This Week's Boston Deal Sheet
Boston developer Adam Burns has filed his second office-to-residential plan after the city extended the deadline for its conversion program.
The developer filed a proposal to convert an eight-story office building in the Fort Point neighborhood into a 77-unit residential project, the Boston Business Journal reported. Although Nuveen Real Estate owns the building, Burns is in the process of acquiring the property.
There are two tenants at the property that don't plan on renewing their leases. As of the end of next summer, just over 3K SF would be leased, the BBJ reported.
In total, Burns intends to build 92 apartment units through the city's office-to-residential conversion program. He was the first developer to apply to the program and the first to win approval for his 15-unit 281 Franklin St. project.
The tax incentive program has garnered interest from six developers that plan on building more than 500 units.
Mayor Michelle Wu launched the program last fall to provide a payment-in-lieu-of-taxes incentive for developers that pursue conversion projects. The average tax reduction would be up to 75% of the standard tax rate for up to 29 years.
The program was extended last week to December 2025 after receiving $15M in state funding. The city expects to see an additional 300 to 500 housing units created with the extension.
SALES
Suffolk University paid $30M for an 11-story office building on Tremont Street that it plans to convert into dorm rooms, the BBJ reported. The property at 101 Tremont St. was purchased from an affiliate of Sydney-based Macquarie Group.
The university plans to build between 260 and 290 beds in the building. The 79K SF property also has the popular Beantown Pub operating out of the ground floor, which the university says will continue to do business after the project is done. The school hopes to start the conversion next year and finish by the fall of 2026.
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Boston University paid $19.8M to acquire a site originally approved for a 17-story residential tower in Allston, Banker & Tradesman reported. The university bought 76 Ashford St. from Allston-based City Realty with no immediate plans for the site. City Realty secured approval for a 17-story, 254-unit residential tower last year.
FINANCING
MassDevelopment issued a $17M bond on behalf of an affiliate of Tremont Development Partners for the development of 52 affordable units in Lowell. The project is at 733 Broadway St. in the city's Acre neighborhood. It formerly housed the Merrimack Valley Food Bank warehouse.
Eastern Bank purchased the bond. Of the 52 units, 41 will be set aside for households making up to 60% of the area median income and 11 will be for those making up to 30% AMI.
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Redgate Capital Partners, North River Co. and ELV Associates secured a $62M refinancing loan for the 230-unit Addison apartment complex in East Boston. CrossHarbor Capital Partners provided the loan. Colliers' Jeff Black, Bryan Koop, Sean Burke, Kevin Phelan and Matt Lombard Jr. helped secure the loan for the joint venture.
CONSTRUCTION AND DEVELOPMENT
The Chiofaro Co. began the second phase of its $100M renovation of the 1.8M SF International Place. The second phase includes the renovation of IP Commons, which will create a new communal space that will have more seating, a new waterfall feature and new plant beds. The area will also include new event programming for local artists. The renovation will also include the revamp of its Fort Hill Plaza and grand entrance.
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Harvard University selected Urbanica to develop 40 affordable homeownership units at 65 Seattle St. in Allston. The project is adjacent to the university's campus and its Enterprise Research Campus. The development is just one of the commitments the university made as part of Phase 1 of its ERC development. The university also donated 90 Antwerp St. in Allston, which became 20 homeownership units.
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Pennrose and LGBTQ Senior Housing Inc. celebrated the opening of a 74-unit LGBTQ-friendly housing development in Hyde Park. The income-restricted development opened on Friday with Mayor Michelle Wu, Sen. Elizabeth Warren and Lt. Gov. Kim Driscoll in attendance. Of the units, eight will be set aside for households exiting homelessness.
The project involved the redevelopment of the former William Barton Rogers Middle School and consists of one- and two-bedroom units. The 54th Massachusetts Volunteer Infantry Regiment of reenactors of Hyde Park will have an office on-site. The project also includes more than 10K SF of community space for residents.
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Massport voted to approve a $12M deal with developer HRP Group that will change deed restrictions and allow homes to be built on the property at 776 Summer St. The deal will allow HRP to move forward with building 636 housing units as part of a mixed-use development that would also include life sciences and retail.
The $12M from HRP will go toward Massport's maritime operations in the area. In January 2023, the first phase of the 1.7M SF project won design approval and secured financing through debt and limited partners. The first phase consists of two new life sciences buildings and the redevelopment of three structures on the power plant site into retail space.
