that 7 of the 10 closed condo sales over $5 million in Boston this year were Back Bay properties. The South End comes in second with 95 million dollar sales – up almost 27% from the previous year.

Data from MLS PIN indicate that in the luxury segment of the condominium market – units priced over $1 million -- 581 sales occurred in the first half of this year. One of the more interesting trends in the million dollar condo market is the explosive growth of sales in South Boston. So far this year there have been 27 million dollar condo sales in South Boston versus only 8 in the same period last year. Boston’s current building boom, both residential and commercial, has created a new concern among potential condo buyers. Debra Taylor Blair, president of LINK Listing Information Network, recently told a group of real estate agents: “Unobstructed views are one of the hottest commodities

in Boston right now.” As new towers spring up in many areas of downtown Boston, there are some condo unit owners in established buildings who are discovering that their panoramic views are suddenly blocked by a new building. The average square footage of a million dollar condo sold in Massachusetts this year is 2,068. The room count ranges from three (a handful of units in Boston) to thirteen; the average is six rooms. While there was a six bedroom unit sold, on average, there are three bedrooms in a million dollar condo.

We believe that only a firm that focuses on the high end market can provide the most appropriate pricing advice to a seller client looking to navigate the sale of a luxury condo. If you have a need as a buyer or a seller, our advice is simple: find a great real estate agent to represent your interests. Locating the right home to buy or finding the right buyer for your home is the easy part. The real challenge is dealing with all the details involved to make sure the final outcome exceeds your expectations. This is what we at Hammond do every day. 

Mark Lippolt is senior vice president of operations for Hammond Residential Real Estate, Chestnut Hill, Mass.

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22B July 29 - August 4, 2016

New England Real Estate Journal

Spotlight/Mid-Year Review

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Restaurant

As the face of our population is changing, the restaurant industry is changing Dennis Serpone

New England Restaurant Brokers Can you believe it? It was just Memorial Day...long overdue. Now we’re at the end of July, Labor Day is around the corner...with Thanksgiving and Christmas close behind. Where does the time go? Unless you’re dead, or at least don’t go out to eat often, you’re unaware of the present health, or better said, the maladies of the food and beverage industry. Your perception of  the

industry is probably skewed if you only take the family out to eat one night on the weekend. In that case you probably sense that the industry is doing great...lines everywhere you go...Friday and Saturday nights for sure. The sad truth is that the industry as a whole is barely sustaining itself. Obviously there are exceptions to every observation. One must also delineate between chain operations and the local independents. For the sake of this treatise, let’s look at a few of the well-known full service restaurants in the Greater Boston market... Legal Seafood, Capital Grille, Del Frisco’s, Davio’s, Stregga...forgetta bout it. Huge staffs, huge rents, huge prices. Yet. visit almost any time and they’re packed. You gotta love those

Millennials who make big money, don’t cook, and eat up the cache of hanging in the Seaport district. Then pair down to the casual dining segment...the Ninety-Nine, Chili’s, Applebees, and the like...very busy. Located mostly in the suburbs where the occupancy costs are scaled down, accessibility easier, and prices more affordable which allows for greater frequency of regulars. However, the Nation’s Restaurant News reports that, across the board, same store sales in the segment are down 3-5% so far this year. Of the hundreds of thousands of every type of food and beverage business in the U.S., the greatest numbers are in ‘fast food’. Whether it’s pizzerias, hamburger joints, sports bars, or acquires the story is the

same...way too much competition. America, home of the brave and the defender of liberty, doesn’t need another pizza shop. Several years ago, I spoke to the owner of a very nice and successful shop owner who had decided that he was tired of fighting for the customers in his area. He went on to explain that when he opened his place 12 years ago, his town only had four pizzerias...now there were 15, The population in 12 years didn’t grow at anywhere near that rate. The owners were simply cutting the pie into smaller pieces every time a new place opened up. If there is a bright light shining under the bushel, it’s that a growing percentage of people are opting for home delivery. In the same way that we should be thanking our police and first

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responders, we should be thanking our restaurant owners for providing a service when we don’t want to cook. Food service operators, essentially ‘small business’, drives our economy. It employs the greatest number of people, provides the greatest opportunities, and is a major source of revenue for the local, state, and federal governments. In pandering to the various unions, social activists, and liberal rabble-rousers, small businesses are being decimated by the growth to a $15 per hour minimum wage, onerous, unsustainable increases of health insurance mandates of Obamacare, and now the shortsightedness of the Dept. of Labor redefining the structure of hourly versus exempt payroll expenses. Simply put, in any business, if you have an employee (assistant manager, manager) exempt from an hourly wage, who isn’t earning just over $47,000 per year, if this person does any work over 40 hours, he must be paid time and a half for every hour. This is cruel and unusual punishment laid on small businesses. At a time when most small business are suffering from a lack of qualified help, penalizing management for helping out after their 40 hours is destroying the fabric of entrepreneurship so critical in our struggling economy. In the last half of 2016, I see the large chains expanding into locations where independents have given up and into new mixed used projects where residential and retail components co-exist and flourish. I see continued growth of lifestyle centers drawing customers away from surrounding towns. However, the huge bubble in our population, the Millennials are dumping restaurants in favor of grocerants, a grocery store that offers fresh, restaurant-quality prepared foods. Whole Foods is a perfect example. In-store dining and take-out prepared meals from grocerants have grown by 30% since 2008 and account for $10 billion in consumer spending last year. Why are Millennials opting for grocerants? According to the NPD Group, it’s because grocerants offer a wider variety of food and healthier meal options than a full-service restaurant. Grocerants also allow for Millennials to get restaurant-quality food at a slightly lower cost and much faster. As the face of our population is changing, the restaurant industry is changing...not by choice but by mandate. When you vote in November, decide whether Trump or Hillary is going to be an advantage to this totally over-regulated industry.

Dennis Serpone is president of New England Restaurant Brokers, Wakefield, Mass.

Spotlight/Mid-Year Review

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New England Real Estate Journal

July 29 - August 4, 2016 23B

Rhode Island

Multi-family, residential, industrial and retail markets powering Rhode Island real estate Peter Scotti

Peter M. Scotti & Assoc. Market conditions in Rhode Island range from a very robust residential market to a somewhat moribund office market. The retail market appears to be strengthening and the industrial market is stable to improving. Residential investment properties are in great demand, with minimal inventory. According to Rhode Island Multiple Listing Service statistics, home prices are still below the peak recorded in the first quarter of 2006. Currently the median price of a single family house is $270,000 -- up 11.7% from a year ago. Providence’s East Side, Barrington, Bristol, East Greenwich and Lincoln/ Cumberland have experienced significant appreciation in the upper end of the market. This is the way Sally Lapides, founder of Residential Properties Inc., one of the state’s most successful residential brokerage companies, sees the current housing market: “The overall residential market is strong this year. Suburban communities that have highly rated school systems are particularly high in demand. The inventory is down, and sellers are reticent to put their houses on the market before they find somewhere to live for fear that they will be ‘out on the street’ without a house to buy. “The city of Providence, particularly the East Side, is hot below $750,000. Houses that have been renovated recently and priced right are selling fast and experiencing multiple bids. The high end of the market has been hot in Barrington, Bristol, Providence’s East Side, Cumberland, East Greenwich and in many coastal towns. The second-home market has improved this year, as has the demand for multi-family homes.” High-end single family housing ($2 million plus) has seen fewer transactions in the past year, 15 to date vs. 26 for the same period last year, but with an average price increase from $2.5 million last year to $2.6 million this year. Multi-family (2-4 family) sales statewide showed increased activity and pricing, increasing from 286 sales with a median price of $139,000 last year to 300 sales and a median price of $166,000 today. Sales of 2-4 units in the East Side and Elmhurst/Mount Pleasant areas of Providence, where most student housing is located, showed stable activity but increased pricing with the median sales price on the East Side

rising almost 25% from $330,000 one year ago to $411,500 today. Elmhurst/ Mount Pleasant reported an almost 20% increase in pricing. Thanks in large part to tax incentives and other public investments, there are more than 1,000 new apartments planned in the Providence area. Many of the planned units are located in former office or commercial buildings that were vacant or under utilized. 32 Custom House St. is an example of such repurposing. The five-story mercantile building has been renovated and now includes 10 high-end residential apartments and a ground floor retail space that is set to open onAugust 1, 2016. The development received Rhode Island historic tax credits and a tax-stabilization agreement with the city. Commercial

buildings in the process of conversion include the Iron and Russell Building and the Union Trust Building on Dorrance St. (conversion of office space on the upper floors into residential apartments there has already begun). Multi-unit residential development in surrounding areas such as Warwick, Pawtucket and Woonsocket also include the renovation of existing commercial space into residential uses. Pontiac Mills in Warwick, constructed in 1863, has long sat vacant. The property is currently being renovated and converted. When it is completed, it will hold 127 residential units and retail and restaurant space. Like many conversion projects in the state, it was granted federal and state tax credits. Redevelopment of over 500,000

s/f of Class B and Class C mercantile buildings in the Providence CBD is the primary reason that vacancy rates in that sector have declined. The Providence CBD office market continues to limp along with Class A vacancy in the 10% to 12% range, stable to slightly increasing rents and very few if any new tenants entering the market. Most activity is the result of limited expansion and a reshuffling of existing tenants. Thomas Sweeney, SIOR of Sweeney Real Estate, notes that “CBD office is filling up slowly with low but steady demand and vacancy decreasing as many buildings are being redeveloped for residential uses.” The recent announcement that General Electric will be opening a new digital innovation office in Providence

with an initial employment of 100+ is very positive and is apparently the result of governor Gina Raimondo’s hands-on effort to attract new business to Rhode Island. Peter McNally, executive director of the I-195 project, reports continuing interest from a variety of regional and national corporations that are being wooed by the Raimondo administration and hopes to be able to leverage the recent announcement by GE to show that Rhode Island is open for business. •for full story visit nerej.com•

Peter Scotti, MAI is the president of Peter M. Scotti & Associates, Providence, R.I.

