DEVELOPMENT FEASIBILITY STUDY:
450 WESTERN AVENUE, BRIGHTON , MASSACHUSETTS
by
Mark H. Temkin
Bachelor of Science in Civil Engineering
Tufts University
1981
SUBMITTED TO THE DEPARTMENT OF ARCHITECTURE
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF THE DEGREE
MASTER OF SCIENCE IN REAL ESTATE DEVELOPMENT AT THE
MASSACHUSETTS INSTITUTE OF TECHNOLOGY
SEPTEMBER, 1986
Mark H. Temkin 1986
The author hereby grants to
M.I.T.
permission to reproduce and to distribute publicly copies
of this thesis document in whole or in part.
Signature of the author
Mark H. Temkin
Department of Architecture
August 15, 1986
Certified by
Depa
ent o
Gary Hack
Head of the Department
Urban Studies and Planning
Thesis Supefxvisor
Accepted by
James
Interdepartmental Degree Progr
S 0 . 98
1
McKellar
Chairman
n Real Estate Development
I would
like to acknowledge
Gary Hack
for his guidance
in producing this thesis.
His insightful analysis and
constructive reviews resulted in a clearer understanding of
the varied issues concerning the development of this site.
In addition, I would also like to thank Don Klabin of
the Klabin Organization for all of the time, energy and
enthusiasm that
he so willingly shared throughout the
production of this thesis.
2
DEVELOPMENT FEASIBILITY STUDY FOR 450 WESTERN AVENUE,
BRIGHTON, MASSACHUSETTS
by
Mark
H.
Temkin
Submitted to the
1986 in partial
degree of Master
the Massachusetts
Department of Architecture on August 15,
fulfillment of the requirements for the
of Science in Real Estate Development at
Institute of Technology.
ABSTRACT
This thesis is a site specific development feasibility
study for a 0.85 acre urban site located at 450 Western
Avenue,
in
Brighton, Massachusetts.
The owner of the site
currently operates a wholesale electrical supply company at
this location, and he has requested that the feasibility of
developing
a
35,000
square
foot
mixed-use
facility be
investigated.
The initial development plan consists of
warehouse
and
office
space
for
the
electrical
supply
company,
as well as a 10,000 square foot soundstage for
television and film production.
In addition to this mixeduse
structure,
two
other
development
alternatives
are
analyzed.
A light industrial building and a first class
office
building
are
also
considered
for
development
potential.
The
soundstage
facility
would
be
developed
specifically to suit the highly specialized needs of-one of
Boston's largest soundstage operators.
The development of
such a highly specialized structure induces a large amount
of development
tenants
would
facility.
investigated
small,
risk
be
into the project,
as few alternative
interested
in
renting
such
a
large
The
Boston
film
to
understand
the
production
nature
and
industry
health
of
is
this
specialized market. With a thorough understanding of
the
dynamics
of
this
industry,
the
development
risks
associated with the mixed-use alternative can be better
understood.
The site at 450 Western Avenue is located within the
Allston/Brighton Interim Planning Overlay District (IPOD),
which further complicates the development of this parcel.
Any future development which takes place at 450 Western
Avenue
will
have
to
be
compatible
with
the
goals
established for the IPOD.
After considering the development risk associated with
each
of
the
the
proposed development
options,
as
well
as
the character of the surrounding area, the light industrial
appears to be the most appropriate use
Thesis Supervisor: Gary Hack
Title:
Head of the Department,
3
for this site.
Department
of
Urban Studies
and
Planning
TABLE OF CONTENTS
PAGE NUMBER
1
TITLE PAGE
ACKNOWLEDGEMENT
2
ABSTRACT
3
TABLE OF CONTENTS
4
INTRODUCTION
6
CHAPTER 1:
SITE CHARACTERISTICS
11
Site Description
Boston Zoning Procedures
Interim Planning Overlay District
CHAPTER 2:
MASSACHUSETTS FILM INDUSTRY
25
Film Production Activity in Massachusetts
Massachusetts Film Bureau
Filmarts
CHAPTER 3:
MARKET CONSIDERATIONS
38
CHAPTER 4:
DEVELOPMENT PROPOSALS
48
Mixed-Use Facility
Light Manufacturing Use
First Class Office Building
CHAPTER 5:
BROAD CONSIDERATIONS
58
Effect of IPOD
Considerations for the Wahn Company
NOTES
64
SELECTED BIBLIOGRAPHY
65
FIGURE 1
Project Locus
66
FIGURE 2
Site Plan
67
FIGURE 3
Massachusetts Film Production
Revenue 1983-1894
68
FIGURE 4
Graph of
Massachusetts Film
Production Revenue 1980-1984
69
4
PAGE NUMBER
FIGURE 5
Major Film Productions in
Massachusetts 1977-1985
70
FIGURE 6
Soundstage Comparables
71
FIGURE 7
Allston/Brighton Office
Comparables
72
FIGURE 8
Mixed-Use Financial Analysis
73
FIGURE 9
Manufacturing Financial Analysis
76
FIGURE 10
Office Building Financial
Analysis
79
FIGURE 11
Summary of Development Alternatives
82
5
INTRODUCTION
The
options
purpose
for
an
of
this
paper
industrial
is
to
explore
zoned 0.85 acre
development
site
located at
450 Western Avenue, in Brighton, Massachusetts.
The site is currently owned and occupied by the George
H.
