National Development » 2014

Yearly Archives: 2014

National Development teams with BDG for Cleveland Circle Project

November 17, 2014 — Boston Development Group (BDG) and National Development announced today that they are forming a joint venture to develop the site of the former Circle Cinema at the intersection of Beacon Street and Chestnut Hill Avenue in Boston. The companies will jointly develop the property. Charles River Realty Investors will provide the capital for the project.

Ted Tye, Managing Partner of National Development, stated, “We are pleased to help bring development of this landmark site to fruition. There has been a great deal of effort put forth to date from the City of Boston, Town of Brookline, and the local community. Our combined team will work to move the project forward, with an anticipated mid-2015 construction start.”

Tye and BDG project manager John Meunier indicate that the program for the two building project would be similar to the currently proposed mixed-use hotel, residential and retail plan. The 162-key hotel and 92-unit residential project with retail along Chestnut Hill Ave will have some design modifications, including an overall decrease in building area. The developers plan the residential building as an age-restricted adult community much like National Development’s award-winning Waterstone at Wellesley independent living community in Wellesley Lower Falls, in part to address neighborhood comments.

“We see a huge need for urban residential alternatives for active senior adults,” said Tye. The Circle site’s access to public transportation, retail amenities in Cleveland Circle, Boston College, the reservoir and the adjacent park make it ideal for the hotel and active adult community. We’re strongly committed to excellence in building and landscape design and creating an active streetscape.”

A new design team has been formed. The architect for the project is Boston-based Elkus Manfredi Architects with the Boston studio of Stantec providing civil engineering and landscape architecture. Newton-based Cranshaw Construction is providing pre-development services.

ND and CRRI buy Crosby Corporate Center in Bedford, MA

CHARLES RIVER REALTY INVESTORS AND NATIONAL DEVELOPMENT AQUIRE CROSBY CORPORATE CENTER IN BEDFORD, MA

NEWTON (November 6, 2014) – Charles River Realty Investors and National Development are pleased to announce the acquisition of Crosby Corporate Center for $95.5M. Crosby Corporate Center is a nine-building office park totaling 586,682 sf.

The Park is well-located at the intersection of Route 3 and Route 62 in Bedford, enabling easy access to Burlington’s deep amenity base. Crosby Corporate Center is currently 98% leased to a diverse roster of software, information technology and biotechnology companies, including Aspen Technologies who is relocating from Burlington into 143,000 sf.

Fifty-two percent (52%) of the Park’s leases roll over the next three years, allowing for value creation through tenant retention or by attracting future tenants at increased rents. The property has several unique features that, once improved, will contribute to the unique high tech campus environment including very high ceilings with abundant natural light. In addition, many of the buildings are interconnected through a series of above and below-grade tunnels.

To enhance the overall tenant experience, Crosby will be re-positioned as a Silicon Valley-like tech environment with new ownership implementing a $5 million capital program focused on high-impact aesthetic improvements. Future upgrades will include new park signage and branding, additional parking, new outdoor amenities and landscape improvements, façade renovations and updates to fitness facilities and cafes.

The property sale was effectuated by Eastdil Secured.

About Charles River Realty Investors
Charles River Realty Investors, formed in 2006, is a private equity real estate investment firm that employs the extensive operating and investment experience of its team to make value-added real estate investments on behalf of its institutional clients. The firm is currently investing Charles River Realty Fund II REIT, LLC, a $255 million discretionary fund comprised of educational endowments, foundations, pension funds and family offices. The firm has completed over $1.5 billion in investments. See www.crreal.com

About National Development
For over 25 years, National Development has been one of the most active development firms in Massachusetts. Specializing in mixed-use, retail, multi-family, commercial and senior housing projects, National Development and its affiliates have developed over 20 million square feet of space. The firm’s current high profile projects include Ink Block South End, Longwood Center, MarketStreet Lynnfield and University Station in Westwood. National Development provides development, construction, asset management and investment services. See www.natdev.com.

ND and CRRI buy 208,000 sf office building in Westwood, MA with JV partners

A joint venture of National Development/Charles River Realty Investors, New England Development and Eastern Real Estate announced the acquisition of 105 Rosemont, a 208,134 square-foot office building in Westwood, MA. 105 Rosemont is a vacant, three-story office building, once fully leased to State Street Corporation, that will be repositioned to meet the demands of today’s office tenants. The building offers large, flexible floor plates with space ranging in size from 25,000 to 208,134 square-feet.

The property is situated adjacent to University Station, which is also owned in part by the four partners in this transaction, and will be linked to the mixed-use, retail-focused development by a pedestrian connection. University Station, opening in early 2015, will feature 750,000 square-feet of retail, including Wegmans, Target, Nordstrom Rack, Sports Authority, and multiple new fast casual and high end restaurants. There will also be a state-of-the-art 135,000 square-foot Lifetime Fitness facility.

