News
THE OTHER GAME IN FOXBOROUGH
January 27, 2010
| Not everyone driving to Foxborough has the fixin?s for a tailgate party in their trunk. People living in the new Chestnut Green mixed-use development may be hauling groceries to stock up kitchens in one of the 55 rental apartments that were completed last fall by a jv of VinCo Properties and Abrams Properties. |
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| We snapped jv partners Vince O?Neil and Matt Abrams (you can deduce how their companies got their names). VinCo picked up the property, once the Foxborough State Hospital, at auction in ?05. Overall, it consists of the apartments (60% leased), 100K SF office(50% leased) and 55k SF retail (100% leased). Still in development:73 single family houses and 60 townhouses. VinCo developed the office and retail and jv'd with Abrams on the apartments. Douglas A. King Builders and Intoccia Construction are doing the rest of the housing. Matt says the community appeals to ?someone who wants something different: a unit in a historic building with 10-foot ceilings and modern luxury finishes like stainless steel appliances.? |
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| Assessing financial news with VinCo project manager Eric Seitz, Matt says well leased, existing multifamily housing may be a good investment, but in this economy he's not planning to develop much more new product. ?Without a plethora of subsidies, you aren't building,? said Matt who has also developed multifamily in Quincy, Worcester, Lawrence, Lowell, and Boston. For Chestnut Green, state and federal historic tax credits made the project financially viable. |
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| Vince, with financial analyst Greg Patcella, said that given the tough market, the jv made concessions including two months of free rent, bringing the average effective rent to about $1700 for a two-bedroom. Vince and Matt agree they'll know the next opportunity when they see it. ?You do back-of-the-envelope gorilla math,? Matt said. Vince added, ?If I have to spend more than 10 minutes pouring over a spreadsheet, the deal won't work.? |
