Banker & Tradesman August 31, 2015

Page 1

of 2015

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Est ab li s h e d 1 8 7 2

THE

FINANCIAL

www.bankerandtradesman.com

WEEK OF MONDAY, AUGUST 31, 2015

SERVICES

AND

REAL

ESTATE

WEEKLY

FOR

MASSACHUSETTS

A Publication of The Warren Group

CRE ON CAMPUS

A No-Brainer For MIT Filling In The Gaps In Kendall Square BY STEVE ADAMS BANKER & TRADESMAN STAFF

W

hen it trades in its lab goggles for a developer’s hardhat, the Massachusetts Institute of Technology is no different from any other investor looking for the highest return. In Cambridge’s Kendall Square, home to Greater Boston’s highest commercial rents and scarcest vacancies, MIT sees better uses for 8 acres of prime real estate it owns than the current jumble of parking lots and aging classroom buildings, labs and graduate housing. The final phase of permitting has begun for 1.8 million square feet of offices, labs retail shops and apartments. The project gives MIT an opportunity to cash in on the booming Kendall Square market, where average lab rents have hit $85 per square foot. “It’s going to be the most expensive space in Cambridge. It could be in excess of $100 per square foot,” predicted John Osten, a managing partner with JLL. Continued on Page B4

HSAS ON FIRE

As Deductibles Climb, So Does Demand For HSAs Big Banks Report Climbing Enrollment Numbers; Community Banks Flinch At Associated Costs BY LAURA ALIX BANKER & TRADESMAN STAFF

T

he move toward high-deductible health plans has fueled growing interest in companion health savings accounts (HSAs). Yet as more and more Americans take a hands-on approach to their health care and more insurance companies move towards higher deductibles, they are finding that their local banks can’t meet their needs. The HSA is a relatively new financial product, first established in 2003 as part of a larger piece of health care legislation. The idea behind the HSA – a tax-advantaged medical savings account available to Continued on Page 11

Home Sales And Median Prices Up Statewide Realtors Say The Numbers Don’t Tell The Whole Story

Hot Or Not: Top 10 And Bottom 10 Towns In Massachusetts 2014 MEDIAN PRICE

BY JIM MORRISON BANKER & TRADESMAN STAFF

I

n July, single-family home sales in Massachusetts had their best single month since June 2005. Condominium sales also surged in the Bay State, posting their best month since August 2007. There were 7,077 single-family sales in July 2015, a 24.31 percent increase from July 2014. There were 2,794 condo sales statewide, a 20.07 percent increase from last year. The communities that saw the biggest year-to-date gains in sales prices were Charlestown (44.95 percent), Stockbridge (30.2 percent), Princeton (30 percent), Orleans (27.58 percent) and Mattapan (26.56 percent). Nancy Roth of Hammond Residential in Charlestown said one reason for the dramatic increase in median sales prices in that neighborhood is that a couple of large, high-end singlefamilies went on the market earlier this year and drew buyers from all over the city. When those houses sold, many of the remaining buyers continued to look in Charlestown, driving up demand – and prices – on the limited

TOP 10

A SUPPLEMENT TO BANKER & TRADESMAN

BOTTOM 10

CREInsider The

A BANNER MONTH

2015 MEDIAN PRICE

2015-2015 % CHANGE

Charlestown

$664,000

$962,500

44.95%

Stockbridge

$315,000

$410,000

30.16%

Princeton

$262,500

$341,000

29.90%

Orleans

$508,500

$648,750

27.58%

Mattapan

$256,000

$324,000

26.56%

West Newbury

$421,750

$533,000

26.38%

Paxton

$218,750

$276,000

26.17%

Williamstown

$262,500

$330,000

25.71%

Sheffield

$235,000

$293,750

25.00%

Acushnet

$208,500

$257,000

23.26%

Millis

$385,000

$342,000

-11.17%

Lancaster

$321,000

$285,000

-11.21%

Hadley

$344,900

$305,000

-11.57%

Deerfield

$280,000

$246,250

-12.05%

Boxboro

$640,000

$555,000

-13.28%

West Brookfield

$212,500

$183,175

-13.80%

Cotuit

$425,000

$365,000

-14.12%

Boylston

$399,000

$325,000

-18.55%

$3,071,000

$2,475,000

-19.41%

Lanesboro

$215,750

$169,400

-21.48%

Becket

$190,000

$148,000

-22.11%

Boston

Continued on Page 8

CONTENTS

Residential .............................................................. 8

CRE Insider ............................................................ B1

Points ....................................................................... 4

Commercial & Industrial ........................................ 10

Records Section...................................................... C1

By The Numbers ....................................................... 6

Banking & Lending ................................................ 11

SUPPLEMENTS

In Person .................................................................. 7

Classified Sections ................................................. 12


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