Wahn
Company,
and
is
the
electrical supply buisness.
home
of
their
wholesale
Directly across Western Avenue
is a 10,000 square foot sound stage used in the production
of
a
national,
soundstage
is
prime
operated
time
by
a
television
company
called
series.
The
Filmarts,
and
they have expressed interest in expanding their facilities.
The Wahn Company is considering developing a new mixeduse
structure
needs,
and
on
their
the needs
site to accommodate
of Filmarts.
both their
An initial
own
architectural
schematic design has been produced, soil borings have been
taken,
been
and
an
obtained
preliminary
from
an
construction
experienced
cost
general
estimate
has
contractor
for
this proposed mixed-use facility.
In
addition
development
alternative
to
the
alternatives
is
a
light
sound
are
stage
investigated.
manufacturing
second is a class A office building.
6
proposal,
two
other
The
structure,
and
first
the
For
each of the proposed options, the development and
investment
criteria
of
George
primary development and
Wahn must
be
considered.
investment criteria
The
for this study
are discussed below:
1.
Increase the value of the site.
The
Wahn
for
the
family
past
has
twenty
owned
the
land at
two
years,
and
450 Western
George
Wahn
Avenue
believes
that a new use would increase the value of site.
2.
Provide
space
for
George
H.
Wahn
Company's
operation.
Wahn's primary criterion is that the George H. Wahn Company
remain
in
the
superior
development
accommodate
Company,
electrical
the
then
supply
option
physical
George
is
However,
discovered
space
Wahn
business.
which
requirements
would
consider
if
of
a
cannot
the
Wahn
relocating
his
electric supply company to an alternate site.
3. Mitigate Project Risk.
George
Wahn
structure,
does
and
substantial
not
will
portion
want
proceed
of the
to
with
project
develop
a
development
is
speculative
only
pre-leased.
if
a
George
Wahn sees himself primarily as a businessman, and does not
feel comfortable as a speculative
real estate developer.
4. Obtain a satisfactory return on investment.
The
selected
eleven
Real
development
percent
Estate
New England
first
Advisors,
Life
year
proposal
total
the
real
should
return
estate
on
have
a
capital.
development
minimum
Copley
arm
of
Insurance Company, often uses this measure
7
to
determine
the
financial
development project.
Bill
rate
feasibility
of
a
proposed
For comparison, the one year Treasury
of return
is
approximately six percent annually,
as of July, 1986.
The
450
Western
Avenue
site
is
located
within
Allston-Brighton
Interim Planning Overlay District
An
the Boston zoning
amendment
drafted
to
by
the
Boston
future
development
development
which
is
is
Redevelopment
citizens advisory committee,
for
code
the
(IPOD).
currently
Authority
being
and
a
to define goals and objectives
in
this
considered
area.
for
this
Any
site
future
must
be
compatible with the objectives established for the IPOD.
The development of a highly specific facility such as
a
soundstage
makes
this
project
unusual,
and
creates
additional risks not often considered in the development of
more traditional commercial
structures.
In the Boston area
there are many users of general office space which might be
prospective
tenants
manufacturing
users
in
a
might
manufacturing structure.
tenants
new
office
be
project,
accommodated
and
in
various
a
light
However, there are relatively few
which would be interested
10,000 square foot soundstage.
in
a
"state of the art",
If for any reason Wahn and
Filmarts fail to reach an agreement concerning lease terms,
or
if Filmarts' business fails after occupying the space, a
replacement tenant will be difficult to find.
8
On
the
structure
other
results
hand,
the
development
in a building which
is
of
a
mixed-use
100 percent pre-
leased prior to construction, as the George H. Wahn Company
and
Filmarts
all
of
the
would
lease
leasing
risk
the
is
entire
removed
facility.
from
the
Virtually
project,
and
attractive financing terms could therefore be arranged.
addition,
the
soundstage
facility
could
be
In
designed
to
allow easy conversion to a manufacturing use if required at
some
later
The
date.
high, columnless
manufacturing
heavy
spaces
space
of
if
floor
capacities
and
large,
the soundstage would make ideal
the
soundstage
operation
was
discontinued.
After considering the
Wahn, the
area,
investment objectives
of George
present market conditions in the Allston-Brighton
and
the
risks
associated
alternative,
it
appears
structure
is
the
best development
The
appropriate
most
industrial
type
of
as
use
use
for
which
if
with
the
light
choice
this
site
would
each
be
for
development
manufacturing
this parcel.
seems
to
be
an
designed
to
be
compatible with the adjacent residential neighborhood. Such
a facility will satisfy the space requirements
Company,
producing
year
and
also
tenants.
return
on
provide
space
From an
investment
capital
exceeding
expected.
9
for
of the Wahn
additional
income-
standpoint,
a
eleven
percent
first
can
be
The
first
chapter
characteristics
Boston.
of
industry
Filmarts
considerations
discussed
analysis
this
zoning
The second chapter
production
role
and
of
in
in
each
Chapter
for the
three
considers
procedures
in
the
the
that
of
Three.
and
industry.
the
three
Chapter
proposals
Four
under
considers
Various
an
of
film
the
market
alternatives
is
site
City
assesses the health of the
Massachusetts,
within
for
paper
are
economic
consideration.
The
final chapter addresses several broad issues raised by this
proposed development.
10
CHAPTER ONE:
This
chapter
characteristics
abutters,
and
describes
of the site
Interim
the
general
physical
including existing use, access,
geotechnical
concerning the current
Brighton
SITE CHARACTERISTICS
considerations.
