276 Border Street | East Boston | Offering Memorandum
Animated publication
276 B O R D E R S T R E E T E A S T B O S T O N , M A S S A C H U S E T T S O F F E R I N G M E M O R A N D U M
C O N T E N T S
4 6
E X E C U T I V E S U M M A R Y
I N V E S T M E N T H I G H L I G H T S
1 0
P R O P E R T Y / S I T E O V E R V I E W
1 6 1 4
Z O N I N G D E S C R I P T I O N
M A R K E T O V E R V I E W
1 8
E A S T B O S T O N D E V E L O P M E N T T I M E L I N E
E X C L U S I V E L Y O F F E R E D B Y DAV I D C AM P B E L L Executive Vice President 617.457.3345 dcampbell@hunnemanre.com
I A N M c K I N L E Y Assistant Vice President 617.457.3404 imckinley@hunnemanre.com
G I N A B A R R O S O Assistant Vice President 617.457.3261 gbarroso@hunnemanre.com
F I N A N C I N G A N D R EW KA E Y E R Executive Vice President 617.457.3207 akaeyer@hunnemanre.com
B I L L RA N D Associate 617.457.3336 wrand@hunnemanre.com
303 Congress Street | Boston, MA 02210 | 617.457.3400 | www.hunnemanre.com
Disclaimer: Information included or referred to herein is furnished by third parties and is not guaranteed as to its accuracy or completeness. You understand that all information included or referred to herein is confidential and furnished solely for the purpose of your review in connection with a potential purchase of the subject property. Independent estimates of pro forma income and expenses should be developed by you before any decision is made on whether to make any purchase. Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and are qualified in their entirety by the actual documents to which they relate. The asset owner(s), their servicers, representatives and/or brokers, including but not limited to Hunneman and their respective agents, representatives, affiliates and employees, (i) make no representations or warranties of any kind, express or implied, as to any information or projections relating to the subject asset(s), and hereby disclaim any and all such warranties or representations, and (ii) shall have no liability whatsoever arising from any errors, omissions or discrepancies in the information. Any solicitation for offers to purchase the subject asset(s) is subject to prior placement and withdrawal, cancellation or modification without notice.
SOMERVILLE 2161 E X E C U T I V E S U M M A R Y
CAMBRIDGE
ALLSTON
4
E X E C U T I V E S U M M A R Y
Hunneman has been exclusively retained to present for sale, 276 Border Street, a ±12,705 square foot warehouse building situated on 0.438 acres in an urban and densely populated area of East Boston, MA. Currently owned and occupied by Wigglesworth Machinery Company, 276 Border Street offers a unique redevelopment and/or an owner-user opportunity. East Boston has become one of the hottest development locations in and around Boston. It is a fast-growing neighborhood, boasting a major transportation hub – Logan International Airport, as well as convenient public transit access via the MBTA Blue Line. It provides an eclectic mix of commercial users, providing plenty of highly sought-after industrial space and water views.
276 Border Street is available for sale on an unpriced basis. We will be conducting tours over the coming weeks with a call-for-offers to follow.
