Residential Building | 75 First Street | Cambridge

[bigpicture7]

This project is now ostensibly underway. During the proposal stages we discussed it previously in the infill thread. It seems worthy of its own thread now that it's underway.

It's a 90-unit residential building (w/ 20% affordable). Occupying the site of low-rise retail building which will be demo'd (former David's Shoes, which has moved down the street, etc).

Taken today (8/20):

Project details:

PB-231A

Special Permit application, PB231

www.cambridgema.gov

^Renders below from posted application graphics:

Prior article about the project:

Apartment building on track for East Cambridge, potentially bringing 90 homes and street retail - Cambridge Day

The Planning Board gave unanimous approval Tuesday for a preliminary plan at 75 First St., part of a larger development of the First Street corridor between Bent and Spring streets by the company Urban Spaces.

www.cambridgeday.com

 

[bigpicture7]

Demo is underway (8/28):

 

[as02143]

Demo is underway (8/28):

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I wonder how expensive the apartments have to be if they've gotten financing to begin construction.

 

[shmessy]

I wonder how expensive the apartments have to be if they've gotten financing to begin construction.

The fever has broken on the 10 year US treasury bond yields (albeit from highs of last year) - - the momentum down should continue soon with Jerome Powell's first of, probably, a series of .25% fed cuts beginning at the next meeting in 3 weeks. My guess is that this developer is a sign of the vanguard of the interest rate momentum. Which is truly GREAT news. Will we see 2% anytime soon on the 10? I don't think so, but the logjam of the past two years certainly seem to be easing.

10 Year Treasury Rate Market Daily Trends: Daily Treasury Yield Curve Rates | YCharts

In depth view into 10 Year Treasury Rate including historical data from 1990 to 2024, charts and stats.

ycharts.com

 

[as02143]

The fever has broken on the 10 year US treasury bond yields (albeit from highs of last year) - - the momentum down should continue soon with Jerome Powell's first of, probably, a series of .25% fed cuts beginning at the next meeting in 3 weeks. My guess is that this developer is a sign of the vanguard of the interest rate momentum. Which is truly GREAT news. Will we see 2% anytime soon on the 10? I don't think so, but the logjam of the past two years certainly seem to be easing.

10 Year Treasury Rate Market Daily Trends: Daily Treasury Yield Curve Rates | YCharts

In depth view into 10 Year Treasury Rate including historical data from 1990 to 2024, charts and stats.

ycharts.com

A potential 25bps cut still sounds like very expensive new-build loans, still.

 

[bigpicture7]

A potential 25bps cut still sounds like very expensive new-build loans, still.

While everyone is no doubt waiting for rate cuts, I might guess this developer might be willing to go out on a limb a bit sooner than others since they seem to be quite invested, long term, in this stretch of 1st Street.

Within a couple blocks of here, they recently completed this project:
https://urbanspacesllc.com/portfolio/121-first-street/

And this project:
https://urbanspacesllc.com/portfolio/axiom/

And this project
https://urbanspacesllc.com/portfolio/kendall-east/


In terms of how expensive these apartments may be, I might guess Kendall East (the latter of the 3 examples above, which has since rebranded as "Flats on First") might be a good indicator. Just a guess:

Luxury Apartments for Rent in Kendall Square | East Cambridge Apartments | Flats on First

Modern luxury apartment homes located in East Cambridge in the prestigious Kendall Square neighborhood. Minutes away from MIT! Call Today for Tours & Specials!

www.flatsonfirstapts.com

(However, note that this new building also has 20% affordable)

 

[shmessy]

A potential 25bps cut still sounds like very expensive new-build loans, still.

It's a start - - these economic fundamental sea changes aren't immediate - - they are more like turning a large ship. The .25% in September very likely will be the start of a series (continuing in December and beyond). Hell, THIS very project signifies that it may already be affecting momentum even before the first rate cut is offical. It's a slow tide, but very fundamental.