A
discussion
zoning requirements and the Allston-
Planning
Overlay
District
is
also
included.
Site Description
450
located
Figure
in the
1.
Avenue,
by
Western
The
is
a
0.85
acre
industrial
site
Brighton neighborhood of Boston as shown in
site
is
bounded
on
the
north
by
Western
on the south by Abby Road and on the east and west
adjacent
site
Avenue
structures.
consists
of
the
Approximately
existing
60
George
percent
H.
Wahn
of
the
Company
warehouse, which is a one story masonry structure measuring
110
feet
composed
by
150
of
surface
feet.
The
remainder
parking
of
facilities
the
for
site
the
is
Wahn
Company.
There
topography.
is
no
Grade
vegetation
elevations
on
the
range
site,
and
from
+23
very
little
feet
Boston
City Base at Western Avenue to +27 at Abby Road.
This area of Western Avenue can best be described as a
confusing hodgepodge of
used car dealers,
existing uses.
Auto repair shops,
storage facilities, single
11
family homes,
and
convenience
Avenue.
Caldor
A
stores
large
line
strip
this
shopping
portion
center
department store and a Star
of
Western
consisting
of
a
Market grocery store
is
located approximately one half mile east of the Wahn site.
The
noise,
general
feeling one
congestion
gets
and neglect.
in this
area
is
one
of
It will be difficult for a
single, small development project to reduce this hodgepodge
feeling
when
parking
lots,
the
and
cannot change
but
site
is
auto
surrounded
body
the character
materials,
uses,
in this area.
buffer
and
elements
which
can
be
This
taverns,
small
project
improved standard for future
The use of high quality building
zones between
landscaping
small
of the neighborhood by itself,
it may be able to set an
development
shops.
by
along
residential
Western
incorporated
and
Avenue
into
industrial
are
this
several
project
to
make this area of Allston-Brighton more appealing.
Access
Western
direct
the
access
Avenue
to
Massachusetts
only five
minutes
district
is
a
is
an
arterial
Soldiers
Field
Turnpike.
Road,
site,
minute
which
Memorial
Cambridge's
from the
fifteen
street
while
provides
Drive
and
Harvard
Square
Boston's
financial
drive.
The
Mass
is
Pike
provides easy access to routes 128 and 495, which are major
interstate
highways
which
circumscribe
area.
12
the
greater
Boston
Two
routes
Massachusetts
travel
front
of
down
the
Bay
Western
site.
transportation to
Transit
Authority
Avenue
These
Cambridge,
and
stop
buses
(MBTA)
bus
directly
provide
in
public
Brighton and Watertown.
The
bus can be used to connect to the MBTA rapid transit subway
system
in
Harvard
Square,
which provides access
to
points
throughout metropolitan Boston.
One
of this site's advantages
is
the fact that
it
is
strategically located and provides convenient car access to
the various business centers and
around
Boston.
benefit
Users
of
the
from the ability to
interstate highways in and
future
facility
utilize public
will
also
transportation
to get to and from their workplace.
Existing Use
The
H.Wahn
site
Company,
companies
has
is
currently
one
the
in the Boston area.
been
providing
contractors
in
electrical
products.
utilized
oldest
George
electrical
supply
Since 1915, the Wahn Company
industry,
Mr.
family
been located at
by
the
municipalities,
the New England area with a
generation of his
has
of
being
George
H.
Wahn
and
full range
is
the
third
to run the company, and the
450 Western Avenue
for
the past
of
firm
twenty
two years.
The
existing
square feet.
space,
and
building
totals
approximately
15,000
Three thousand square feet is used for office
the
remainder
is
13
storage
and
warehouse
space.
The paved area of the site
by
the
Wahn
employees
work
or
Company,
in
the
take
is
as
larger than what
there
firm, and most
public
are
is required
currently
employees
transportation.
ninteen
either
Only one
walk
to
truck dock
is required by the Wahn Company at present.
Currently the
are
satisfied
with
moved
manually
basic
metal
adequate,
a
new
this
through
shelving.
and no future
industrial
receiving,
in
building option
simple
warehouse,
The
office
is
and
office
selected,
are
stored
areas
are
on
are
is anticipated. If
the
shipping,
requirements
structure.
it
Materials
storage
constucted,
inexpensive
is
the Wahn Company
and
expansion space
and
an
of
structure.
the
building
storage
accommodated
find
space requirements
should be
If
can
the
be
office
fairly easy to
inexpensive off-site warehouse space to meet the needs
of the Wahn Company.
Utilities
site
The
storm
sewer,
can
all
be
is
well
drain,
easily
serviced
gas
and
located
in
with all
electric
Western
utilities.
service
Avenue,
Water,
connections
as
shown
in
Figure 2.
Abutters
A closer look at the abutters of the Wahn site reveals
the
diversity
Brighton area.
which
is
found
The north of the
14
throughout
site
is
the
Allston-
bounded by Western
a
Avenue,
arterial
heavily
road.
fifty
foot
park
both
sides
Cars
which often results
much congestion.
large
warehouse
another
warehouse
Company.
the
Across Western Avenue
and
abutting
of
lane
avenue,
in a restriction of vehicular flow and
causes
directly
on
two
wide,
traveled
office
the
facilities.
existing
owned
are several
To
the
east,
Wahn
Company
structure
the
Shuman
Construction
by
is
One of the tenants of the Shuman structure is the
collision
damaged cars.
