News
WORTH WAITING FOR
October 24, 2011
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| It's been 51 years, but finally a block of Chinatown (razed for construction of the elevated highway that once ran through downtown) has the necessary financing and market conditions to be rebuilt. Last Monday, Kirk Sykes, president of Urban Strategy America Fund; Janelle Chan, executive director of the Asian Community Development Corporation; a Chinatown resident; and Governor Deval Patrick celebrated the delivery of $13M in public financing for a multifamily project on Parcel 24. The Low Income Housing Tax Credits and subsidies are key to start construction of the 345 units, comprised of 295 rental apartments and 50 condominiums to be built at a later date. |
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| Urban Strategy America Fund?s Sean Sacks and Eliza Datta withKirk, who says that there are several public contributions making the $130M Parcel 24 development possible. The city, state and federal subsidies announced Monday are key, and the Massachusetts Department of Transportation has agreed to a 99-year ground lease on the site. Prices for LIHTC have also been rebounding strongly in Boston, while the $16B Big Dig removed the old elevated highway and ramps that once covered the site. As a result, Phase I of the development includes 200 market-rate apartments and 95 rental apartments affordable to people earning 30% to 60% of the area median income. Phase II will include 50 condominiums affordable to those earning 60% to 100% of AMI. |
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| Kirk shows us a rendering of the ADD Inc design for the tower (which will start construction in the spring and be ready for occupancy in ?14) and says that market conditions are also propitious. Demand for new supply is up because few units have been built in recent years. Vacancies are down, rents up, andconcessions eroding. As a result, he expects investors to realize returns in the high teens or more from this building. The Parcel 24 project is a JV between USA Fund, a New Boston fund, and theAsian Community Development Corp. |
