Development: Ground-up Rental Construction
Address: 23-31 Bridge Street, Quincy, MA
Neighborhood: Quincy – Quincy Center
Units: 60
Year Built: 2018
Building Use(s): Residential
Boston Property Ventures, LLC (BPV) acquired the 23-31 Bridge Street, Quincy site, which consisted of 3 stand-alone buildings in Q1 of 2017. The Property is adjacent to BPV’s Triple 9 Brookside project, a 53-unit luxury apartment development that was completed fall 2016. The Property will serve as the second phase of the Triple 9 project and will be known as Triple 9 Hillside. The acquisition of the Property presented a rare opportunity to control and develop nearly three acres of contiguous land in downtown Quincy.
Construction began in Summer of 2017 and the finished building will consist of 60 rental units over five stories, a two-floor parking garage underneath with 83 parking spots (a ratio of 1.4 per unit), 65,800 sf of living area which include the same high-end amenities provided in Triple 9 Brookside (state-of-the-art gym, spacious roof deck, private balconies and a billiard/recreational room).
BPV is actively leasing up the property.
Development: Ground-up Condominium Construction
Address: 999 Hancock Street, Quincy, MA
Neighborhood: Quincy – Quincy Center
Units: 53
Year Built: 2017
Building Use(s): Residential
Boston Property Ventures, LLC (BPV) purchased this 2.16 acre parcel of land, formerly the Temple Beth El Synagogue site, in the Spring of 2015 with the view to create an entirely new luxury residential community made up of 113 residential condo and rental units. Triple 9 Brookside represents the first phase of the development consisting of 53-units over 63,000-sf and five stories. The building also boasts a 2-story, 66-space underground parking garage, luxury amenities including; patio and spacious roof deck, private balconies, open-concept living, common state-of-the-art gym and billiard room.
BPV navigated through many complicated site conditions, including the river way setback restrictions to quickly create one of Quincy’s first high-end residential condo buildings. Located within 0.5 miles from Quincy Centre’s T-station on the MBTA’s Red Line, which services downtown Boston via rapid transit. Construction was completed in the Fall of 2016 and 100% of the units were sold within 18 months of handover.
Development: Ground-up Condominium Construction
Address: The Mezz South Boston, Boston, MA
Neighborhood: South Boston
Units: 43
Year Built: 2018
Building Use(s):
PROPERTY: 5-story, Class A residential & commercial asset currently under construction, comprising of 42-residential units and a commercial unit at street level, a two-floor parking garage in the lower two levels consisting of 43 parking spaces. The 35,500 SF of living area includes a billiard/recreational room, spacious building-common roof deck and private balconies in over half of the units.
Located on West Broadway Street, the Property sits directly in the middle of South Boston’s busiest street, providing endless dining options and numerous local retailers.
PRICING: Purchased for $8.25MM ($192k/unit) in Q3 2018, BPV anticipates the remaining construction expense to amount to an additional $391k/unit (HC & SC).
OPPORTUNITY
INVESTMENT RATIONALE
Development: Rental
Address: 10 Merrymount Road, Quincy, MA
Neighborhood: Quincy – Quincy Center
Units: 23
Year Built: 2015
Building Use(s): Rental
BPV set out to convert this 20,000 square foot commercial asset into a 23-unit residential rental building in the city of Quincy, MA. The neighborhood is very convenient for commuting to downtown Boston. BPV also purchased a two-family residential development next to this building to demolish and construct a parking complex to serve the new building. The properties were acquired for $1.8 million. 70% of the project cost was covered by debt, 30% by equity.
Permitting was particularly difficult on this property, but BPV’s professional approach and local permitting expertise were instrumental in winning approval for the project. Each BPV business unit was involved in this project, adding efficiency and value at every stage. BPV was able to maximize the value of the property by adding a floor to the building and building an add-on to the side of the building to satisfy building code requirements. This allowed more internal space to be used by the residents. The property was completed in 10 months, and is currently rented out at 100% occupancy. Appraisal values the property at approximately $8 million.
Development: Condo Redevelopment
Address: 355 Congress Street, Boston, MA
Neighborhood: Boston - Seaport
Units: 9
Year Built: 2019
Building Use(s):
Located in Boston’s Seaport District, the city’s most dynamic development hub, 355 Congress represented the rare opportunity to convert one of the district’s oldest, most traditional buildings into 9 modern high-end residential living spaces while maintaining 3 existing commercial spaces. The commercial space consists of 2 offices and one iconic local restaurant/bar. The residential condominiums range from studio to three-bedrooms in size.