To the south of the site lies a residential
units.
consisting
Abby
Road,
Shop,
repairs
Auto
neighborhood
Body
which
Massachusetts
of
two
is
which
directly behind the Wahn site.
the
"Stadium
shares
a
a
Pub",
common
ten
small
and
a
family
cul-de-sac,
rental
terminates
To the west of the site is
2,000
foot wide
three
square
"right
foot
of way"
tavern
which
with the Wahn
Company.
There
has
been
little
development
portion of Western Avenue recently.
been
renovated
along
structures do not
as these buildings
large
asphalt
Soldiers
activity
in
this
Several buildings have
Field
Road,
but
these
improve the character of Western Avenue,
address Soldiers Field Road, and create
parking
lots
frontage.
15
along
the
Western
Avenue
A new building was recently constructed at 460 Western
Avenue, across the street from the Wahn site, however
a
showroom
which
and
service
facility
the
strengthens
further
for
used
foreign
automobile-repair
it is
cars,
context
prevalent in this portion of Western Avenue.
Geotechnical Considerations
Haley
of
firm
The
has
Massachusetts,
investigation
geotechnical
The
borings
test
five
of
consisted
and
soil
subsurface
of the site, and submitted a report
1986.
15,
April
geotechnical
thorough
the
determine
groundwater conditions
on
a
Cambridge,
of
Inc.
Aldrich,
conducted
to
investigation
&
one
and
machine
excavated
test pit.
The
soil
profile
is
composed
of
approximately
three
feet of fill, overlaying a seven to twelve foot thick layer
of
sand.
dense
stratum
of
occasional
less
stiff
Below
Boston
seams
with
of
this
layer
Blue
Clay,
silt
or
depth.
One
a
of
sand.
boring
clay
marine
stiff
fine
sand
natural
went
The
to
is
a
with
clay becomes
a
depth
of
seventy feet, and this clay layer was still not penetrated.
Observed groundwater levels were noted to be some ten
feet below the surface of the ground. This relatively high
groundwater
level must be taken
into consideration in both
the design and construction of the proposed project.
16
designed,
carefully
support
monitored
a
earth
lateral
system and dewatering system is recommended by the
addition
in
will
groundwater
of
control
Good
suggested.
is
points
well
or
pumps
sump
to
lagging
pile/wood
soldier
A
consultant.
geotechnical
system
and
installed
table,
water
the
below
required
is
excavation
If
necessary
be
to reduce the risk of settlement of adjacent structures.
supported
can be
Care must be taken to
bearing on the natural sand or clay.
subgrade
the
that
assure
footings or mats,
concrete
by reinforced
and
undisturbed
is
structure
future
that the
& Aldrich recommends
Haley
has adequate
strength and bearing capacity.
Boston Zoning Review Procedures
All new construction, including extensions and changes
to
regulations
into
the
of
various
zoning
is
divided
the
and
business,
M-1
the
between
and
(restricted manufacturing)
district
R-.8
district
cuts directly through the Wahn
family residential)
(multi-
residential,
boundary
The
districts.
industrial
of
categories
the
city
The
Boston.
City of
to
subject
are
structures
existing
parcel.
Zoning review is initiated by a request for a building
applicant
permit.
The
building
permit
(ISD)
of
application
the
for
to
City
the
of
must
an
submit
Services
Inspectional
Boston.
compliance
with
17
ISD
the
application
then
zoning
for
a
Department
inspects
code.
If
the
the
application complies, then a permit is issued.
If however,
ISD determines that the plans do not comply with the code,
is
letter
then a refusal
A prefiling
review is anywhere from two days to two weeks.
is
ISD
of the Plans Examination section of
a member
meeting with
this
expediting
of
a method
as
recommended
for this
frame
The time
issued.
zoning
review phase.
If
determines
ISD
plans
the
that
do
not
meet
the
Building and Zoning Code, the developer has the alternative
of
seeking a variance.
a variance, an
to secure
In order
applicant must demonstrate that special circumstances exist
the
make
which
different
property
and that these differences,
district,
in
others
from
such as lot size,
the
lot
or topography create an unnecessary hardship for the
shape
owner of the property.
According
very
planner,
Relief
few
of
"as
completely
right"
have
been
in
parking
the
Allston-Brighton
requirements,
successfully
been
have
projects
development
(BRA)
Authority
Redevelopment
Boston
on-site
from
limitations
a
to
achieved
and
done
area.
height
by developers
in the past, and similar variances may be necessary to make
this project financially feasible.
The request for a variance will add a minimum of four
months
to
the development
the developer
staff
and
schedule,
and
will require that
be willing to work with both the BRA design
various
neighborhood
groups.
The
Allston-
Brighton community groups are well known for being visible
18
and
vocal
concerning
and
community,
will
any
type
certainly
of
development
an active
take
in
role
their
in
any
variance proceedings.
Current Zoning Regulations
Eighty
percent
currently
zoned
allowable
Floor
twenty
multi
of
M-1,
0.8.
of
the
450
Western
Restricted
Area
percent
family
of
Ratio
the
site
site
Manufacturing,
(FAR)
is
Avenue
of
The
1.0.
zoned
R-.8,
residences and apartments
with
is
an
remaining
which
allows
with a maximum FAR
Due to the residential neighborhood bordering the
south of the site, a thirty foot buffer zone is required in
the M-1
zone.
