News
MULTIFAMILY WAVE
October 24, 2011
| Where do condo projects go when changing markets make them unworkable? (Our guess: The Island of Misfit Condos?) They jump into the multifamily space, much like the developers of the $170M Kensington that broke ground last week on a 381-unit rental tower. | |
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| We snapped Kensington Investment Co's J. Ralph Cole and president Harold Nash, who are now in the thick of construction on the 27-story tower that straddles Chinatown and the Midtown Cultural District. Ralph says that the project, once planned as condos with some lower-floor rental apartments, sat on a shelffrom ?06 until '09 when construction pricing was shooting off the charts. Now, they're building luxury rentals with a two bedroom likely to go for about $4,100 to $4,800/month. | |
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| Kurt Therrien is reviewing plans with Harry for the tower designed by The Architectural Team and construction managed by Suffolk Construction. Northwestern Mutual Life Insurance Co is providing $115M in construction and permanent financing and has also become an equity partner in the project. National Development, a minority partner, is providing development management services. Harry tells us that for Kensington Investment and Northwestern, this is considered a long-term hold. | |
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| Ralph, here with project coordinator Linda Pacella, expects the bulk of renters to be 25- to 35-year-old professionals, post-graduate medical students from nearby Tufts Medical Center, and a sprinkling of empty nesters who may work downtown. The building will be smoke-free, LEED Gold certifiable with a sixth-floor heated outdoor pool on a landscaped terrace, fitness center, parking for 110 vehicles, and ground-floor retail. Overall, he tells us that investors see Boston as a strong multifamily rental market. (The National Apartment Index released by Institutional Property Advisors rated Boston as the third best US market this year, up from eighth in '10.) |