PETER M. SCOTTI & ASSOCIATES Real Estate

Brokerage • Appraisals Since 1998

Congratulations to

JIM MOORE Rhode Island CommeRCIal appRaIsal BoaRd RealtoR of the YeaR www.scottirealestate.com 401-421-8888 246 Hope Street, Providence, RI 02906

24B July 29 - August 4, 2016

New England Real Estate Journal

Spotlight/Mid-Year Review

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Vermont

Vermont’s Chittenden County experiencing a growing, changing commercial landscape Doug Nedde

Nedde Real Estate Chittenden County has experienced a growing, changing commercial landscape. In 2015 GlobalFoundries took over IBM’s microelectronics plant in Essex, which plans to invest $72 million in capital in the plant. BioTek Instruments, who produces microplate instrumentation and bio-analytics software in Winooski, recently began construction on a

22,000 s/f addition, indicative of a healthy business and employment landscape for Chittenden County. Indeed, the unemployment rate in Vermont has seen continued improvement having dropped from 3.7% in May 2015 to 3.1% in May 2016. The national unemployment rate was comparatively higher at 4.7% in May 2016. The Vermont economy has seen an overall increase in employment opportunities over the last year. Industrial Chittenden County is experiencing an extended period of business expansion and a rebounding economy, which has resulted in a balanced industrial market showing positive growth. Current vacancy is 5.4%,

down slightly from 5.8% in December 2015 and competing with the historic rate of 7.3%. In 2016 there has been 105,000 s/f of new construction industrial space added and absorbed. This includes a 20,000 s/f food manufacturing facility in Catamount Park in Milton, two buildings totaling 12,000 s/f at Shelburne Green in Shelburne, a 25,000 s/f addition at the Farrell warehouse/ distribution facility on Holmes Rd. in South Burlington and a 40,000 s/f building developed by Don Weston for National Chimney in Williston. In the second half of 2016 we are expecting an additional 27,000 s/f in Milton to be constructed and immediately absorbed. Overall, rental rates remain stable and the market is

only slightly undersupplied. Retail There is a consistently limited supply of retail space in Chittenden County. Coupled with growing consumer spending, this has resulted in an undersupply that should encourage new development over time. At the current vacancy rate of 4.8%, we are competing with both the 5.0% December 2015 figure and the historic average of 6.5%. The redevelopment of the downtown Burlington Mall will affect this figure. Construction plans include adding a 1.5 acre public rooftop park, 250 apartment units, convention-center style hotel, new underground parking garage, 225,000 s/f retail space and 150,000 s/f of office to the existing 160,000 s/f.

747 Pine Street, Suite 501 Burlington, VT 05401

802.651.6888

www.NeddeRealEstate.com

Over 28 Years of Experience Specializing in

ACQUISITIONS | DEVELOPMENT | BROKERAGE ASE

Warehouse with Potential for New Office Space

LE FOR

E

SAL

FOR

COLCHESTER • 10,000-67,000 SF • High bay industrial with 35’ clearance • Existing permits for additional 20,000 SF of new building • Municipal water and sewer • Ample parking and 13 loading docks • Central location close to I-89 Exit 16

FOR

SE

Highly Customizable Warehouse Space

LEA

BURLINGTON • Historic brick building • First floor retail storefront with second floor apartment • Owner occupy with your own business or lease out • Prime downtown Burlington location • Charming details with lots of natural light • Unique investment opportunity

FOR

E

SAL

ASE

LE FOR

Move-In Ready Class A Office Space SOUTH BURLINGTON

• 1,374 SF ready for fit-up or move right in • Prime location near I-89 on Hinesburg Rd • Handicapped accessible with elevator • Central A/C and natural gas • Great signage and exposure • Ample parking for clients and staff

Commercial Land MORETOWN

WILLISTON • 10,000-45,550 SF • Flexible lease terms and fit-up • Internal loading dock • Excellent signage • Includes large kitchen/break room • Highly visible location close to I-89 Exit 12 and Tafts Corners

Great Downtown Investment Property

• 13.5+/- Acres with multiple structures incl. residence/office • Winooski River frontage • Commercial zoning • 1.2 Miles off Exit 9 • A rare find • Take over the existing business or redevelop the land

FOR

SE

LEA

Retail, Office and Warehouse Space on Williston Rd SOUTH BURLINGTON

• Four suites available • Two stand retail suites with 2,505 SF each • Retail or office space with 7,340 SF and drive-in loading bay • Warehouse/distribution space from 1,228-5,910 SF • Highly customizable, landlord is fit-up friendly • Excellent location on Williston Road

Outside of the Central Business District, Essex is receiving a new mixed use development project to include a four story building with 15,000 s/f of ground level retail/commercial space and 51 residential units. We expect to see continued growth in the retail space market into 2017. Residential The rental market has been consistently strong in Chittenden County, resulting in significant new apartment construction over the past 2-3 years. As a result, the vacancy rate currently sits at a slim 2.1% with a 2.9% average annual rent increase and a 6.8% average CAP rate. This is still higher, however, than the historical average of 1.6%. It is no surprise, then, that developers have focused on the residential market and in 2016 are adding 600 new units, the largest number of new apartments constructed over a one year period since the early 1990s.These additions will primarily be built in Burlington, Essex and South Burlington. Notable new projects are 101 new affordable housing units, 44 market rate, age restricted units coming online in Colchester and South Burlington and 30 units to be constructed in the former Burlington Free Press building in downtown Burlington. Future growth is expected to include thousands more units with the help of the new Building Homes Together campaign, a task force coalition that is seeking to combine the efforts of developers and town officials in an effort to add 3,500 new housing units of varying market rates to the Chittenden County market over the next 5 years. Office The office market in Chittenden County remains over supplied with weak demand and high vacancy rates, particularly in the suburban markets. With a vacancy rate of 9.6%, office vacancy is 1.5% higher than the historic average of 8.1%. Office vacancy is lowest in Burlington’s Central Business District where you will find mostly Class A and Class B spaces. Despite some modest improvement, we expect the office market in Chittenden County to be over supplied for the foreseeable future with 76,000 s/f of planned office development for 2016. The most significant new supply is 54,000 s/f of Class A space at 88 Technology Park Dr., South Burlington. *Data provided by The Census Bureau, Bureau of Labor Statistics, Homefacts and December 2015Allen & Brooks Report. Doug Nedde is the broker/owner of Nedde Real Estate, Burlington, VT.

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Spotlight/Mid-Year Review

New England Real Estate Journal

July 29 - August 4, 2016 25B

My partnership with the Carpenters Union makes my business work. Greg Raucci President Bismark Construction Milford, CT

Few successful alliances are constructed overnight. Instead, they grow over time and evolve into long-term partnerships. That’s the case with New England Regional Council of Carpenters and Union Contractors. For decades we’ve worked together to develop a skilled and professional workforce that supports the construction industry throughout New England. Our Apprentice program is first-rate. Our specialized carpenters can excel in the most demanding environments. And ultimately, we make projects more successful.

The New England Regional Council of Carpenters. It’s time to build. To learn more, visit NERCC.org

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Back Page B July 29 - August 4, 2016

Spotlight/Mid-Year Review

New England Real Estate Journal

POWERING YOUR PROSPERITY Eric Draeger Berkshire Group Avid Golfer and Northwestern Fan Walker & Dunlop borrower since 2006

Commercial Real Estate Finance

California loans will be made pursuant to a Finance Lenders Law License from the Department of Business Oversight.

Andrew Gnazzo | 781.707.9354 | www.walkerdunlop.com California loans will be made pursuant to a Finance Lenders Law License from the Department of Business Oversight.