A major zoning consideration
Planning Overlay
District
(IPOD) which
is
is the
Interim
presently being
drafted for the entire Allston-Brighton area. A description
of the IPOD
and its possible effects are discussed below.
Interim Planning and Overlay District (IPOD)
The
by
current
Chapter
there
665
Boston
of
the
Zoning
Code
Enabling
and
Acts
of
were adopted
1956.
Although
have been several amendments made, these changes did
not reflect any kind of comprehensive,
In
Maps
November,
creation
community
of
1984,
the
IPOD
concerns
the
Zoning
mechanism
regarding
inappropriate zoning.
19
city-wide analysis.
Commission
as
a
direct
outdated
approved
response
and
the
to
perhaps
The
Authority
Boston Redevelopment
governmental
office
which
is
(BRA),
with
charged
the
quasi-
planning
and
redevelopment of Boston, recognizes that the zoning code is
outdated,
code
and
is
perhaps
necessary.
an
overhaul
The
BRA
neighborhood
character
of
appropriate
way
rezone
to
of
also
Boston,
the
current
recognizes
and
will
feels
be
zoning
the
unique
that the
most
neighborhood
by
neighborhood.
The
Allston-Brighton
IPOD
is
a
method
for
the
community to become actively involved with the planning and
zoning of
their neighborhood, and to draft a set of goals
and objectives for future development in the area. The IPOD
is not created as a way to stop development.
The
The
Dorchester.
as
it
IPOD
first
covers
Planning and
a
was
for
the
Allston-Brighton
larger
area,
and
Port-Norfolk
IPOD
is
will
include
Zoning Advisory Committee
twenty one community members.
Flynn and
more
of
ambitious,
the
first
(PZAC) comprised of
The Allston-Brighton IPOD is
seen by the BRA as a prototype
follow, and Mayor
section
for other
neighborhoods
to
his administration have given
their full suport to assure that this IPOD is a success.
Development projects that are
year
IPOD
Applicants
change
in
period
for
must
adhere
to
a building permit,
occupancy permit
proposed during
the
following
change
(which are
the two
process:
in use permit
not exempt under
or
the
IPOD regulations) will have to receive an "Interim Planning
Permit"
from
the
Board
of
20
Appeal
before
the
Inspection
developer must go to the Board of Appeal for the
be
a
public
is
development
project
ninety days
up to
of
end
to
hearing
If
is
the
with
Board of Appeals
in
fact
objectives, a permit will
the
proposed
of
objectives
the
consistent
the
finds
that the
with
the
If the
be issued.
and
there
period,
if
determine
requested
community
of
ninety day
the
consistent
overlay district.
proposed
be
the
At
BRA review.
will
will
there
permit,
If a
permit.
requested
issue the
can
Department
Services
IPOD
Board decides
that the project does not address the needs and concerns of
the community, then the request is denied.
Allston-Brighton Profile
The
Allston-Brighton
and
Boston,
downtown
west
of
and
identifiable
is
neighborhood
is
neighborhoods,
one
along
with
by the
bounded
Newton
to
the
that
manner
Charlestown,
Allston-Brighton
Charles River on the north, the town of
west,
Brookline
south.
the
to
distinct
Boston's
of
Dorchester, Chinatown, and the South End.
is
located
and
the
disrupts
Commonwealth
town
of
boundary
Boston's
Avenue
is
to
Brookline
the
the
such
in
only direct
a
link
that Allston-Brighton has with the rest of the city.
1980,
In
neighborhood
65,000
the
in
the
the
was
Boston,
with a population
or
persons/acre.
residents,
population
while
Allston-Brighton
of
22.5
Allston-Brighton
percentage
change
21
for
the
most
populous
of approximately
From 1970
increased
entire
3.6
city
to 1980
percent,
of
Boston
only
was
four
of
an
increase
the
Allston-Brighton
Therefore,
area
was
percent.
one
of
tenths
at
growing
a
rate
nine times that of the city as a whole.
Allston-Brighton grew in the early 1900's as a street
car
of
line"
"green
the
Authority
Transit
Bay
and
Brighton,
in
Avenue
Commonwealth
The
automobile.
private
Massachusetts
the
down
runs
still
of
independent
suburb
abandoned trolley tracks can still be observed on Brighton
and
Avenue
Street.
Washington
and
homes
availability,
retail
to
Due
this
streetcar
built
were
establishments
close together, and few provisions were made for off-street
cars
parked
on major
added
traffic,
vehicular
Increased
parking.
roads
connector
has
led
double
to
serious
to
traffic congestion. Traffic and parking are now two of the
of
developer
the
and
community,
impact
which
problems
primary
the
Allston-Brighton
this
parcel
must
be
prepared to address these issues of community concern.
Neighborhood History
the
As
Back
Bay and
Square
Kenmore
of
areas
Boston
began to be filled in the late 1800's, the street car lines
were
being
The
area.
extended
result
was
that
were
built
in
developments
portions of Brighton.
near
the
packing
towards
west,
Wahn
site,
operations
high
the
the
Allston-Brighton
residential
quality,
southern
and
western
However closer to the Charles River,
stockyards,
were
built.
22
slaughterhouses
As
the
nation
and
meat
grew
and
were introduced,
rail cars
expanded west, and refrigerated
the Brighton stockyards declined in importance.
the
In
of
parts
example
prime
The
together.
some
overall
an
commercial
and
of
this
effect
of
result
such as
uses,
of
lack
this
can be
a
as
planning,
body shops
auto
is
Avenue
Western
Allston-Brighton.
the
of
noxious
various
in
and
of zoning and planning can still be observed
original lack
many
residential,
mixed
being
uses
industrial
in
in
resulted
and
plan,
were
lacked
Development
homes.
residential
cases
stockyards
warehouses,
plants,
industrial
with
replaced
failing
the
1900's,
early
found
adjacent to single family residences.