Development: Condominium Conversion
Address: 3 Union Park, Boston, MA
Neighborhood: South End
Units: 3
Year Built: 2017
Building Use(s): Residential/Commercial
BPV set out to convert this 20,000 square foot commercial asset into a 23-unit residential rental building in the city of Quincy, MA. The neighborhood is very convenient for commuting to downtown Boston. BPV also purchased a two-family residential development next to this building to demolish and construct a parking complex to serve the new building. The properties were acquired for $1.8 million. 70% of the project cost was covered by debt, 30% by equity.
Permitting was particularly difficult on this property, but BPV’s professional approach and local permitting expertise were instrumental in winning approval for the project. Each BPV business unit was involved in this project, adding efficiency and value at every stage. BPV was able to maximize the value of the property by adding a floor to the building and building an add-on to the side of the building to satisfy building code requirements. This allowed more internal space to be used by the residents. The property was completed in 10 months, and is currently rented out at 100% occupancy. Appraisal values the property at approximately $8 million.
Development: Condominium conversion
Address: 6 Newbury Street, Boston, MA
Neighborhood: Back Bay
Units: 1
Year Built: 2016
Building Use(s): Residential
A broker called Boston Property Ventures (BPV) with a property that was on the market, but had recently fallen out of agreement. The property was part of a newly-constructed shell with 6,000 square feet of open space. It was centrally located in a high-value district, and a combination of its location and the market demand for luxury condominiums suggested this was a prime opportunity for BPV to further establish itself as a developer of luxury condominiums. The ground and second floors of the building were occupied by a Chanel retail location and the other floors had already sold. BPV bought the remaining floor for $7.25 million, with a 70%-30% debt-equity ratio.
Turning an open 6,000 square feet of living space into a high-end condominium provided unique challenges for the team at BPV. The floor plan had to be designed just right, in order to achieve the highest price point. Several architectural plans were designed to accommodate constraints in the original building shell. The final floor plan was executed flawlessly by the construction team, perfectly complementing the location of the unit as well as the available space. The finished unit sold 18 months after acquisition for $11.5 million, the most expensive condominium sold in Boston at the time of sale.
Development: Condominium conversion
Address: 244 Marlborough Street, Boston, MA
Neighborhood: Back Bay
Units: 2
Year Built: 2016
Building Use(s): Residential
Boston Property Ventures (BPV) received the opportunity to develop a 7,000 square foot Victorian brownstone home on highly sought after Marlborough Street in Boston’s Back Bay. This opportunity was an off-the-market sale found through a personal relationship with the seller. The previous owner of this single-family home had passed away, leaving the home as an estate sale. The relatively inefficient nature of the sales process allowed BPV to acquire the property at an advantageous price. The initial purchase was made with 75% debt, 25% equity.
BPV was able to take this old Victorian building and modernize it into two units: a bottom-level triplex and top-level duplex. The Back Bay Architectural Commission imposed a few constraints on the project, including declining to allow BPV to add a floor to the building. However, BPV was able to work with the Commission to optimize space utilization. BPV designed a staircase that was complex and intricate to build, but which connected all floors of the bottom triplex in a unique and elegant way. BPV’s forward thinking experts were able to apply recent building code changes in order to reallocate internal space, allowing for a better layout with more efficient space usage. BPV’s personal relationships with the seller, local architects, the Back Bay Architectural Commission, and local contractors contributed to the successful completion of this project. The finished project sold after 18 months for $11.3 million.
Development: Residential Condo
Address: 59 Auburn Street, Brookline, MA
Neighborhood: Brookline Village
Units: 3
Year Built: 2019
Building Use(s): Residential
Auburn Street was acquired by Boston Property Ventures, LLC (BPV) as on off market deal through a broker relationship. Located within walking distance of one of Brookline’s’ busiest hubs with access to both transport and entertainment, BPV immediately saw the potential to convert the 3 unit rental into high-end, luxury condominiums.
Utilizing an unfinished basement and altering the pitch of the existing roof, BPV was able to increase the livable square footage by 2,000 SF and introduce 4 livable floors consisting of a bottom duplex, middle and top level floor-through units. Private rear patio and upper floor decks were introduced, providing outdoor living space for all future buyers.
Of the $3.8MM needed to complete the project, only $260k (7%) was brought in as equity. An additional $730k (19%) of Mezzanine debt was raised through Boston Property Capital LLC, providing a return for both entities and maximizing the developments ROI & IRR.
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