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Classified

Featuring

AUCTIONS 750 Boston Neck Road • Narragansett, RI 02882 Phone: 401.792.4300 Fax: 401.792.4337 Auctioneer: Michael Salvadore Jr. RI Lic. #1907 MA Lic. #380 NH Lic. #5052

Million$ of Offering$ Sale Lease Wanted

New England Real Estate Journal

Section C

Auctions • Appraisals Liquidations

CAPE COD

WANTED

email us at: [email protected]

Centerville REAL ESTATE MANA MENT

RETAIL/ COMMERCIAL LOTS

René L. Poyant, Inc.

1-4 ACRES (A) SITES ONLY GREATER BOSTON AREA

René L. Poyant, Inc. GE-

REAL ESTATE MANAGEMENT Post Office Square, 20F Camp Opechee Road

Call: Nicko Abraham Abraham Properties, Inc. 617.719.8778

Centerville, MA 02632 Tel: 508-775-0079 Fax: 508-778-5688 [email protected]

Downtown Haverhill, MA Join theNERe-Birth NY Tel: 781-878-4540

email:

WEYMOUTH RTE. 18

Medical/Professional Building NE NY Tel: 781-878-4540 FORREAL LEASE ESTATE JOURNAL

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Size: 5x6 From: Run Date: 00/00/09

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Merrimack Section: Street

•  21,400 SF building •  7,056 SF lot •  Rehab or new construction •  Merrimack River views • Mass Development Financing •  Harbor Place is Under Construction! Only $349,000 Reduced to $299,000

Call Steve DeSisto for details

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WILMINGTON, MA FOR LEASE 6,590 SQUARE FEET

Proof Approved

Section: BB

696 Main Street (Route 18), Weymouth Formerly Eye Health Care Center Near South Shore Hospital & Route 3 7,000 SF 2.3 acres, ample parking High traffic, great visibility Generous tenant improvement allowance

BELOW MARKET RATE CO-BROKER FEE: $1.00/SF/YEAR • Flex - Light Manufacturing • Paint Spray Booth Available • Direct access to I-93

Dave Ellis 617-640-7581 [email protected]

40 Kenoza Avenue • Haverhill, MA Phone: (978) 852-5559 • Fax: (978) 373-6803 email: [email protected]

Conway Commercial 137 Washington St., Norwell, MA 02061

Clients benefit from our simplified documentation, flexible pre-payment options, broad array of loan programs, competitive pricing, low fees and excellent customer service. Call us today and learn how to put our resources to use on your next multifamily property deal. (888) 825-1685

METROWEST FEATURED LISTINGS

"SUDBURY CROSSING" JOIN TJMAXX & OTHER NATIONAL TENANTS. 3,585 SF ASKING $24 $32/S.F. NNN RESTAURANT POTENTIAL CLOSED 27,000 SF 42 RM. NURSING HOME 33,000 SF RT. 126 CORNER LIGHTED LOT .CAN BE REHAB HOSPITAL REDUCED $2.25M FRAMINGHAM - STONEGATE INDUSTRIAL PARK 3,666 - 60,000 S.F. MANY CHOICES. MODERN HIGH-BAY WITH LOADING - $5.50/SF + WWW.MarleneAron.com ~ MWCRE I MARLENE ARON - 508-740-0000 cell www.metrowestcre.com

Successful Mini Golf Plus additional land for expansion and 8,000± SF of retail/ restaurant buildings • 4.8 Ac. Great location on Route 28 on Yarmouth/Hyannis line • Mini Golf (plus additional ancillary profit centers). All new greens and equipment • 2,300++ SF restaurant building. Fully leased • 5,100++ SF vacant retail/amusement/ food service for addtional income • Land for expansion - additional use zip line, nature trail, batting cages, etc. • Fantastic Cash Flow • Asking $1,975,000 Call John Shields at:

508-775-6000

www.jackconwaycommercial.com

www.wronkaltd.com

[email protected]

Construction Earth Technologies LLC.

FOR LEASE AUBURN, MA

74 Northeastern Blvd., Units 9 & 10 Nashua, NH

Site Contractors

Chase is the nation’s #1 multifamily lender, providing owners the best financing solutions for purchasing or refinancing 5+ unit apartment buildings.

781-229-2233

July 29 - August 4, 2016

Construction Earth Technologies, LLC, has practiced general building construction and heavy civil contracting since its formation in 1989. We are currently looking for road or site construction projects. We have the ability to joint venture projects with owners or developers taking an equity position. • Demolition and selective demolition • Road Construction • Site work and grading • Paving • Water, sewer and drainage • Packages specifically tailored for developers and owners to work within each project’s financing constraints

43 Nashua Road, Pepperell, MA 01463 Phone: 978-433-2780 • Fax: 978-433-9214 [email protected]

OFFICE / WAREHOUSE

Office Space 10,000, 5,000, 2,500 & 1,500 sf Warehouse Space 5,000 sf, 10,000 sf 15,000 sf, 20,000 sf 35,000 sf & 50,000 sf Convenient access to I-190, 290, 395, 495, Mass Pike & Rtes. 20 & 146

Call 978-365-4585

AUBURN INDUSTRIAL DEV. CORP. www.aidc.com

FOR SALE

PROFESSIONAL OFFICE CONDOMINIUM

$359,000

• 1,200± SF to 4,800± SF contiguous •  Easy access off Everett Turnpike at Exits 4 or 5 • Great opportunity with existing income from 1,200 SF of leased space on lower level

603-880-6655 www.prolmanrealty.com

2C July 29 - August 4, 2016

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Business / Investment For Sale

Restaurants Stores Nursing Homes

Motels Apartments Farms

Lease Wanted Businesses Condos Land

FREETOWN, MA - AUTO SALES License & Income Property

Shopping Centers Hotels Mobile Parks

3+ ACRES WITH HIGH VISIBILITY ON ROUTE 18 • Good exposure, 290 ft. of road frontage • Paved lot w/20 car front line • Used auto sales, license allows for unlimited number of cars • Garage • 4 post lift • 10 ft. door, workshop • Detached office + 2 car garage • Cape home w/in-law apartment - Appointments Only * Do Not Disturb Tenants *

$395,000

Tracy Shand Jack Conway Realtors Lakeville, MA 508-946-2290

<— ROUTE 18 —>

email: [email protected]

Acquisition Opportunity Acquisition Opportunity Income Producing Mixed-Use Asset

Income Producing Mixed-Use Asset

LEXINGTON CRE PORTFOLIO FOR SALE

428, 429, 430, 433 & 442 Marrett Road, Lexington MA • 40,000 +/- RSF contained within five (5) buildings servicing 20 or so tenants • Opportunity for today’s investors to acquire a desirable, stabilized mixed use portfolio in history laden and world renowned Lexington. • Irreplaceable location within 5 miles from Cambridge & Fresh Pond T-Stop • Eight miles from Boston’s Logan International Airport
 • Three miles from Hanscom Air Base • Excellent access to Route 128/ I-95, Route 2, Route 3, I-90 (Mass Pike) and I-93 employment markets and retail amenities

• High barriers to entry • Upside potential with improving market fundamentals • Major area employers: Shire Pharmaceutical, BAE Systems, Lincoln 
 
 Labs (MIT), Agilent Technologies, Novell, Thermo Fisher, Mitre Corp., Raytheon, IBM, Tyco, Lehay Clinic & Beth Israel Deaconess Hospital Lexington • Steps to Commuter Bus Stop • Affluent Demographics with $134,983 AHHI within one (1) mile radius • Public School consistently ranked in top MCAS

Southern, R.I. • •Southern, R.I. • 55,000 S.F./11.5 Acres 55,000 S.F./11.5 Acres ••Recent Efficient Construction Recent14 Efficient Construction ••Excellent Year Operational History • Priced 14 at 8% CAP/$450,000+ • Excellent Year OperationalNOI History • Expansion Capabilities Available • Priced at 8% CAP/$450,000+ NOI • Expansion Capabilities Available Contact Owner/Agent

[email protected]

401-295-1800 Contact Owner/Agent [email protected]

401-295-1800 PROOF Changes

New Proof

Size: 8x8.25 From: AM Run Date: 07-22-16

Proof Approved

Section: SC

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NE NY Tel: 781-878-4540 REAL ESTATE JOURNAL

A comprehensive marketing package is available upon execution of 
 Non-Disclosure Agreement. Site tours will be provided on a limited basis upon vetting buyer's interest and financial qualifications.

470 Atlantic Ave, Suite 400 Boston, MA 02210 | 781.229.2022 (W) | 617.507.5913 (F) [email protected]

www.mclaughlininvestments.com

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New England Real Estate Journal

July 29 - August 4, 2016 3C

Investment Property of the Week METHUEN, MA SOLD SEPARATELY or AS A PACKAGE

5 Pleasant Street • $1,749,000

There is a common kitchen. There are 5 common restrooms as well as 3 private full baths. The building is currently over 85% occupied and grosses over $155,000 in annual income.