In
1986
further
restrict
the
flow of
shops
are
the
body
auto
both
on
parking
cars
and
of
sides
use,
predominate
chain
disrepair
do
comfortable
structures
the
further
not
adds
and
an
for
make
cars
environment.
Many
Western
Avenue
along
exterior
fences,
link
of their
to
the
buildings
feeling
of
in
have
although
some
The large asphalt
states
of
pleasing
or
various
the
owners
done
little
Green
the
of
to
visually appealing,
neglect.
and
lots
car
esthetically
of
Avenue
Western
Used
traffic.
retail and residential uses are present.
lots,
of
one
is
Vehicular traffic is almost always
congestion and neglect.
heavy,
Avenue
Western
of
character
the
make
which
spaces
trees are virtually non-existent in this urban location.
23
and
factors, many residents of this
Despite these negative
area
development
potential
Western
for
there
that
feel
Allston-Brighton
of
Avenue.
As
is
rent
future
rates
for commercial space continues to climb in downtown Boston,
some
firms
alternative
location.
good access
to
public
Brighton
look
to
to
Boston
Proximity
Brighton
the Massachusetts Turnpike,
transportation,
an
to
beginning
are
attractive
and
low
location
industrial users.
24
and
as
an
Cambridge,
access to MBTA
rent
levels
may
for
office
or
make
light
THE MASSACHUSETTS FILM INDUSTRY
CHAPTER TWO:
Based on preliminary discussions between the George H.
film production
Boston based
Wahn Company and Filmarts, a
company, Wahn is considering the development of a new mixeduse
structure
at
include
an
would
450
highly
the
meet
to
soundstage
elaborate
structure
new
The
Avenue.
Western
specific needs of Filmarts, as well as warehouse and office
space for the Wahn Company.
film
The
type
the
production work
series
needed
activity
of
attracting
like
a
a
to
art"
large
accommodate
Filmarts
"state of
and
York
New
scale,
major
in Boston are
considered
which would be
facility
Film
to Boston which
support
to
a
length
feature
and cater primarily to industrial clients.
small,
the
in
Massachusetts
The
Most of the present soundstages
soundstage.
would
industry.
is
Massachusetts
in
industry
successful
television
film and
is
been
has
Bureau
growing
and
healthy
production
Los
Angeles style users.
the
For
such
a
Wahn
Company to
highly specific
use
consider
structure,
development
the
it
is
of
important to
understand the nature and structure of the film industry in
Boston.
All development projects have
construction,
is
built
and
to suit
leasing
risks.
Filmarts,
the
must also be considered.
25
inherent
financing,
a
soundstage
However,
risk
of
if
the
film
industry
of
composed
and
films,
feature
commercials,
films,
industrial
segments:
distinct
several
is
Massachusetts
in
industry
production
film
The
The
rentals.
equipment
relative growth and health of this industry is discussed in
A
chapter.
this
and
competition,
on
reliance
their
the
their
Filmarts,
concerning
discussion
of
production
a
weekly prime time television program, is also included.
Film and Video Production in Massachusetts
firms
Massachusetts
the
film
and
educational
the
industry.
and
greater
in
industry
visible
and
highly
only
are
the
actually
are
one
Commercial,
state.
the
productions
aspect
of
industrial,
backbone
of
Increased demand, new filmmaking techniques
filmmaking creativity have all helped to fuel
Below is
Boston film industry.
of the
growth
film
films
length
feature
prestigious,
in a wide variety of
Although
activities.
production
the
engage
a short
description of each of the major film production segments.
Industrial and Educational
This
makers
public
sector
in
of
source
largest
films,
training
communications
film
for
large
Approximately one half of the $43 million worth
falls
video
of
income
of
includes
and
relation work and internal
production
state
the
Massachusetts,
companies.
of
is
work
generated
into this
equipment
sector.
is
by the
The
rapidly
26
film industry
in the
ease and accessibility
replacing
film
in
this
segment of the market. Industrial and educational films are
require
location
shooting,
the
production
do
often
they
staff
is
not
small,
inexpensive as compared to commercial
is
and the equipment
as
produce
to
inexpensive
relatively
production.
Commercials
Commercials
and
national
not
grew to $8.0
and
1983,
in
figure does
This
television
local
by
produced
million
$5.5
in 1984.
million
commercials
include
about
generated
consumption
both local
for
houses
production
by local
stations for their own use.
is
There
a
in
community
commercials
for
in
Boston
New
and
reflection
film market
1984.
really
of
is
one
York,
the
the
turn
do
for
to
York
New
more
of
national
growth
of
this
Jeneski's
many
per
much
out work
fact that
Advertisements
Boston
are
make
the amount of money you have to
can
intense
a
clients
that
to
York.
New
to
Productions",
going
to
alternatives
shoot
to
easier
travel
notes
house,
commercials, and that "for
spend
than
"Duck
Boston's
production
commercials
looking
of
it
finds
now
rather
Boston
in
Jeneski
Loretta
which
Boston,
advertising
successful
and
very talented
in
dollar
caliber."1
segment
of
the
firm grew 100%
national,
European
Japanese accounts have recently been filmed in the state.
