SKY Everett | 114 Spring Street | Everett

DZH22 said:
Holy crap, just a 2 month approval process for Everett vs like 3 years for Boston? That's insane.
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Yes I think this is insane but it's also why development needs to garner more support and be galvanized in sprawling areas like Revere, Everett, Cambridge, Somerville (too nimby?). This right here is all the evidence you need that we need to start investing and building nice projects in these places. Chelsea alone has a lot of potential, right next to Boston
 
AndrewOnTheMBTA said:
Yes I think this is insane but it's also why development needs to garner more support and be galvanized in sprawling areas like Revere, Everett, Cambridge, Somerville (too nimby?). This right here is all the evidence you need that we need to start investing and building nice projects in these places. Chelsea alone has a lot of potential, right next to Boston
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Challenge I see is that some of these areas are difficult to access by transit (Everett for example). So Sky is going to be a car-centric development. None of the locations mentioned need more car traffic.
 
stoweker said:
Just because it's approved doesn't mean it's going to happen. This deal is 2 cycles away... also middle-high end housing is going to get creamed, we are at the tail end of the multi cycle right now once millenials move out to the burbs. Go to the casino down the street and put your chips on single family developments
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This...SFH market is completely insane right now. Hard to believe it’s being driven only by millennials/and can keep going. That being said, Everett seems to be enjoying a nice little renaissance. Who’s to say it can’t keep going ?
 
stoweker said:
it's not everret that's the issue (although it will be interesting to see how all of the new supply in everret and revere that's U/C or in pipeline gets absorbed), it's building this property at a cost basis that makes sense. the location of the property within the submarket is super challenging, high rise construction is really expensive, and I don't think you can get the rents for a 22 story tower to make it a financially sound investment. The other product going up is podium / wrap product - much cheaper rents - this thing is going to need to get like $4,000 / month 1br rents to justify the construction and i don't see that happening in this location.
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Plenty of new buildings of this scale in the Fenway and Seaport are currently asking well below $4k / month for 1 bedrooms, and they're throwing in 1.5 - 2 months rent free (see, e.g., here, where the cheapest listed 1br is $2,915 and the most expensive is $3,515, plus up to 1.5 months free). Tower 1brs in the new Assembly buildings ask $3k, with nearly two months free on top. So no way this project in Everett (which surely has cheaper land and lower development costs) will need $4k to justify construction.

But ahh, isn't it refreshing to see economics be the deciding factor as to what gets built and what doesn't, rather than regulation?
 
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stoweker said:
1.5 - 2 months free is crushing people. my company's urban multi family investments are getting creamed right now because of the roll down on chunk rents and addition of concessions - it's a brutal knife fight. occupancy has come back, but rates are still way way off. also land cost is cheap but it still costs a fortune to build highrise. you could build it in the middle of nowhere south dakota and you'd still need super high chunk rents to justify it.

but yea, economics should be the determining factor not regulation.
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With home prices for purchase so insanely high right now and interest rates very low, I would maybe suggest your company sell or turn-condo their multi-family investments? Free rent isn't crushing "people". Investors aren't getting much sympathy these days as property investing typically leads to people being priced out of homes in a regular market.
 
DZH22 said:
Holy crap, just a 2 month approval process for Everett vs like 3 years for Boston? That's insane.
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And THIS is a cost savings in itself that gets passed along to the resident. The years of litigation, property taxes, impact fees, and architectural redesign costs associated with Boston multi-family large projects have a cost, and are part of the reason the market rate units here become expensive. Compound that with affordable housing minimums, DBE participation requirements, union labor contracts, and a long list of other regulations that affect final costs, and the high rental costs in new construction become more apparent.

The cost of land here must’ve been minimal compared to traditionally transit-oriented sites. I actually have a feeling 1 beds here may list for closer to $1,900-$2,400/mo come opening day (maybe north of $3,000 for the high floors). This’ll be fun to revisit in a few years.
 
