'Burbs Next Hot Market?

The rush into downtown is on full-tilt, but for tenants priced out, investors and developers are already eying the next great frontier: the suburbs. We learned more at Bisnow’s 2nd Annual Capital Markets event on Monday. Welcome to Day 2 of coverage.
Campanelli acquisitions partner Stephen Murphy notes people raising families tend to return to 'burbs. The high tech sector, a key to the region’s long-term growth, needs hybrid space for its people and production that isn’t available downtown. As for investment: Stephen is always looking for arbitrage opportunities. The bloom is off the acquisitions rose for opportunistic deals. Campanelli, an event sponsor, has moved from being a net buyer during the depth of this cycle to a net seller.
New Boston Fund SVP for finance Mike Buckley invests in distress deals outside of Boston. But in this market that has escaped a dramatic distress scenario, he likes Rt 128 submarkets for suburban plays. Downtown and the Seaport are “great" for multifamily and offices, but for some tenants cost is a factor. When rents become unaffordable for small businesses, Mike says they’ll find “wonderful” buildings in the ‘burbs.
Bernkopf Goodman COO Joseph Hinderhofer and partner David Doyle tell us the firm is working on a number of new deals to acquire and reposition multifamily and distribution warehouse assets. Bernkopf Goodman, an event sponsor, is closing the sale of a 600-unit rental apartment complex in a western suburb, a sign that the incredible demand for multifamily continues. David tells us it also just closed on a $10M loan from Shem Creek Capital to redevelop The Roberts House Inn in Nantucket.
We snapped Comcast Business Class ' Cesar Gonzales and Jason Currie who were flying the flag for another event sponsor. Starting Q1 ’13, Comcast will offer business customers Internet access that reaches 300 Mbps, Jason says. Comcast has also been moving up-market, working with larger companies to set them up with digital phone lines that have 23 voice channels.
Among the 125 guests who braved the storm on Monday were Interior Architects’ Paul Comeau, whom we snapped with Erland’s Jessica Burdin and Joyce Blatt. Paul is the project director for the team designing the interior for new the 485k SF office building being built for State Street Corp at Channel Center in Fort Point. The “office of the future” will accommodate 4,500 employees witha 1,000-person cafeteria, an employee training center, and other amenities to support State Street’s move to the Innovation District.

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