Feature Films
27
A
in
and
budget,
Large
companies
from Hollywood
people
segment.
technical
of
outside
are
usually
type
this
movies,
Approximately
local
as
well
expertise
and
services
their
as
production
length
market
this
from
benefit
facilities
and
as
companies,
production
Local
full
pilots.
in
1984
in
spent
was
million
$6.1
for
television
and
series
television
to work
production
outside
by
primarily
done
is
Massachusetts
film production in the state of
feature
utilized by the Hollywood productions.
There
small
are also many
production companies
local
in the Boston area. These Boston film producers are able to
the
yet
inexpensive,
produce
to
area
the
in
neighborhoods
of
flavor
and
diversity
the
of
advantage
take
films.
powerful
Equipment Sales and Rentals
activity
of
feature
more
smallest
required,
film production
the
length
equipment
films
rental
and
and
on
$2 million
for about
and accounted
state,
production
the
of
segment
is directly tied to
The activity in this segment
in 1984.
As
the
in
industry
the
the
is
This
industry
in general.
location shooting
support services
will
is
also
grow.
A
large
portion
of
film
lucrative
niche
rental
Massachusetts
of
production
for
the
Filmarts
revenue
is
due
and
this
is
equipment,
firm.
and New England
28
As
film
continues
production
to
to
the
a
very
within
grow, Filmarts
the
from
benefit
will
rental
for
demand
increased
equipment.
As
in
shown
production
is
production
commercial
but
Masssachusetts,
in
revenue
all
of
half
educational
and
industrial
nearly
for
accounts
production
3,
Figure
growing faster than any other segment.
film and television production revenue dropped
Feature
in
slightly
large
this
but
1984,
number
of
location
be
noted
that
should
television
production
past
years.
five
in
correction
in
occur
future
the
spikes,
segement
and
1984,
have
from
similar
film
feature
film
and
steadily
over
the
by
followed
be assumed
a
to
inherent
these
television
and
a healthy overall
shown
feature
despite
However,
years.
1983.
can
spikes
It
in
was
1983
in
exceptionally
shot
growing
been
spurt
the
to
productions
revenue
has
The
due
is
production
growth rate
of
14%
per year over the past five years.
4
Figure
Massachusetts
The
1984.
production
shows
overall
the
industry
film
and
health
the
vitality
exhibited
is
industry
for
pattern
growth
of
by
years
the
the
1980
for
the
through
Massachusetts
average
annual
growth rate of 22 percent during that time. 2
Massachusetts Film Bureau
Los
top two
Angeles
and
New York
film production areas
production
costs
in
those
29
have
traditionally
of the country.
two
centers
been the
However, as
continue
to
many television and film production companies are
escalate,
those
leaving
has
Massachusetts
to
cities
do
of
advantage
taken
in
work
their
areas.
other
by
situation
this
Film
creating a government agency called the Massachusetts
Bureau
to
state.
According
spending
attract
and
has
Massachusetts
in
bureau,
film
the
to
in
film production
encourage
increased
production
film
25
the
percent
each
year since 1980, and reached $43 million in 1984.
The
provide
Massachusetts
assistance
every phase of
and
film,
Production
post
production
(MFB)
is
and cable
video
film production.
"Massachusetts
production
to
Film Bureau
committed to
In its glossy
Manual"
services
in
companies
150
page
pre-production,
are
individual and company profiles are included.
listed,
and
In order to
assist and expedite film production in the state, the film
bureau also provides the following services free of charge
to producers:
o
Assist in location selection
o
Permit acquisition
o
Liason between state agencies and production
companies
o
Assist in negotiations with local union officials
o
Arrange for police to provide traffic control
o
Arrange accommodations for scouting crew and
production personnel
o
Provide a MFB representative to work with
production company during location filming.
30
order
to convince
would
enrich
their
Michael
Governor
Angeles
to
dinner
at
continues
to
keep
governor
has
recruited
production
A
state.
the
comfortable
Hollywood.
the
limelight,
a
cameo
appearance
Elsewhere",
in
produced
in
Los
was
that
Dukakis
popular
Boston.
in
time
prime
the
Angeles,
the
as
the
set
is
weekly
NBC
an
Elsewhere",
which
gala
Garden
with
in
Los
to
Brothers
Warner
state
series,
style
Bistro
the
"St.
go
to
Hollywood
convince
to
television
Hills
Beverly
MFB
actually
is
series
was
made
show
"St.
Dukakis
the
by
was
Although
Hire"
for
Massachusetts
television
For
posh
the
orchestrated
"Spenser:
S.
pitch
location filming
on
that
Brothers
Warner
In
to the Boston area.
television series
film and
length
feature
the MFB is to attract
primary function of
The
drama
Boston
industry still benefits, as the weekly show acts
in effect, as a free commercial for the state.