The Historic Red Tavern building has 3 stories and over 40 parking spots. 26,419 total square feet. Downtown location, highway access, public transportation, central business district, corner lot.

275 Broadway • $899,000

Historic “John Hancock Masonic Lodge,” located on busy Rt. 28 in Methuen Square, directly across from the Clock Tower. 13,952 total square feet. Downtown location, free standing, highway access, public transportation, central business district, corner lot. This building is 85% occupied, but only 2 tenants. The building offers 3 stories as well as a finished basement. There is also a commercial kitchen and 4 restrooms.

Contact: Robert Palmisano

Properties Unlimited

978-686-0408 • email: [email protected]

4C July 29 - August 4, 2016

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Office / Retail Office Space Office Space Retail Space Retail Space

OFFICE BUILDING For Sale / Lease Price Reduced

For Sale

Lease Wanted Condos

FOR LEASE AVAILABLE RETAIL SPACE FALMOUTH, MA

Sale Price: $800,000 New England Realty 617.510.6249

CURRENT AVAILABLE PROPERTIES

 

HIRSCH&COMPANY (603) 886-4700 [email protected]

MANUFACTURING/DISTRIBUTION SPACES FOR LEASE

68 North Main St., Carver, MA

• 2.15 Acres • Business Zoned • 14,800 Gross Sq. Ft. • 12,800 Net Leasable Sq. Ft.

Warehouses Warehouses Sites Sites

Condos R&D R&D

NASHUA, NH 131,822± SF Ideal location for Retail Business. Bright & open. 1,600 sq. ft. interior with full high ceiling basement!

•  Property located across from popular local restaurant •  Ample on-site parking •  High visibility

CAPE COD PRIME INVESTMENT OPPORTUNITY E. FALMOUTH, MA

30 Airport Road

• • • • •

NASHUA, NH 34,348± SF

MASSACHUSETTS

49 S. Hunt Rd., Amesbury, MA 18,400 sf, subdividable to 8,800, office, loading docks & drive-in doors. $6.00 NNN HAVERHILL - PROPERTIES FOR LEASE 6.00 PSF NNN 11 Rogers Rd. - 18,700 sf w/office, loading & drive-in doors. 20' clear height. 34 Rogers Rd. - 4800 sf. Office, warehouse, 1 dock, 1 drive in

3 Capitol Street

Mixed-use Commercial Building with three residential apartments! Ideal location for nail salon! Beauty salon and Barber Shop, current tenants without these services. Operate your own business in available front space and receive rental income!

Located off Amherst Street (Route 101A) • Masonry and steel construction • Clear height 16’± • Heavy Power • Tailboard and drive in loading doors • 3,000± sf office space • Subdivides to 15,513± sf

FOR SALE CAPE COD PRIME INVESTMENT OPPORTUNITY TEATICKET, MA

MANCHESTER, NH 12,782± SF

•  Property located next to CVS, corner of Rte. 28 & Davisville Rd. •  Ample on-site parking •  High visibility

• Clear height 16’± • Tailboard and drive-in loading • Two contiguous units: 6,918± sf and 5,864± sf. Can be leased separately.

183 Ferry Rd. - 6,300 sf - 2 docks, 24' clear

34 Shelley Rd. - 10,000 sf - warehouse w/office, 1 dock, 1 drive in, 15’ clear 10 Avco Rd. - 1,600 sf office space METHUEN PROPERTIES 126 Merrimack St. - 40,000 sf subdividable, ++ power, office. Loading & drive-in doors. $6.50 NNN

Scott Companies 978-374-0034 scott-companies.net

Contact:

SC

444 East Industrial Park Drive Easy access to Route 93/101

175 Ferry Rd. - 6600 sf - 1 dock, 28' clear height - office

233 Neck Rd. - 23,186 sf, 2 loading docks, 2 drive-in doors, 14’ clear subdividable

Access via signalized intersection on 101A–0.5 miles from Route 3 Free standing–masonry and steel construction Clear height varies from 16’ to 21’ Direct rail (Pan Am) access via covered dock Tailboard and drive-in loading doors Rental rate: $3.25 per sf/NNN

Established Post Office facility available. Operating from this location for over 50 years! Convenient location on the corner of Rte. 28 & Beagle Lane •  Property located across from The Falmouth Mall •  Ample on-site parking •  High visibility

Capital Realty & Development Robert Burke 800 Gifford St. Ext., Falmouth, MA Phone: 508-566-0350 • Fax: 508-548-2525 Email: [email protected]

MILFORD, NH 38,712± SF 528 Route 13 Located 1/4 mile south of Route 101 By-pass • • • •

Very attractive campus-like environment Brick, steel, and masonry construction 18,727± sf warehouse space– 24’± high 19,985± sf of fully air-conditioned/drop ceiling light manufacturing/R&D space • Subdividable

Commercial Real Estate Solutions Serving NH & MA

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New England Real Estate Journal

July 29 - August 4, 2016 5C

MARLENE ARON @ 508-740-0000 Please visit www.marlenearon.com for all listings

MARLENE ARON @ 508-740-0000 Please visit www.marlenearon.com for all listings

FRAMINGHAM RT. 126

SUDBURY CROSSING RT. 20 3,585 s.f. RESTAURANT POSSIBLE, Join TJMAXX, The Paper Store, Rite Aid, Subway, Dominoes, Elizabeth Grady, Sleepy's, Pearle Vision and many other national tenants. ASKING $24-$32/S.F. NNN

27,000 S.F. COMMERCIAL BUILDING on 33,000 s.f. corner lot at lighted intersection. HC accessible. Must sell. Vacant now.

OPEN TO OFFERS FRAMINGHAM RT. 126

SUDBURY CROSSING RT. 20 3,585 s.f. RESTAURANT POSSIBLE, Join TJMAXX, The Paper Store, Rite Aid, Subway, Dominoes, Elizabeth Grady, Sleepy's, Pearle Vision and many other national tenants. ASKING $24-$32/S.F. NNN

FRAMINGHAM - KENWOOD CENTER

27,000 S.F. COMMERCIAL BUILDING 63 FOUNTAIN STREET on 33,000 s.f. corner lot at lighted intersection. 7,000 - 10,000 S.F. CLOSED HEALTHCLUB FACITLITY WITH OR HC accessible. Must sell. Vacant now. WITHOUT POOL - GOOD FOR MEDICAL REUSE. 1ST FLOOR. 15,000 S.F. ENTIRE TOP FLOOR - FULL WINDOW LINE WITH POND VIEWS - WILL SUBDIVIDE. AVAILABLE NOW

OPEN TO OFFERS

FOR LEASE--KENWOOD FULL COMMISSION FRAMINGHAM CENTER ASKING $10STREET - $12/S.F. + 63 FOUNTAIN

FRONT BUILDING - SOLD

NEW LISTING

FORMER CVS

FOR SALE - ASKING - $4.5M 7,000 - 10,000 S.F. CLOSED HEALTHCLUB FACITLITY WITH OR WITHOUT POOL - GOOD FOR MEDICAL REUSE. 1ST!FLOOR. JOIN THE RENAISSANCE 15,000 S.F. ENTIRE TOP FLOOR - FULL WINDOW LINE WITH DOWNTOWN FRAMINGHAM IS POND VIEWS - WILL SUBDIVIDE. AVAILABLE NOW

UNDERGOING A MAJOR RENOVATION - NEW SIDEWALKS, FOR LEASE - FULL COMMISSION GRANITE CURBING, NEW ASKING $10 - $12/S.F. + INFRATRUCTURE, NEW LIGHTING AND PERMITTING FOR 470 FOR SALE - ASKING - $4.5M APARTMENTS!

FRONT BUILDING - SOLD

NEW LISTING

FORMER CVS

PRIME RETAIL OPPORTUNITIES JOIN THE

RENAISSANCE !

NEW LISTING DOWNTOWN FRAMINGHAM IS UNDERGOING A MAJOR COMING RENOVATION SOON - NEW SIDEWALKS, GRANITE CURBING, NEW FRAMINGHAM RT. 9 MARLBORO RT. 20 HOLLISTON RT. 126 LIGHTING A 855 WORCESTER RD. INFRATRUCTURE, NEW BRICK STRIP CENTER RETAIL or OFFICE AND PERMITTING FOR 470 FOR SALE TROLLEY SQUARE 1,000 - 5,500 S.F. APARTMENTS! One vacancy 50,000 s.f. strip center with Check with Marlene Aron

FRAMINGHAM RT. 9 271 WORCESTER RD. MODERN ALL GLASS STOREFRONTS Join busiest Asian Restaurant in Metrowest. 1,500 - 3,000 s.f.

