This Week's Boston Deal Sheet
Mayor Michelle Wu attended the groundbreaking ceremony Friday for the first phase of the largest public housing redevelopment in Boston's history.
The $1.4B Bunker Hill Housing Redevelopment in Charlestown is expected to be a 2,699-unit mixed-income housing community, with 37% of the units income-restricted, according to a press release. The project is redeveloping a 1,110-unit public housing community.
The housing complex that stands today was built in 1940 and served as federal public housing. The 42-building public housing development is slated to be replaced by 15 new buildings developed to Passive House standards.
The development is in partnership with Boston Housing Authority, the Charlestown Resident Alliance, Joseph J. Corcoran Co., Leggat McCall Properties and Declaration Partners.
“Today’s groundbreaking shows what’s possible when we use every tool as a City and partner across different sectors and levels of government to ensure residents have access to safe, affordable, and sustainable housing," Wu said in a release. "I’m grateful to all of our partners for their critical work and look forward to the completion of this redevelopment."
FINANCING
Boston-based Boylston Properties and J.P. Morgan Global Alternatives secured a $150M loan from Northwestern Mutual to refinance the 100 Forge St. property in Arsenal Yards, the companies announced Tuesday.
The 165K SF, nine-story building opened in January and is fully occupied. The financing was brokered by JLL's capital markets team and will be used to pay off the developer's construction loan, which was sourced by Bank OZK in 2021.
The building is one of three at the mixed-use Arsenal Yards development. The other two buildings are 500 Forge and 200 Arsenal Yards Blvd. There are 10 life sciences businesses occupying the three lab buildings.
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Tishman Speyer secured $750M in construction financing for its Harvard Enterprise Research Campus in Allston. The financing package was led by Otera Capital, and the developer said it marks the largest reported deal in the U.S. this year.
Construction for the first phase of the project is slated to begin next week, with buildings set to open in late 2025 and early 2026. The first phase will total 900K SF across two lab buildings, a 343-unit apartment building and a hotel.
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Rise and BtcRE secured $23M in financing for their multifamily development in Everett. The financing consists of a $15M construction loan and $8M in joint venture equity. It will fund the construction of the 46-unit development in Everett's Commercial Triangle district. Colliers' Tom Welch, Adam Coppola and Patrick Boyle helped secure the financing.
SALES
Alexandria Real Estate Equities sold five lab buildings in Cambridge and Waltham to a joint venture of Alloy Properties and Anchor Line Partners. The properties include 780 and 790 Memorial Drive in Cambridge and 225, 266 and 275 Second Ave. in Waltham.
The 465K SF portfolio sold for $365M, according to a press release from Alexandria. The seller said the deal had an average sale price of $852 per SF and had an average capitalization rate of 5.2%.
LEASES
Milford Regional Physician Group, a subsidiary of Milford Regional Hospital, signed a long-term lease for a 22K SF medical office building in Medway, Connect CRE reported. Developer Lobisser Cos. secured financing for the building at 68A Main St., and it is scheduled to open in early spring 2024. The facility will include laboratory services, X-ray, urgent care, family medicine, pediatrics and women’s health.
PERSONNEL
Design firm CBT expanded its leadership team with the appointment of 11 new principals in its Boston and Abu Dhabi offices. The new principals include Middle East Regional Director Talitha Fabricius, Chief Information Officer Nirva Fereshetian, Chief Financial Officer Kent Southard and Director of Human Resources Kate Finn.
CONSTRUCTION & DEVELOPMENT
On Thursday, the Boston Planning & Development Agency approved seven new developments that total 1.3M SF and 123 residential units, of which 51 will be designated income-restricted. Notable projects include IQHQ's 155 North Beacon St. life sciences campus, which is set to include three lab buildings, and Related Beal's 20 and 22 Drydock Ave., a 320K SF lab development in the Raymond L. Flynn Marine Park.
The board also approved consulting services to help modernize the agency's Article 80 process. The consultant will review the process and recommend improvements for how it could act more predictably.