EVERETT
BEACHMON
CHELSEA
SUFFOLK DOWNS
ORIENT HEIGHTS
EAST BOSTON
276
WOOD ISLAND
CHARLESTOWN
AIRPORT
MAVERICK
BOSTON
LOGAN AIRPORT
AQUARIUM
I N V E S T M E N T H I G H L I G H T S
6
D Y N A M I C E A S T B O S T O N L O C A T I O N W I T H W A T E R F R O N T V I E W S
D E S I R A B L E D E M O G R A P H I C S
T R A N S I T - O R I E N T E D L O C A T I O N
S T R O N G R E S I D E N T I A L M A R K E T
P R I M E E A S T B O S T O N R E D E V E L O P M E N T O P P O R T U N I T Y
7
BOSTON INNER HARBOR
MAVERICK
CHARLESTOWN
LIBERTY PLAZA
276
SUMNER TUNNEL
SANTARPIO’S PIZZA
1 0
P R O P E R T Y / S I T E O V E R V I E W
S I T E D E S C R I P T I O N
Address:
276 Border Street, East Boston, MA
Land Area:
±19,046 SF / ± 0.438 Acres
Zoning:
Waterfront Commercial Subdistrict (WC)
Easement:
15-foot Wide right-of-way
Frontage:
19.95 linear feet on Border Street
Access:
One curb cut on Border Street plus a 15-foot right-of-way through the abutter’s parking area
I M P R O V E M E N T D E T A I L S
Building Profile:
Industrial
Year Built:
1971
Building Size:
±12,705 square foot
Parking:
Paved area with a 20-foot depth
Stories:
One 1-story
C O N S T R U C T I O N
Foundation:
Concrete slab
Frame:
Steel
Roof:
Gable, metal deck with translucent skylights
Loading:
2 overhead drive-in doors
Clear Height:
±25 feet
B U I L D I N G S Y S T E M S
Lighting:
Halogen warehouse lighting
Heat:
Freestanding gas heater
Electricity:
480-amp, 3 phases
1 1
S U B D I V I S I O N P L A N O F L A N D
1 2
E A S E M E N T P L A N
1 3
Z O N I N G O V E R V I E W
1 4
276 Border Street is situated in the Waterfront Commercial Subdistrict (WC). Within the WC zone, there are a variety of uses that are allowed, from retail and multi-family to boat rental, storage and repair. However, all uses within Waterfront Subdistricts are subject to Chapter 91 of the Massachusetts General Law. Additionally, 276 Border Street is in a Designated Port Area (DPA). The Massachusetts Office of Coastal Zone Management uses Municipal Harbor Plan regulations to work with municipalities to take a comprehensive approach to planning for their DPAs. These standards include measures to preserve and enhance the capacity of the DPA to accommodate water-dependent industrial use and measures to prevent substantial exclusion of such use by any other use eligible for licensing in a DPA. In a DPA, a municipality may request flexibility for certain use standards, but must balance that flexibility with strategic elements that ensure that DPA interests are still protected. MassDEP also implements DPA policy at the project level through the Chapter 91 regulations, which govern the licensing of structures and uses in DPAs.
1 5
M A R K E T O V E R V I E W
1 6
E A S T B O S T O N M A R K E T O V E R V I E W
East Boston is considered to be at the epicenter of development and an increasingly sought-after destination due to its convenient transportation access, views of the Boston Skyline and overall proximity to surrounding areas. Reduced housing costs in comparison to Boston proper, new construction, increased amenities, and public transit access have all helped attract residents to East Boston. With a population base of more than 44,000, the number of residents has steadfastly increased creating East Boston as one of Boston’s fastest growing neighborhoods. Recent demographic trends have led to increasingdemand for urban living/working, and subsequently, public transportation. Downtown Boston as well as connections to the Orange and Green lines are just a few short stops, via the Blue Line at Maverick Station or Airport Station, from East Boston — making the area ideal for young professionals looking for easy access to the city’s employment centers. Similar to the Seaport, East Boston has seen an uptick in housing construction over the last few years. More than 500 multifamily units have come on-line here since 2014 and another 1,200 units are currently under construction. While the large number of new residential developments (including many luxury projects) has led to increased home prices and rents in East Boston, the demand for new housing remains very strong. As Boston’s urban population and employment base expand further, strong development opportunities in East Boston will be highly desirable.
P O P U L A T I O N 4 4 , 0 0 0
O N E O F B O S T O N ’ S F A S T E S T G R O W I N G N E I G H B O R H O O D S
(ESRI)
1 , 7 0 0 U N I T S C O M P L E T E D O R U N D E R C O N S T R U C T I O N I N E A S T B O S T O N I N T H E L A S T 6 Y E A R S
1 7
G R E A T E R B O S T O N M A R K E T O V E R V I E W Greater Boston continues to be an economic force through the first three quarters of 2019. With the ninth-largest GDP in the country and fifteenth largest GDP in the world, it’s one of North Americas centers for healthcare, life science, finance, tourism, education and technology. Greater Boston is home to 16 Fortune 500 Companies and some of the largest employers including Mass General, Brigham & Women’s, Oracle, Raytheon, MIT and the University of Massachusetts.