ASKING $18 - $30/S.F. +

for details U.S. Post Office as anchor tenant. PRIME RETAIL OPPORTUNITIES 900 s.f. & 1,100 s.f. Former hair salon

LEASE / SALE

ASKING $25/s.f. NNN

NEW LISTING COMING

ASKING $850/m + electric. & 2nd floor available for office or apt. ASKING $695,000

6C July 29 - August 4, 2016

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Office / Retail For Sale

Office Space Office Space Retail Space Retail Space FINANCIAL DISTRICT OFFICE SPACE DOWNTOWN CROSSING BOSTON, MA

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Lease Wanted Condos Condos R&D R&D

OFFICE CONDO FOR SALE 71 Route 101A, Unit 13 Windmere Plaza Amherst, N.H.

Warehouses Warehouses Sites Sites

781 Centre Street, Brockton, MA

UNIT 13

•  $40 PSF Gross plus Utilities •  High Window Ratio • 1,700 Square Feet •  Half Floor

RONEX CORP. 781-489-6282 Ext. 11

USER / OWNER OPPORTUNITY

Property: Unit 13, 71 Rt 101A Amherst, N.H. 03031 Avail SF: 1,250 ± SF Layout: Single-story, flexible layout. Private entrance Price: $107,500.00

VEAR

[email protected] Brokers Welcome

COMMERCIAL PROPERTIES, INC.

603-882-6000 www.vear.biz

RESTAURANT / RETAIL SPACE SO. NASHUA, NH E FRE S

NTH

O 2M

1,2002,400

SQUARE FEET •  Across from Pheasant Lane Mall •  New electronic sign to advertise your business •  $22/PSF

Mixed Use Commercial/Residential Property. Located on busy Rte. 123 near Signature Healthcare and intersection of Centre St. and Quincy Ave. High traffic count, over 25,000 cars per day. Excellent location for hair/nail salon and/or professional use. Second floor is residential apartment. Loads of parking in rear. This is a move-in property and start your business with rental income upstairs. Call for personal showing and make your offer! Asking: $249,900

572 Pleasant Street, Brockton, MA

SUN PLAZA, 295 D.W. HIGHWAY

RONEX CORP. 781-489-6282 Ext. 11 •Email: [email protected]

ACTIVELY ACQUIRING Urban & Suburban

linearretail.com

High profile building and location on busy Rte. 27 near Rte. 24. Traffic count over 30,000 cars per day. 3,200 SF office space on 1ST and 2ND floor. Interior has been refurbished. Great location for law offices, insurance agency, or other professional use. Stop paying rent and take advantage of low interest rates. Call for personal showing and make our offer! Asking: $359,900

Call now: Territory: Eastern MA, Southern NH and RI

Property Types: Strip shopping centers,

Size: 5,000 SF-125,000 SF (or smaller for urban properties)

urban retail, retail condominiums, storefronts,

Price Range: $2M-$50M (typical)

banks and restaurants

retail development parcels, freestanding retail,

Aubrey Cannuscio Partner - Acquisitions | [email protected] | 781.202.3545 Rick Rostoff VP - Acquisitions | [email protected] | 781.202.3542

WILLIAM M. CALLAHAN REAL ESTATE 508-583-8000 www.callahanre.com

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New England Real Estate Journal

July 29 - August 4, 2016 7C

New England For Sale FOR LEASE FALL RIVER, MA

The building is on Route 6 at the intersection of Route 79

Lease Wanted

FALL RIVER, MA Approved for 36-48 units w/garage. Near Downtown, Bio Tech Industrial Park, Amazon Warehouse and Stop & Shop Fulfillment Center. Fall River is on a significant growth path

3,750 SF Retail/Food Turnkey Operation o  Will subdivide o  Loading dock o  All equipment from former grocery store/ seafood market and fully applianced kitchen o  SUBWAY NEIGHBOR o  Recently completely renovated

$2,000 NNN Contact: 508.789.7165

Invest Now! $1.5M

Call Michael Volpe 508-990-4280

DELUXE COMMERCIAL/INDUSTRIAL DRIVE-IN BAYS (end of dead end road) ASHLAND, MA

Coastal Commercial RE.com

Kristen - James LLC

o  Gross dimensions per unit: 65 ft. deep by 16 ft. wide o  12 ft. by 14 ft. fully insulated, automated overhead door with remote control and ’man-door‘ built into it o  12 ft. by 10 ft. office with built-in electric AC/heat unit o  Full mezzanine over the office space, accessed by a wide stairway o  Deep utility wash sink in rear of service bay o  Separate water spigot in service bay area o  Electrical outlet for welder installed o  Energy saving LED lighting throughout o  Surveillance cameras monitoring the premises o  Motion sensor activated outside lighting o  All separately metered utilities o  Gas overhead blower in the shop area

Jim Neckermann, Broker

860.883.6312

email: [email protected]

HAVERHILL, MA, Rte. 125. Across from McDonald's, Friendlies, Longhorn, Monroe, Hertz, Chinese Uno’s, Applebee’s. EXCELLENT FOOD LOCATION: CALLING ALL FRANCHISES! 44,000 VPD traffic, all utilities. 1.7 acres. Available For Sale, in part, (will subdivide) or lease. Asking $1,850,000. $12,000/month NNN or subdivide: $6,500/ month and $5,550/month KINGSTON, NH, Rte. 125 between Plaistow/Haverhill and Epping. Waterfront landmark restaurant. 10,000 sq. ft. building, housed former Pond View Restaurant, many, many upgrades just completed. Potential brewery, take out, etc. ASKING: Lease: $12/sq. ft. NNN or Buy: $750,000

ted tiva r!! o M lle Se

(508) 328-0861 or [email protected]

Gas Stations with or without Convenience Store A Sites Only Greater Boston and Vicinity

Contact:

realtytrustpropertymanagement @ gmail.com

Contact: Franny

WANTED

 

WATERFRONT CONDO OPPORTUNITY!

OFF MARKET SOUTHERN, NH Industrial/Commercial 48,000 SF Asking $5.5 million

OFF MARKET SOUTHERN, NH 6 Acres Rte. 125 Plaistow, NH Asking $2.8 million

Arthur R. Bonin

A R Bonin Companies, LLC P.O. Box 1263 • Atkinson, NH 03811

603-362-6463 office • 603-401-7994 cell [email protected] 30 Years Serving the Real Estate Market with Results and Integrity!!

8C July 29 - August 4, 2016

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New England Real Estate Journal

July 29 - August 4, 2016 9C

89 ACRES, 100,000 S.F. BUILDING Excellent Redevelopment Opportunity 275 Portsmouth Avenue, Stratham, NH Great Bay

Permitted uses include: •  Retirement communities •  Continuing Care Facilities • Educational • Medical

Snapshot

Building Type Total Building SF Property Size Year Built Construction Type Frontage Traffic Count

Academic/Institutional 100,035± 89.9± acres 1982 Masonry & steel 193'± on Portsmouth Avenue 52'± on Sandy Point Road, currently undeveloped 15,000 VPD per 2011 NHDOT

• Hospitality • R&D •  Professional offices/services • Residential

Zoning Flexible/Mixed Use Development Parking 450± spaces Elevators 1 Number of Floors 3 (partial 3rd floor) Overhead Doors 12 (11 doors access high bay space) Power 1,000 amps/3 phase Utilities Private water & sewer HVAC Oil fired forced hot water heat

Area Highlights

• Portsmouth, which serves as the cultural and commercial hub of the Seacoast region, is an easy 7 mile drive from the Property • Nearby conveniences include hospitals, pharmacies, churches, golf courses, parks, beaches, restaurants and shopping malls • The University of New Hampshire and its cultural, academic and athletic resources is only miles from the Property • Strong regional healthcare industry provides major hospital services and generates quality jobs • New Hampshire has a low tax burden, a high standard of living, a high level of education attainment and ranks high in health and safety

NAUTILUS REALTY GROUP 603-540-8380 25 Lafayette Road North Hampton, NH 03862

Licensed Brokers MA ME NH Acquisitions & Dispositions

H&R Block and Applebee’s

Population | 2010 Census: 10C July 29 - August 4, 2016

Billboard Lease

46,539 in 1 mile; 246,777Visit in 3 the miles; 623,547 5 miles paper online in nerej.com

Massachusetts

18,786 in 1 mile; 97,063 in 3 miles; 255,727 in 5 miles

New England Real Estate Journal

For

Households | 2010 Census:

Average Household Income | 2010 Census:

$73,786 in 1 mile; $76,098 in 3 miles; $86,980 in 5 miles

Established Supporting Advertisers Traffic:

25,000 cars per day; 12,000 pedestrians per day at the nearby MBTA T-station

Location | Convenience | Value

Contact:

Greg Regazzini, VP, Director of Leasing [email protected] ph: 781.321.7800, ext. 318 www.combinedproperties.com

219

MIDLAND LOW FEES | GREAT RATES | STREAMLINED PROCESS

Call (888) 825-1785 or visit www.chase.com/MFL

Construction

Corporation

QUALITY

ESTABLISHED 1945 Call for a FREE Estimate 1-888-Sealer-O or 1-800-225-4015 www.newenglandsealcoating.com

