Bruce Percelay Didn't Intend to Sell Record Setting Allston Building
Boston’s supercharged multifamily market is evident in Mount Vernon co-CEO Bruce Percelay’s $148M sale of three multifamily buildings he built in Allston that “dramatically” exceeded expectations. For the inside scoop, join Bruce and other experts at Bisnow's Boston Multifamily event, Jan. 15 at the Sheraton Boston, 7:30am. Sign up here!.
Bruce didn’t intend to sell the mid-market complex he developed for $74M, but the offer from buyer National Development--a new high for this cycle--was too “compelling.” He almost couldn’t afford to keep them, Bruce tells us. Next he's planning more multifamily developments in Allston, Brighton, Belmont and East Cambridge near Kendall Square, which he calls the hottest office market in the world. There’s an unprecedented number of new Boston-area apartments in development, but Bruce asks, at what point will developers tip the market into oversupply?
2015 will be a record year, with the recently developed Arlington in Back Bay possibly selling for close to $1M/rental apartment, some sources say. Another panelist at our Jan. 15 event, IPA director Jennifer Athas, declined to comment on that prospect but says 2014 metro area fundamentals have been strong: the economy is solid and the city gained 48,000 jobs. In and around Boston, 7,700 new apartments may be delivered (up from the 4,570 in 2013). New supply will be heavily concentrated in Cambridge, Somerville and Boston. On the 2015 condo front, newly built units will hit the market at Lovejoy Wharf, Pier 4 and 121 Portland St in North Station. Prices will range from $1,500/SF to $2k/SF. Raw shell space at the Chanel building on Newbury Street is selling for $1,300/SF, Jennifer says. See you at Bisnow's Boston Multifamily event, Jan. 15, Sheraton Boston, 7:30am. Register.