225 Centre @ Jackson Square | 225 Centre Street | Jamaica Plain

Re: Jackson Square/225 Centre

underground said:
I bet this place rents just fine. At any given moment of the day, walking through there is usually fine. It's just the 0.000001% of the time you see something unusual. They'll sell is as "JP! Close to the T! New Construction! Supermarket!" Renters will walk down once to check it out, probably not see anything weird, and jump on it.
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I walk on Centre Street (through this area) at night and I'm fine. Although, I am male and I know some women don't like being by themselves here at night. Also, someone above commented on the new playground in this area; don't go to that playground at night.
 
Re: Jackson Square/225 Centre

I just ran the numbers on the project and I don't understand how they can make it work...the total cost is $52mm, I see various accounts of subsidies including, DHCD, LIHTC, New Market and others. Some say they are only getting $5mm, others say more like $12mm. Let's assume $12mm to be optimistic. That's a $40mm project cost. If you assume the blended rental rate is (optimistically) $1900 per unit between "extreme affordable" units and the market rate, and operating costs are 37% of that, you're looking at a fully occupied net revenue of $1.45mm. Add $30 NNN rent at your 15k sf of retail and you have $1.9mm. Your debt service on a $40mm loan at a friendly rate of 4% over 30 years would be $2.2mm.

PS...there are only 16 resident parking spaces. That's some hardcore TOD
 
Re: Jackson Square/225 Centre

sidewalks said:
I just ran the numbers on the project and I don't understand how they can make it work...the total cost is $52mm, I see various accounts of subsidies including, DHCD, LIHTC, New Market and others. Some say they are only getting $5mm, others say more like $12mm. Let's assume $12mm to be optimistic. That's a $40mm project cost. If you assume the blended rental rate is (optimistically) $1900 per unit between "extreme affordable" units and the market rate, and operating costs are 37% of that, you're looking at a fully occupied net revenue of $1.45mm. Add $30 NNN rent at your 15k sf of retail and you have $1.9mm. Your debt service on a $40mm loan at a friendly rate of 4% over 30 years would be $2.2mm.
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I don't think you can just run back-of-the-envelope calculations like that. Those tax credits are not paid out in a lump sum (I know, for example, LIHTC is paid over 10 years) and these projects are often covered by very low interest bonds. This stuff is complicated (and I hope it stays complicated because my girlfriend's job is working almost exclusively on LIHTC and New Markets deals).
 
Re: Jackson Square/225 Centre

You're right. They are more complicated...this just imagines that the NMTC costs evaporate...which they don't. You have ongoing fees to the provider as well as tax forgiveness expenses. But even if you got a 40 year note at 3% the project would still be tight.

But you're mistaken about the LIHTC and NMTC deals...they are paid in lump sum. While the tax benefits are derived over a ten year period the credits are sold off and bought for a lump sum for a discounted amount. Depending on the market it could be a range of $.80 up to $1.05 to the dollar.

Either way, I just made the most optimistic assumptions to show the hurdle the project needs to clear.
 
Re: Jackson Square/225 Centre

armpitsOFmight said:
I walk on Centre Street (through this area) at night and I'm fine. Although, I am male and I know some women don't like being by themselves here at night. Also, someone above commented on the new playground in this area; don't go to that playground at night.
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There's a big difference between walking through a shitty neighborhood and living in one.
 
Re: Jackson Square/225 Centre

kmp1284 said:
There's a big difference between walking through a shitty neighborhood and living in one.
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Remember when the South End was shitty? Me neither.
 
Re: Jackson Square/225 Centre

It's probably worth pointing out that all the projects that used to make people assume the South End was shitty are still there. They didn't have to demolish them before gentrification moved in, and they didn't have to demolish them to get the highest housing costs in the city either.
 
Re: Jackson Square/225 Centre

It's also worth noting that the areas around the projects have been the last to gentrify and remain quite a bit cheaper than the areas further away. The South End also had quite a bit more going for it such as proximity to the Back Bay and Downtown commercial centers along with an attractive form of housing in the brownstone.
 
Re: Jackson Square/225 Centre

I'd live here if I could afford to.
 
Re: Jackson Square/225 Centre

fattony said:
Not rich enough for market rate and not poor enough for affordable subsidy?
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Such is the life of a college grad, which is highly unfortunate because Jackson Sq is a perfect place to build a community of young professionals. I would live there in a heartbeat too. T access is incredible. For the amenities we wanted (new build, A/C, gym/lounge), at the price we could afford, we ended up in Chelsea and more specifically I ended up stuck on the 116/117 bus as my mode of transit to Maverick/downtown. He gets the car. Boo.
 
Re: Jackson Square/225 Centre

kmp1284 said:
It's also worth noting that the areas around the projects have been the last to gentrify and remain quite a bit cheaper than the areas further away.
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The projects down Columbus are right in the middle of one of the ritziest parts of the neighborhood, and Castle Square and the multiple projects south of Tremont and W Dedham aren't exactly far away. It's all about proximity to the Back Bay, and the time difference getting there from right next to Jackson Sq Station as compared to the deep South End (where you're either walking a long way to the subway or taking the Silver Line Bus) is negligible. And in terms of housing stock, we're talking about a new construction building, which more or less sells itself to a certain segment of the population, especially in Boston where it's rare.
 
Re: Jackson Square/225 Centre

I just don't think Jackson square has "the bones" of the south end. The neighborhoods with the "best bones" have mostly been redeveloped. The area around JFK, fields corner and shawmut have potential...the quality of construction was decent, and the street grids are a bit better. Some areas around Franklin Park and grove hall also have some future redevelopment potential. Grove hall has a good feel. I like blue hill avenue but mattapans housing stock is decrepit and was never terribly attractive to begin with. Places like Brooklyn with intact street grids and brick housing stock lend themselves to quick change.
 
Re: Jackson Square/225 Centre

sidewalks said:
I just don't think Jackson square has "the bones" of the south end. The neighborhoods with the "best bones" have mostly been redeveloped. The area around JFK, fields corner and shawmut have potential...the quality of construction was decent, and the street grids are a bit better. Some areas around Franklin Park and grove hall also have some future redevelopment potential. Grove hall has a good feel. I like blue hill avenue but mattapans housing stock is decrepit and was never terribly attractive to begin with. Places like Brooklyn with intact street grids and brick housing stock lend themselves to quick change.
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Okay so if we assume that's all true, what would you do with this area, or other areas without "the bones" for gentrification? Let them continue to stagnate? Let lots remain vacant because they're not "ready" for development?
 
Re: Jackson Square/225 Centre

To your point, At this point in time in MA, the average package of welfare benefits (including housing) exceeds the state's median income. For those fortunate enough to get an affordable unit at 225 centre, their total package will likely exceed 60k if they have a couple of kids...so for those earning more than minimum but less than $50k (underemployed college grads) the world ain't a very fair place these days.
 
Re: Jackson Square/225 Centre

Busses,

I think it's great the development is occurring, but I wouldn't want to have my investment dollars at risk.
 
Re: Jackson Square/225 Centre

Fair enough. I was reading too deeply into your posts. :)
 
Re: Jackson Square/225 Centre

How long has this thing been under construction? Seems like FOREVER. Especially now that I'm walking by it every day.

The new park is pretty awesome, though. It's great to see all the kids enjoying it so much.
 
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