Greater Boston boasts a population of 4.9 million — ranking it one of the largest metropolitan areas in the United States.
A vibrant history, numerous cultural attractions, five professional sports teams, and some of the best shopping in the world keep more than 15 million tourists coming to the metro area annually.
It’s home to over 80 colleges and universities, anchored by world class institutes such as Harvard and MIT. Providing a large pool of talented young workers who remain attracted to the area’s burgeoning innovation economy, low unemployment rate, above-average wages and amenities. As a worldwide leader in science and tech-based industries, the metro area continues to benefit from healthcare and biotech research and development. Armed with a strong entrepreneurial spirit and a highly educated workforce, Greater Boston is seen as one of the strongest regions for venture capital funding.
1 8
4 . 9 MI L L I ON POPULATION
MED I CAL 30+ HOSPITALS INCLUDING MASS GENERAL, RANKED #1 HOSPITAL IN THE U.S.
TOUR I SM 15 MILLION VISITORS ANNUALLY
EDUCAT I ON 94.5 COLLEGE STUDENTS PER 1,000 RESIDENTS
TRANSPORTAT I ON 5 MILLION RESIDENTS & 175 TOWNS SERVICED BY THE MBTA LOGAN AIRPORT MAINTAINS 50 NON-STOP INTERNATIONAL FLIGHTS DAILY
VENTURE CAP I TAL FUND I NG $4.3 BILLION (2018)
1 9
EDUCATION & HEALTH SERVICES
PROFESSIONAL, SCIENTIFIC & BUSINESS SERVICES
TRADE, TRANSPORTATION & UTILITIES
GOVERNMENT
LEISURE & HOSPITALITY
FINANCIAL ACTIVITIES
MANUFACTURING
E M P L O Y M E N T B R E A K D O W N
MINING, LOGGING & CONSTRUCTION
OTHER
D I V E R S E E C O N O M Y While education and healthcare dominate in Greater Boston, accounting for 21% of total employment, the metro area boasts a rather diverse economy. Professional services, trade and utilities, government and tourism are major industries here as well.
O T H E R P O S I T I V E A T T R I B U T E S
• Greater Boston’s population base is young and well-educated, particularly within the Boston city limits. 25-34 year olds with a 4-year degree account for 7.6% of the adult population in the metro area.
• Within the Boston city limits roughly 35% of the population is aged 20-34 years old; ranking the city 1st in the nation.
• Boston, particularly Cambridge, has grown into a global biotech and life science hub, with many of the world’s leading pharmaceutical companies maintaining a presence here. Employment in bioscience-related jobs is about 50,000 in Boston. • Boston has emerged as a gateway city. Nationally, the U.S.’s economic strength and relative returns compared to other global market has driven an influx in foreign capital into commercial real estate. Boston has been a direct beneficiary, with foreign investors accounting for slightly less than 20% of total office sales volume year-over-year as of Q2 2017.