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Pretty good for Everett

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http://www.volnaycapital.com/sky-everett
 
Ugly facade, but I think this would be really good overall for Everett. Especially the commitment to leave room for the Silver Line ROW and station.

That said, I am incredulous that this won't be downgraded to a 5 story apartment building with a convenience store on the ground floor.
 
As a complete and total non-expert in this field, it is astonishing the absolutism with which the insiders speak. Don't get me wrong, their logic sounds right, but, being an expert in another (unrelated) field myself, I simply would never speak with such absolutism in my own field - it's frankly impossible to eliminate all unknowns. It's clear here that this commentary is personal for some posters. To their very identity, this project can't work.

Granted, you're probably 99% likely to be correct. But how do you know what these developers' personal networks are? Though they have zero experience on paper, how can you be so sure who else is going to get involved who isn't officially involved yet? How do you know this isn't a pet project for someone, and someone's billionaire uncle isn't going to bankroll this? To your other example, how do you know that Jon Cronin cares about leaving this world with a positive net worth? I legit know wealthy people who fully intend on dying penniless while prioritizing pursuit of cool projects and interesting visions. Not everyone does things by the book, and some have the means and connections to make that happen. You can be mostly sure this project won't work, but you can never be fully sure.
 
stoweker said:
... No one is giving them money. (2) even if they did, the cost to build a 22 story building will never be justified by the rental rates said project would achieve in an industrial area of Everett with no location specific factors that make it a desirable place to live.
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The pragmatic optimist in me disagrees with your statement... specifically that there are "no location specific factors that make it a desirable place to live." Things the site has going for it:
  • It's approved. Cheers!
  • It already has a penthouse tenant signed on (Nick & Nico Varano Restaurant Team)
  • The site has a Walk Score of 90 - Walker's Paradise (it's true). It may not look like Newbury Street at the moment, but make no mistake that this address is in fact in an amenity-rich area.
  • The new Chelsea Commuter Rail Station is opening a 10-minute walk away from here--a one stop seat away from North Station. Add to this the SLX Alternatives Analysis happening right now (last week's presentation here), and it's clear that this is a desirable site for TOD.
  • Your nearby grocery store is literally the largest Market Basket in New England. That is a HUGE selling point for prospective tenants and a favorable consideration for lenders.
  • Probably the most important statistic working in favor of getting financing is the large multi-family vacancy rate in the neighborhood--it's low. Pioneer Everett, One North of Boston - Chelsea, Modera Medford, and other large multi-families relatively close by are routinely rented north of 90% occupancy. The absorption rate of Vero Apartments, Elan Everett, and 1690 Revere Beach Parkway (among others) will be the critical determining factor of when Sky Everett gets financed/constructed. Not if.
  • Momentum - the aforementioned new neighbors going up around this site will only make the area more desirable than it is now. Conley Container Terminal hasn't stopped new development from getting funded in South Boston. And the momentum of that neighborhood transformation the last generation continues.
Everett, Chelsea, Medford, Malden, and Somerville/Assembly areas are the next growth frontier for our region. Developments like Sky Everett are the tip of the iceberg of transformations ahead.
 
stoweker said:
Ok, you're right - there could be exogenous factors, who knows...
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thanks, and don't get me wrong, the insights and commentary from inside experience enrich this forum. The only reason I bothered to call you out on the absolutism is that it makes me question someone's motives when they speak in such extremes - like, are you going out of your way to crap on this because it's a rival project and you want dirt to come up on google when someone searches for it. Backing off the absolutism just slightly helps me take your interesting insights more seriously : )
 
dshoost88 said:
The site has a Walk Score of 90 - Walker's Paradise (it's true)
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I’m not saying there aren’t a variety of things within a 15 minute (unpleasant) walk from here, but, man, if this is a 90, Walk Score’s methodology sucks.

I know Walk Score doesn’t take this into account, but to get nearly anywhere from here you need to immediately cross 7 lanes of traffic.
 
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