General Contracting Services Quality. Performance. Service Pre- Construction Consulting 1700 Dorchester Ave.,Managers Boston, MA 02122 Construction PERFORMANCE 617-446-1700 Design Build

www.midlandconstruction.com

Diversified Funding, Incorporated 63 Atlantic Ave., Boston, MA 02110 617-227-0893 www.diversifiedfundinginc.com

SERVICE

Fantini & GorGa

1700 Dorchester Avenue, Boston, MA 02122 Connect with Combined Properties Telephone 617.446.1700 on Facebook and Twitter

Since 1935

CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS ADVISORS

150 Presidential Way Woburn, MA 01801 781-937-5300 www.dgccpa.com

300 real Commercial St., Suite 25 rm, creating better places to live & work. A full-service estate development Training is Our Strength 265 Franklin St., Boston, MA 02110 Malden, MA 02148 www.midlandconstruction.com

Sid Spiegel, Commercial Division 400 Fifth Ave., Suite 500 617-951-2600 781-321-7800 Waltham, MA 02451 Combined Properties, Inc. | 300 Commercial St., Suite 25 | Malden, MA 02148 | 781.321.7800 | www.combinedproperties.com www.fantinigorga.com www.combinedproperties.com 856-917-9268

New England Carpenters Labor Management

sm

R

Remic

Your Property Management Solution. 617-423-7000 www.firstrealtymgt.com

750 Dorchester Ave., Boston MA 02125 800-275-6200 www.NECarpenters.org

Properties

177 Worcester St., Wellesley, MA 02481 781-237-9500 www.remicprop.com

106 River St., West Newton, MA 02465 617-969-2521 www.bostonneca.org

89 Hayden Rowe St., Hopkinton, MA 01748 888-538-7599 or 508-598-3511 www.solect.com

617-369-6600

Temple Beth Elohim Wellesley, MA Credit: Bruce Martin Photographer

Griffin Electric provides ongoing training and education for all of our employees. Preparing our team to be leaders in the electrical industry is the commitment we make to ourselves and to our clients. We firmly believe our opportunity to be the best stems from the continuous improvement of our most valuable resource –

Unlocking Value in Commercial Real Estate

our people. This dedication to training is evident in the quality of

116 Hopping Brook Rd. Holliston, MA 01746 508-429-8830 www.waynejgriffinelectric.com

the work we do.

One Burlington Woods Drive Burlington, MA 01803 781-273-5555 www.KeyPointPartners.com

Corporate Headquarters • 116 Hopping Brook Road, Holliston, MA 01746 • (508) 429-8830 Regional Offices • Charlotte, NC • Raleigh, NC • Duluth, GA • Pelham, AL www.waynejgriffinelectric.com

CT Lic ELC.0123697-E1

MA Lic A8999

King Painting Inc. 281 Winter St., Waltham, MA 02451 781-895-3270 www.vantagebuildersinc.com

85 Flagship Dr., No. Andover, MA 01845 978-683-7434 www.kingpaintinginc.com

800-402-2265 www.stonehambank.com

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New England Real Estate Journal

July 29 - August 4, 2016 11C

Massachusetts

Established Supporting Advertisers RJ O’Connell & Associates, Inc. 617-628-8888 www.weatherproofing.net

80 Montvale Ave., Stoneham, MA 02180 781-279-0180 www.rjoconnell.com

COMMERCIAL GROUP 800-833-6104 www.kinlingrovercommercial.com

35 Pond Park Road, Bay 16 Hingham, MA 02043 781-452-7121 www.phasezerodesign.com

Fafard Real Estate 1250 Hancock St., Quincy MA 02169 617-773-8150 www.wesslingarchitects.com

One Campanelli Dr., Braintree, MA 02184 781-849-1440 www.Campanelli.com

120 Quarry Dr., Milford, MA 01757 508-881-1600 www.fafardrealestate.com

10 Everberg Rd., Woburn, MA 01801 781-932-0707 www.danddnet.com

Superior Service Since 1987

One Cranberry Hill, Lexington, MA 02421 781- 862-6168 www.stubblebinecompany.com

2 Sterling Road, Unit 1

285 Circuit Street

North Billerica, MA 01862

Hanover, MA 02339

978-436-9990

781-982-5684

CALL US TODAY 1-800-SWEEPING or 781-395-1200 OUTSIDE OF NEW ENGLAND www.powersweeping.com

125 Samuel Barnet Boulevard New Bedford, MA 02745 800-544-0961 www.poyantsigns.com

Call today! 508-958-2196 www.kellyspainters.com

Improvement Company 39 Industrial Parkway Woburn, MA 01801

uspavement.com

1-800-PAVEMENT www.tectaamerica.com

www.masshousingrental.com

208 Wareham Road, Marion, MA 02738 508-748-6545 www.southcoastimprovement.com

978-560-0575 www.kspartnersllc.com

Connecticut Arnold Peck’s Commercial World 800-301-3077 www.blcompanies.com

265 Church St., New Haven, CT 06510 203-672-3300 www.marcusmillichap.com

500 Boston Post Rd., Milford, CT 06460 203-877-1345, Toll Free: 877-884-1927 www.arnoldpeckscommercialworld.com

Connecticut Chapter 203-234-6371 www.ccimct.com

Opportunities 12C July 29 - August 4, 2016

Keene • $1,200,000 38,332 SF lot. Perfect for single user or as investment. MLS #4048256 George Foskett • 603-283-1944

• $1,200,000 s has been in opertation 71276605 on • 413-774-1220

m • $775,000 zone. 3 phase. Used as ed kilns. MLS #4004864 tt • 603-283-1944

Connecticut

Greenfield • $850,000 Building can be used as a production facility or converted to office building. MLS #71160594 Mark Abramson • 413-774-1220

Lewiston • $950,000 95,000 S.F. Industrial Building offers a variety of floor. MLS #1028566 team fletcher • 207-795-9623

Newmarket • $599,900 Remodeled 7 unit mixed use. 10% CAP!! Price just reduced $100K! MLS #4046079 Patti Visconte • 603-601-1119

Manchester • $675,000 Well Maintained 11 unit in a desirable Derryfield Park area. MLS #4070650 Jon Matta • 603-625-2800 x320

ChoziCk realty, inC.

York • $499,900 25 individual rooms, fellowship hall, sound room,

Stratham • $335,000 In Home Business Opportunity! High

114A Washington visiblility on Rte 33. MLS #4077120 7 units - mixed use. MLS #4085286 Ave. kitchen, & 4 bathrooms. MLS #2749335 Christina DeYeso • 603-601-1113 Patti Visconte • 603-601-1119 x230 North Haven, CT 06473 Tamber Lewis • 207-337-3717 100 Wells St., Hartford, CT 06103 203-234-6371 860-247-7400 www.theprotogroup.com www.chozickrealty.com

www.masiello.com

n • $324,900 plan approval for an plex. MLS #4026240 k • 603-601-1109

Visit the paper online nerej.com

Established Supporting Advertisers

Portsmouth • $695,000 Prime corner lot at light with Convenience Store and 3 bedroom apartment. MLS #4089594 Patti Visconte • 603-601-1119

Hampton • $499,900 Investment Opportunity! 11% Cap!

ton • $589,000 00,000!! Prime retail Rt. 1. MLS #4049352 e • 603-601-1119

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kittery • $250,000 Ideal for someone building a portfolio of small investment properties. MLS #4085156 Peter Gluckler • 207-363-4558 x226

York • $198,500 Commercial property with potential for 3 bdrm residence on site. MLS #1036786 Bill Dignan • 207-363-4558 x222

860-447-9570 www.pequotcommercial.com Keene • $1,500/ mo. Prestigious office space located within walking distance of downtown. MLS #4048386 Bill Hutwelker • 603-283-1956

Hampton • $950/ mo. Office space with easy access to I-95 and Rte 101. MLS #4004545 Tracy Emerick • 603-601-1109

ugh • $8/ sq ft fice building for lease or ugh,NH! MLS #2816653 • 603-924-8373 x217

Peterborough • $7/ sq ft Climate controlled warehouse space for lease, built in 2004. MLS #2797377 michelle lange • 603-924-8373 x217

hampton • $7/ sq ft 10,000 SF Industrial/Warehouse w/loading dock & drive-in. Hampton. MLS #4095663 Patti visconte • 603-601-1119

1768 Litchfield Turnpike Woodbridge, CT 06525 203-389-5377 www.LMMRE.com

New York Metro 212-904-1994 www.northmarq.com

Windham • $2,558/ mo. The most sought after retail,restaurant or office space to lease In Windham!! MLS #4108170 Rick Hatton • 603-434-2374 x32

800-800-5261 www.transystems.com

$1,850/ mo. etail storefront! May be ing unit. MLS #4035627 603-434-2374 x32

Levey Miller Maretz Commercial Realtors

860-572-1936 [email protected]