2 0
WONDERLAND • Necco Candy Factory: Plans to change the former candy factory into a manufacturing hub for robotics. – future 800k+ sf of renovated commercial space • Waterfront Square: 881 Class A apartments completed or under construction and a 170-key hotel
BEACHMONT
ORIENT HEIGHTS/SUFFOLK DOWNS • Suffolk Downs: Recently purchased by The HYM Investment Group, Suffolk Downs, a 161-acre site, could become one of Boston’s largest developments in recent years. HYM’s vision for the site is a large, mixed-use retail, entertainment, restaurants and residential area, similar to Somerville’s Assembly Row • The site is also a potential location for Amazon’s HQ2
SUFFOLK DOWNS
AIRPORT • Connections to Silver Line (Seaport & Financial Districts) • 17th busiest airport in US • Over 36 million passengers annually
ORIENT HEIGHTS
MAVERICK • East Boston: One of the city’s fastest growing residential communities • Clippership Wharf: 478 units 301-303 Border Street: 64 condos, 1,000 SF retail
WOOD ISLAND
HARLESTOWN
276
AQUARIUM • Direct connection to the Financial District • 35 MSF of office space • Kennedy Greenway • Abundance of restaurants, retail and hotels
AIRPORT
GOVERNMENT CENTER • Easy connections to the Green Line
6 0 - 7 0 K B L U E L I N E W E E K D A Y R I D E R A V E R A G E
MAVERICK
• Steps to North Station: Fastest growing Tech Center in Boston • Faneuil Hall: Boston’s Shopping destination with over100 retailers • Bulfinch Crossing: 800 units, 100,000 SF retail
BOSTON
AQUARIUM
The Blue Line Corridor has directly benefitted from continued urban migration in the Boston metro. The area’s population base increased by 7% from 2010-16, reaching more than 52,000 residents. This growth pattern is expected to continue in the future as the population along this corridor is set to grow by another 6.4% over the next five years. Not only is the population expanding, but it is also highly-educated. As of 2016, 38.5% of those 25 years or older living in the Blue Line Corridor held a Bachelor’s Degree or higher. This is only slightly below the statewide average of 40%. Young professionals looking for city living, proximity to public transit and more affordable rents are likely driving this trend. Though areas along the Blue Line have offered some pricing relief for apartment renters, asking rents have been climbing at a steady clip here as well; reaching $3.09/SF in 2017. New construction, particularly in East Boston, is partially responsible for this trend. Newly built multifamily properties in Boston are commanding between $3-$4/SF, which represents a $1-$2/ SF premium over product constructed before 2012.
2 1
E A S T B O S T O N D E V E L O P M E N T T I M E L I N E
276
B O S T O N E A S T
1 3 5 B R E M E N S T R E E T
T H E E D D Y
H O D G E B O I L E R W O R K S
C L I P P E R S H I P W H A R F
P O R T S I D E A T E A S T P I E R
2 2
1 3 5 B R E M E N S T R E E T 135 Bremen Street
H O D G E B O I L E R W O R K S 99 Sumner Street
C L I P P E R S H I P W H A R F 25-65 Lewis Street
Residential 94 Rental Units
Residential / Retail 95 Rental Units 740 SF Cafes 75 Parking Spaces
Residential / Retail Buildings 1 & 2: 492 Rental Units Building 3: 80 Condo Units Building 4: 114 Residential Units 30,200 SF Retail & Community Space 321 Parking Spaces
8,300 SF Commercial 110 Parking Spaces
DEVELOPER: 135 Bremen Street, LLC
DEVELOPER: The Davis Companies
DEVELOPER: Lend Lease Development
STATUS: Board Approved
STATUS: Complete
STATUS: Complete
COMPLETION DATE: TBD
COMPLETION DATE: 2018
COMPLETION DATE: Fall 2018
T H E E D D Y 10 New Street
P O R T S I D E A T E A S T P I E R 50 Lewis Street
B O S T O N E A S T 126 Border Street
Residential / Retail 258 Rental Units 5,000 SF Restaurant
Residential / Retail Phase 1: 176 Rental Units (196,000 SF) Phase 2: 296 Units (290,000 SF)
Residential 200 Units
120 Parking Spaces Harborwalk Extension Marine Facility
DEVELOPER: Gerding Edlen
DEVELOPER: Roseland Property Company
DEVELOPER: East Boston CDC
STATUS: Complete
STATUS: Complete
STATUS: Complete
COMPLETION DATE: Phase 2: September 2018
COMPLETION DATE: 2016
COMPLETION DATE: Winter 2017
2 3
276 B O R D E R S T R E E T E A S T B O S T O N , M A S S A C H U S E T T S
E X C L U S I V E L Y O F F E R E D B Y DAV I D C AM P B E L L Executive Vice President 617.457.3345 dcampbell@hunnemanre.com
I A N M c K I N L E Y Assistant Vice President 617.457.3404 imckinley@hunnemanre.com
G I N A B A R R O S O Assistant Vice President 617.457.3261 gbarroso@hunnemanre.com
F I N A N C I N G A N D R EW KA E Y E R Executive Vice President 617.457.3207 akaeyer@hunnemanre.com
B I L L RA N D Associate 617.457.3336 wrand@hunnemanre.com
Made with FlippingBook Publishing Software