105 Rosemont has easy access from Route 128/I-95. The office building is also a short walk to the Amtrak/MBTA Route 128 Station, which offers commuter rail service to downtown Boston in 16 minutes and high speed Amtrak service to Providence, New York and Washington. This unique combination of strong demographics, amenities, unparalleled access and scenic views make 105 Rosemont an ideal office location for a wide range of local and national companies.

The new ownership will be making a significant capital investment to upgrade the building which will include a complete renovation of the main lobby to include a new café, fitness center and locker rooms, new glass curtain wall facade and outdoor landscape and signage enhancements. The new lobby will feature a green wall and stadium seating. The building is in the process of being re-branded as part of this extensive transformation and is available for immediate occupancy. Cushman & Wakefield is handling the leasing for the ownership group.

National Development purchases The Green District

Allston sale highlights hot city housing market
By Casey Ross
Globe Staff September 17, 2014

The Mount Vernon Co., which developed the Green District over the past three years, will retain five of the buildings.

In the latest measure of Boston’s white hot real estate market, a cluster of apartment buildings in Allston is being sold for one of the highest prices ever for a multifamily property in the city.

Three buildings in the Green District off Commonwealth Avenue are being purchased by National Development of Newton for nearly $150 million. The seller is The Mount Vernon Co., a Boston developer that built the complex over the last several years.

The deal, which has not yet closed, underscores surging demand for large apartment buildings in Boston, where a combination of rapid population growth and low vacancy is driving rents to record highs.

“We’re seeing a high level of demand for most of the assets on the market right now,” said Chris Sower, managing director of Boston Realty Advisors, which marketed the Green District buildings. He said more than 175 parties expressed interest in the property, including pension funds, national real estate firms, and international investors.

The Green District, so-named for its energy-saving design features, includes eight buildings near the border of Allston and Brookline. National Development is buying three buildings containing 283 apartments and 275 parking spaces. The sale price works out to about $520,000 per unit, among the highest amounts ever paid for an apartment complex in Boston.

The record price was set in 2010 by the sale of Garrison Square, a 160-unit complex in the Back Bay that sold for $612,500 a unit.

Real estate specialists said apartment properties are fetching high prices because they are seen as offering stronger returns than stocks and other investments. The rising demand is also fueling rapid development activity, with large rental complexes under construction in neighborhoods across the city.

“There is an overwhelming amount of capital looking at multifamily assets, especially in Boston,” said Travis D’Amato, a senior vice president for the real estate firm JLL. “We’re one of the top three markets in the country right now.”

National Development has been among the most active developers of apartments in recent years. The firm previously developed the Station Landing complex in Medford and is building the Ink Block residential and retail complex on the former Boston Herald property in the South End.

Tom Alperin, president of National Development, said the company sees a big opportunity in the Green District, situated along a transit line in a neighborhood that is benefiting from an influx of new stores, restaurants, and other attractions.

“We think this part of the city has a lot of potential,” Alperin said. “It’s going to be difficult for anyone to replicate this kind of product, with plus or minus 300 units, in this environment.”

The Mount Vernon Co., which developed the Green District over the past three years, will retain five of the buildings. The company’s founder, Bruce A. Percelay, said the complex helped to transform a corner of Allston that has not seen significant real estate investment in decades.

“We are especially proud of being able to make a lasting contribution to a part of the city that has not seen a new large-scale apartment project in over 50 years,” Percelay said.

One-bedroom apartments in the complex rent for about $2,100 a month, a significant discount from downtown Boston, where many newly built units are offered for twice that amount.

Alperin said National Development is buying the complex with an institutional investment partner whom he declined to identify. While the new owners see the potential for rent growth, he said, they do not expect to dramatically raise rents in the near term.

“This is not the kind of thing where we’re buying an older project and we’re going significantly raise the rents,” he said. “This is a long-term investment for us.”
Casey Ross can be reached at cross@globe.com.

2014 REFA Fall Conference

Event Date: Friday, September 5, 2014
Westin Hotel, 70 Third Avenue, Waltham, MA
7:30-8:15am Breakfast and Networking
8:00-10:00am Keynote and Panel Program

Join our panel of industry leaders for an in-depth discussion on the latest trends in the dynamic Boston Suburban Market. Hans Nordby will provide an overview and insight into the market dynamics. Our panel of some of the most active players in the suburban markets will discuss overall market influences, development projects and the current financing environment.

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A Lost Neighborhood Rises Once Again

The Ink Block mixed-use project will bring condos, apartments, and a new Whole Foods to the New York Streets area.

The developer of the Sepia condominium building celebrated its groundbreaking earlier today. The Sepia is part of the Ink Block mixed-use project currently under construction between Chinatown and the South End.

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