877-923-9850 www.CBCWorldwide.com

Keene • $18/ sq ft 1st Floor office or retail. New building. Pick your own finish. 545 SF. MLS #4021696 George Foskett • 603-283-1944

Northern New England Peterborough • $6/ sq ft 6,343+/- total combined warehouse and office SF available for occupancy. MLS #4052300 Michelle Lange • 603-924-8373 x217

SMC

ine of commercial Brokering ServiceS

• buyer tenant representation /value analysis • business sales/valuations • hospitality ations commercial development • full corporate services

landlord representation

real estate consulting services

One Sundial Ave. Manchester, NH 03103 603-626-1144

4 Park St., Concord, NH 03301 877-500-4994 www.masiello.com

P.O. Box 4430, Manchester, NH 03108 603.623.8811 proconinc.com

25 Orchard View Drive Londonderry NH 03053 603 434-6700 www.themegcompanies.com

KW Commercial, NH Tel: 603-836-2740 www.kwcommercialNH.com

670 N. Commercial St. Manchester, NH 03101 Phone: 603-622-6223

Rhode Island NRT 3275 Post Rd., Warwick, RI 02886 401-738-2000 MoveToWarwickRI.com

Call one of our commercial real estate professionals at 401-333-0010 Ext. 500 www.cbcnrt.com

1170 Pontiac Ave., Cranston, RI 401-781-1700

www.GreaterRI.com

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New England Real Estate Journal

July 29 - August 4, 2016 13C

Auctions

New England Auctioneers Specializing in Commercial/Industrial Real Estate Corporate Office “Established in 1932’’ Branch Office P.O. BOX 247 31 Capital Drive Malvern (Philadelphia), PA 19355 West Springfield, MA 01089 (610) 853-6655 • Fax 853-6633 (413) 733-5238 • Fax 731-5946 PA Auc. Lic. # AY-000241-L MA Auc. Lic. #161

• INDUSTRIAL PLANTS • MACHINERY • • CONSTRUCTION EQUIPMENT • • COMMERCIAL, INDUSTRIAL & RESIDENTIAL REAL ESTATE • TOLL FREE 1-877-POSNIK-1 (767-6451)

visit our website at www.posnik.com • Email us at [email protected]

High Performance Auctions www.amgss.com 800.209.3900

Dale W. Schaetzke, CAI, AARE, CES, GRI

Auctioneer/Broker/Realtor®

The man with the “Golden Gavel”® SPECIALIZING IN REAL ESTATE

373 BOYLSTON ST., NEWTON, MA 02459

617-731-4455 www.paineauctioneers.com MA Lic. #120 • NH Lic. #2779 • RI Lic. #0546

P.O. Box 2114 • New Castle, NH 03854

Real Estate Auctions and Brokerage throughout the Northeast Paul McInnis - [email protected] Justin Conway - [email protected] www.paulmcinnis.com (603) 964-1301

(800) 522-8488 • (603) 436-6711 fax

• NH Lic. #2736 • MA Lic. #1541 • ME Lic. #AUC957 RI Lic. #7774 - VT Lic., #057-0002209 FL. Lic. #AU 2301 www.auctionsnewengland.com [email protected]




 





 

750 Boston Neck Road • Narragansett, RI 02882 Phone: 401.792.4300 Fax: 401.792.4337 Auctioneer: Michael Salvadore Jr. RI Lic. #1907 MA Lic. #380 NH Lic. #5052

   
 

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Auctions • Appraisals Liquidations

45 Exeter Road, P.O. Box 400  
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email us at: [email protected]

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Commercial & Residential Real Estate Auctions

www.JJManning.com 800.521.0111

Bringing Buyers and Sellers Together • Foreclosures • Private Owner Sales • Bankruptcies • Condominium Liens • Secured Party & Commissioner’s Sales • Commercial & Residential Sales

“PESCO” has been New England’s preeminent auction and appraisal firm throughout our 50 years in business, since opening in 1963. We are committed to delivering the highest quality real estate and equipment auctions as well as appraisal services to our clients for SUPERIOR results. 144 Centre Street, Holbrook, MA 02343 • Tel: 617-227-6553 Visit our website at www.pesco.com MA Lic 295, N.H 2508, R.I 4035, VT 057-0002204

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TRANZON AUCTION PROPERTIES SERVING CLIENTS IN NEW ENGLAND, NEW JERSEY & UPSTATE NEW YORK WITH OFFICES IN: PORTLAND, MAINE, WAKEFIELD, MASSACHUSETTS WESTPORT, CONNECTICUT, KENMORE, NEW YORK SOMERSET, NEW JERSEY

TRANZON AUCTION PROPERTIES SERVING CLIENTS IN NEW ENGLAND, NEW JERSEY & UPSTATE NEW YORK WITH OFFICES IN: PORTLAND, MAINE WAKEFIELD, MASSACHUSETTS WESTPORT, CONNECTICUT There are Two Ways to Sell Real Property – On the Market for Months or Off the MarketNEW in Minutes. Take Action! KENMORE, YORK HaveSOMERSET, an Auction. TheNEW AuctionJERSEY Advantage!

WE’RE SERIOUS ABOUT SERVICE! OVER 25 YEARS OF FOCUS & EXPERIENCE CHECK OUT OUR NEW MOBILE-READY WEBSITE!

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Southcoast Auctions & Realty, Inc. - George A. Collias A Reputation for Results – for over 30 years

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14C July 29 - August 4, 2016

New England Real Estate Journal

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Auctions

FORECLOSURE & SECURED PARTY'S SALE AT

PUBLIC AUCTION

CONVENIENCE STORE • GAS STATION • 5-BR HOME ON BUSY ROUTE 302 TUESDAY, AUGUST 9 AT 11:00 AM 682 EASTMAN ROAD, CONWAY, NH ID #16-232 • Mixed use income property located on an HC, Highway Commercial zoned 1.1± acre lot along heavily traveled Route 302 in the Mount Washington Valley Region • Average daily traffic count of 8,200 (seasonal 10,000) • 1,524± SF, 1-story convenience store renovated in 2008 with walk-in freezer & ample parking • Fuel dispensing equipment consists of a single island concrete pad with 2 double-sided gas pumps, canopy & 12,000 gallon underground fuel storage capacity • 2,310± SF Garrison style home that includes 7 RMS, 5 BR, 1½ BA, plus a detached 2-car barn style garage • Served by private well & septic system. SALE INCLUDES REAL ESTATE AND ALL PERSONAL PROPERTY, FIXTURES AND EQUIPMENT SUBJECT TO MORTGAGEE’S SECURITY INTEREST Tax Map 252, Lot 16. Assessed value: $364,000. 2015 taxes: $7,149. Mortgage Ref: Carroll County Registry of Deeds Book 2866, Page 623. Sale per order of Mortgagee by its Attorneys: Preti, Flaherty, Beliveau & Pachios, PLLP, Concord, NH; Gregory A. Moffett, Esq. Terms: $5,000 deposit by certified check, cashier’s or treasurer’s check, bank draft, or other form of payment acceptable to Mortgagee to bid. Balance due within 30 days. Other terms may be announced at time of sale. All information herein is believed but not warranted to be correct. The Mortgagee and its attorneys do not warrant the condition or existence of any feature described above. FOR MORE INFORMATION, PLEASE VISIT OUR WEBSITE

James R. St. Jean A U C T I O N E E R S

NH Lic. #2279 MA Lic. #838

603-734-4348

. www.jsjauctions.com

Mortgagee’s Sale at

PUBLIC AUCTIONS HOPEDALE, MA Mortgagee’s Sale

HOPEDALE COURT ORDERED 201 HOPEDALE STREET 26,000 S.F. INDUSTRIAL WAREHOUSE ON 7.5 ACRE SITE

PUBLIC AUCTION

RECEIVERSHIP SALE

THURSDAY, AUGUST 11 AT 11:00 AM THURSDAY, AUGUST 11, at 11:00 AM

AUCTION

REVERE, MA TUESDAY, JULY 26, at 12:00 PM

201 HOPEDALE STREET 26,000 S.F. INDUSTRIAL WAREHOUSE ON 7.5 ACRE SITE

This offering includes 2 parcels totaling ±7.5 acres. One portion of the site is ±2.49 acres with frontage on Hopedale Street and Boyd Road. It is improved with a ±26,359 sq. ft. masonry/steel frame building featuring loading dock, overhead doors and paved parking area for about 30 vehicles. The other portion of the site is ±5.15 acres with frontage on Hopedale Street and has development potential. This offering includes 2 parcels totaling ± 7.5 acres. One portion of the site is ± 2.49 acres with frontage Hopedale andmust Boyd Road. It is a ± 26,359 sq. ft. check masonry/steel Terms: on A deposit ofStreet $15,000 be paid byimproved certifiedwith or bank cashier’s at the frame building featuring loading dock, overhead andin paved parking area for about 30 time of sale. Property sold as is. doors Closing thirty (30) days. vehicles. The other portion of the site is ± 5.15 acres with frontage on Hopedale Street and has development potential.

