Turn to page B1 for Banker & Tradesman’s monthly coverage of all things commercial real estate.
THE FINANCIAL SERVICES AND REAL ESTATE WEEKLY FOR MASSACHUSETTS BY THE NUMBERS
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County close-up: Dukes Spotlight: Chilmark
IN PERSON
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Mike Durand got his start in the construction industry during the 1980s building single-family subdivisions in wealthy suburbs. Noticing the resurgent popularity of urban living, Durand shifted gears toward condominium developments in Boston and Brookline, where the bulk of his Back Bay Development Group’s activity is taking place.
WEEK OF MONDAY, JULY 30, 2018
COMMERCIAL REAL ESTATE BY THE NUMBERS
P AT I E N T C A P I TA L
1,700 The number of units Barnat Development permitted in Boston. See Insider Insights on page B2. Source: Sarah Barnat, president, Barnat Development
$225 million The cost of demolishing and renovating the 750,000-square-foot Hanover Mall. See Jay Fitzgerald’s story on page B5. Source: PECO Real Estate Properties
45 The number of acres of DivcoWest’s new transit-oriented mixed-use urban development, Cambridge Crossing, in East Cambridge. See Kevin Sullivan’s article on page B4. Source: DivcoWest
$5 million The amount of equity HNEF provided for the $21.5 million project by Barnat Development, an apartment complex built on a former gas station and parking lot. See Steve Adams’ story on this page. Source: Sarah Barnat, president, Barnat Development
200,000 Number of square feet in Moderna’s new biotechnology manufacturing facility in Norwood. See Week on the Web on page 2. Source: The Warren Group
USING REAL ESTATE
TO IMPROVE PUBLIC HEALTH Equity Investments Support Equitable Outcomes BY STEVE ADAMS
$2.75 The commercial real estate tax rate in Chilmark in this week’s By the Numbers on page 6. Source: town of Chilmark
300 The number of apartments PECO Real Estate Properties is adding to the renovation of Hanover Mall. See Jay Fitzgerald’s story on page B1. Source: PECO Real Estate Properties
BANKER & TRADESMAN STAFF
I
t was billed as a groundbreaking strategy to provide much-needed equity for developers of walkable and transit-friendly housing projects in Boston and Massachusetts’ economically vulnerable communities. Three years passed before the initial Healthy Neighborhoods Equity Fund (HNEF) closed its first $22.35 million
round of funding in May 2017, as banks grappled with an unfamiliar risk and reward profile before committing investments. HNEF managers reduced the target from an initial $30 million, and reached out to foundations for a second tier of capital as risk protection. With $18 million now deployed, the fund’s payoff is becoming evident in its role supporting six projects totaling nearly $160 million in development costs and generating nearly 350 apartments and condos from Beverly to Braintree. “This was a unique concept,” said Kathy McGilvray, director of investment for Massachusetts Housing Investment Corp. “The
few healthy community models out there were debt funds, but after we were able to close a few projects in the construction phase, banks could see it was a pioneering model.” HNEF is now reviewing a request for funding from Boston-based Traggorth Cos. for its second downtown Haverhill project, this one consisting of 24 loft apartments at 87 Washington St.
Checking the Boxes to Gauge Impact
The fund is jointly run by the Conservation Law Foundation and Massachusetts Housing Investment Corp., a private Continued on Page 8
11 The number of acres of open space that Shawmut and Michael Van Valkenburgh Assoc. are planning to build out in their mixed-use development, The Common. See Kevin Sullivan’s article on page B4. Source: Shawmut Design and Construction
Unless otherwise noted, all data is sourced from The Warren Group’s Mortgage Market Share Module, Loan Originator Module, Statistics Module and/or proprietary database. For more information please visit www.thewarrengroup.com/business/ datasolutions.
COMMERCIAL INTERESTS
R E TA I L C O M P E T I T I O N
Session Closes Without Comprehensive Zoning Reform Consideration
Community Banks Hope Interloper will Impact Big Bank Competition
By Scott Van Voorhis | Banker & Tradesman Columnist
By Bram Berkowitz | Banker & Tradesman Staff
Legislative Leaders Have Failed Us
Commercial Real Estate PAGE 3
Banks Prepare for Incoming JPMorgan Retail Branches
Banking & Lending PAGE 7