BELLINGHAM, MA PUBLIC AUCTION A deposit of $15,000 must be paid by certified or bank cashier’s check at the time of sale. Property sold as is. Closing in thirty (30) days.

MORTGAGEE’S SALE zekosgroup.com

Public AuctioN TUESDAY, AUGUST 2ND

at 2:00 P.M.

11 SUMMER STREET INDUSTRIAL ZEKOSBUILDING GROUP

BELLINGHAM, MA

Z

THURSDAY, AUGUST AT1:00 1:00 PM AUCTIONEERS THURSDAY, AUGUST 1111 AT PM LIC.#104

RECEIVER’S SALE OF REAL ESTATE

• FALL RIVER, MASSACHUSETTS •

±5,535 S/F 2-STORY

COMMERCIAL/WAREHOUSE

BUILDING

“CLOSE PROXIMITY TO ALL AMENITIES“ 277 Brightman Street

FALL RIVER, MASSACHUSETTS

To be Sold on the Premises

INSPECTION: DAY OF SALE – 12:00 (NOON) TO 2:00 P.M.

Features:

• 2 Story Commercial/Warehouse Building • ±¼ S/F of Land • • ±5,535 S/F of Finished Area • Gas/Electric Heat • • 2nd Floor Office • Basement • Hardwood Floors • Vinyl Siding • • Dock Height & Ground Level Overhead Doors • Flat Roof • • Large Open Area, w/ ±30’ Ceiling Height • Parcel ID: S-15-0055 •

2% BROKER INCENTIVE OFFERED!!! Sale Per Order of Attorney James Atchison, Receiver

Of The Firm of

Shechtman Halperin Savage, LLP, 1080 Main Street Pawtucket, RI 00

Terms of Sale: $10,000. Deposit Cash or Certified Funds. Deposit to be increased to an amount equal to 10% of the Purchase Price within 5 business days. 5% Buyer’s Premium Applies. Other Terms to be Announced at Time of Sale.

Aaron Posnik

AUCTIONEERS · APPRAISERS

West Springfield, MA • Philadelphia, PA 413-733-5238 • 610-853-6655 TOLL FREE 1-877-POSNIK-1 (767-6451) MA Auc. Lic. #161 • PA Auc. Lic. #AY000241L

www.posnik.com • E-mail: [email protected]

382 Boston Turnpike, Suite 222 Shrewsbury, MA 01545 508-842-9000

59 ARCADIA STREET TWO FAMILY RESIDENCE Close to Revere Beach this two family home sits on ± .15 acres and has ± 4,746 square feet of living area. ItJust features 5 bedrooms, bathrooms, front porches off Route 126, this single story3industrial building sits on ±.23 acres and is ideal for an investor or end user. This ±6,093 sq. ft. building has masonry and rear decks. A great investment opportunity! construction and features office area, overhead door, adequate parking and 11 SUMMER STREET - INDUSTRIAL BUILDING potential for two units.

Terms: and Openbuilding Housesitsat AMand day of sale. JustBidder off RouteRegistration 126, this single story industrial on11:30 ± .23 acres is ideal for Terms: A deposit of $5,000.00 must be paid by certified or bank cashier’s check at the an investor or end user. This ± 6,093 sq. ft. building has masonary construction and A deposit of $10,000 must be paid in certified or bank check to time of sale. Property sold as is. We make no representations, warranties or guarantees office area, overhead door, parking and potential two units. as to the features accuracy ofProperty information provided urge allin bidders to(30) relyfor entirely on their register. sold as adequate is.and Closing thirty days. own inspection and investigation of the premises. Closing in thirty (30) days. Terms: A deposit of $5,000.00 must be paid by certified or bank cashier’s check at the time of sale. Property sold as is. We make no representations, warranties or guarantees as to the accuracy of information provided and urge all bidders to rely entirely on their own inspection and investigation of the premises. Closing in thirty (30) days.

zekosgroup.com zekosgroup.com

Z LIC.#104

ZEKOS GROUP Z AUCTIONEERS ZEKOS GROUP LIC.#104

382 Boston Turnpike, Suite 222 Shrewsbury, MA 01545

AUCTIONEERS 508-842-9000

382 Boston Turnpike, Suite 222 Shrewsbury, MA 01545 508-842-9000

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New England Real Estate Journal

July 29 - August 4, 2016 15C

On the Road Again!! HERE’S A UNIQUE WAY EVERYONE CAN ADVERTISE

Make Your Bid Today... See your ad in the next New England Real Estate Journal.

It Costs Nothing To Bid. Special Auction Offer Take advantage of this fabulous advertising promotion and reach the 52 year old New England Real Estate Journal cultivated readership. Reach the following commercial real estate professionals with your affordable ad. Auctions Managers Construction Investors Architecture Suppliers Engineering Owners Brokerage and more… Financial Developers



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6 SPACE AD 7-5/8” wide x 7-3/8” deep Rate card price $480 Highest bidder buys ad. No minimum

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I would like to bid $________________ for a 6 SPACE 4 SPACE 2 SPACE (circle one) to appear in next week’s New England Real Estate Journal Billboard the largest commercial/investment / development weekly newspaper in the country. Name_____________________________________________________________________________ Company___________________________________________________________________________ Phone number_______________________________ Email address______________________________

Mail, fax or email your bid to Karen Dowell x254 Postal: P. O. Box 55 Accord, MA 02018

Email: [email protected]

Phone: 781-878-4540 x254 800-654-4993 (outside MA) Fax: 781-871-1853

16C July 29 - August 4, 2016

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4 8 S W O R D S T R EE T , A U B U R N , M A

5 , 000–10 , 000 SQ. FT. pRIME OFFICE SpACE

FIRST FLOOR OF MODERN, TWO-STORY BUILDING

Conveniently Located Near Rte. 146, I-290, I-190, I-395, I-495 and the Mass. Turnpike

BRIGhT, AIRY SpACE /hIGh-SpEED DATA INFRASTRUCTURE /

RENOvATED LOBBY / AMpLE pARkING / pRIvATE OFFICES AND CONFERENCE ROOM / NEAR ShOppING AND RESTAURANTS / A must see!

A VISIT TODAY. or [email protected] SChEDULE ASCHEDULE SITE vISIT TODAY. 978.365.4585 978.365.4585 [email protected] or

Auburn IndustrIAl development CorporAtIon www.aidc.com

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New England Real Estate Journal

July 29-August 4, 2016 Inside Back Cover

116 South River Road | Bedford NH | 603.668.7000 28 Deer Street, Suite 301 | Portsmouth NH | 603.431.3001 www.nainorwoodgroup.com

Rare Opportunity: Remarkable Former Event Center For Sale 22 Garland Drive | Hampstead NH PROPERTY DATA               

Contact information

Matt Bacon | 603 637 2005 | [email protected] Pam Lynch | 603 637 2003 | [email protected] Karl Norwood | 603 657 1930 | [email protected]

116 South River Road | Bedford NH 03110 | 603 668 7000 | nainorwoodgroup.com

32,533+/- SF 9.46+/- Acres Book 3024/Page 2101 Built 1996 2 Stories FHA, Oil Central AC Private Well & Septic 130 Parking Spaces 3 Story Elevator 2 Commercial Kitchens 3-Phase 800 Amps Additional 1200 Amp Service Automatic Generator

The former Granite Rose is a high quality versatile building that was used as an event center. The building is beautifully designed and finished with exquisite landscaping and gardens. It is loaded with extras such as an elevator, paved parking for 130 cars, sprinklers, 3 phase electric service, an 8000 sq. ft. kitchen, executive offices, loading docks, and room for expansion. Easy access to Salem, Derry, Manchester, the seacoast, and Haverhill, MA. The building can be converted for many uses-brewery, winery, distillery, church, medical facility, school, etc.

FOR SALE $2,699,000

Back Cover

July 29-August 4, 2016

New England Real Estate Journal

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“ NOTHING IS CERTAIN EXCEPT DEATH AND TAXES. ” Benjamin Franklin was a very wise man, but we must say he was a complete amateur in the world of real estate sales and finance. While we can’t do much about death and taxes, Berkadia can bring certainty to property acquisition and disposition. How? First, by identifying the right asset for you. Second, by offering incomparable relationships with diverse sources of capital. Third, by servicing your asset for its entire life cycle. See? Turns out we a have a few wise men and women of our own.

B E R KA D I A .CO M / 8 0 0. 4 4 6 . 2 2 2 6

Commercial mortgage loan banking and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Investment sales/real estate brokerage business is conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In California, Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116, and Berkadia Real Estate Advisors Inc. under CA Real Estate Broker Lic. #01931050. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.aspx. © 2016 Berkadia Commercial Mortgage LLC. Berkadia® is a registered trademark of Berkadia Proprietary Holding LLC.