"Runaway Production"
term
The
fact
their
that
work
"runaway
many Los
to
production"
used
to
describe
production companies
Angeles
other
is
locations due
to the
the
are taking
spiraling
costs
associated with film projects, and the fact that filmmaking
is
in other locations. The
often easier
industry that
a non-polluting
into
cities,
While
a
local
economy.
now have
New
York,
Texas
can pump millions of dollars
Virtually
film bureaus
and
31
film production is
to
every
and
some
film production.
attract
Colorado
state,
are
the
leaders
in
Hollywood,
from
away
production
film
attracting
the
Massachusetts Film Bureau is also among the most successful
kind.
agencies of its
it
finding
and
in
in
chose
to
shoot
"real people
a
shoot
around
pool
casting
was
Boston
in
that
they
real situations,
approved
by
the
ad
Harmony
allowed
were
and were not
to
limited
according
unions",3
now
Los
Worker"
that
reason
a
segments of
American
The
Boston.
are
shoot.
to
shot several
the
making
companies
Boston
to
to
"Salute
Beer
Budweiser
campaign
to
come
to
economical
based Harmony Productions
Angeles
a
production
and
of
costs
increased
the
for
related
production
Hollywood
the
commercial,
or
film
reason
one
is
unions
of
strength
The
to
Thomas Tyson of Harmony.
One of the many services of the the Massachusetts Film
local
with
union
officials and also
local
the
the
Alviani,
unions.
Secretary
and
Dukakis
in arranging meetings with
to provide assistance
is
Bureau
film
With
assist
the
is
bureau
cooperation from the Boston union
Such
is
still
union cooperation
of
influence
Economic
of
in the negotiations
Affairs
get
to
able
Governor
Joseph
extensive
leaders.
is a recent occurrence.
fighting a reputation
D.
Boston
of having difficult unions
due to an incident involving the Teamsters union during the
filming
million
of
"The
Brink's
production,
Job"
directed
movie
by
in
1978.
Academy
This
Award
$12
winner
William Friedkin and produced by Dino DeLaurentis, resulted
32
in
for
terms
prison
25
in
diversity
of
Local
Teamsters
of
two members
Boston for racketeering charges.
radius
within
a
greens,
town
New England
Boston.
of
engineers
high-tech
and
workers
mill
outside
attract
Harmony Films was able to find authentic
production crews.
fishermen,
a
has
further
which
locations
and
scenery
also
Massachusetts
of
state
The
fifteen
mile
rolling
farmland, vibrant urban activity, and the Atlantic
wide
a
provide
Ocean
four
The
filmmakers.
the
to
contribute
also
seasons
for
backdrops
natural
of
variety
variety of the natural and manmade environment.
5 is a schedule of television or feature
Figure
A major Los Angeles production
shot on location in Boston.
such
company
Warner
Brothers,
Pictures,
with at
involved
Studios was
Paramount
or
Columbia
Artists,
MGM/United
as
films
least one project per year since 1977.
Although only six major projects took place
in
1985,
detective
during
location
in
a
a
around
and
believes
sixteen
Boston.
impact
entirely
schedule,
Massachusetts
The
on the
on
Film
"Spenser" will have
that the production of
tremendously positive
economic health and
of the Boston film production market.
visibility
For
pilot
week
twelve
shot
which
Hire",
time
prime
network
ABC
the
was
"Spenser:For
series
episodes
Bureau
them
of
one
in Boston
during
Brothers
when
example,
a
twenty
employed
345
"Spenser"
two
local
33
day
shot
the
period
people
two
first
in
through
1985,
hour
Warner
eighty
five
was
Brothers
the
of
assistance
able
to
get
cooperation
extensive
Warner
Bureau,
Film
Massachusetts
the
With
period.
week
four
that
in
vendors
separate
local
from
unions, state and local agencies, and private owners.
Filmarts
of
One
Massachusetts
Hire"
Filmarts
soundstage.
Hollywood
scale
the
owner
has
a
"Spenser:For
Filmarts
been
has
the
located at
soundstage
of
work
production
International, Ltd.,
Production
largest
beneficiaries
largest
the
New England's
of
foot
square
10,000
Field
Soldiers
1380
Road, directly across from the Wahn site.
According to
of
Commonwealth
personal
not
sound
stages
clients.
are
There
other
6
stages
in
as
and
facilites are much smaller, and are
primarily
rely
stage
sound
acknowledged
sound
for television productions.
Figure
stage space
major
the
Filmarts was always
Boston, but the
suitable
is
"Which
posed
facility.
major
around
was
Boston?"
in
facility
the
interviews with various Boston production people,
question
the
of
course
the
During
Massachusetts.
the
in
listed
soundstages
eight
are
there
Manual,
the Massachusetts Film Bureau Production
shows
the
on
Most of the
commercial
summary
of
industrial
comparable
in the Boston and New York areas.
34
and
other
sound
1978
In
the
to
equipment
at
facility
About
Field
Soldiers
in
space
rent
now
companies
production
and
lights
1980
into a
ten separate
Filmarts
the
goal
Filmarts'
Road.
grip
In
industry.
film
film production center.
and
soundstage
production
film
manufacturing building
light
a
converted
Filmarts
a
cameras,
England
New
as
founded
rented
primarily
which
company
was
Filmarts
to
is
a total production center for Boston's film industry.
offer
While
the
is
soundstage
facility, Filmarts
the
major
attraction
of
this
to operate an active equipment
continues
rental business from the Soldiers Field Road location.
Warner
client
for
For
June
through
in
a
very
of
terms
important
and
income
sixteen week shooting schedule, Warner
the
have
will
is
"Spenser"
both
Filmarts,
visibility.
Brothers
and
Brothers
the
entire
November.
sound
Instead
of
stage
having
occupied
a
from
series
of
small clients doing three and five day shoots, Filmarts now
has the relative stability of a single long term tenant.
In
brings
addition,
notoriety
"Spenser"
landing
brings
a major
improving
just
to
the
as
the
"Spenser"
and
Commonwealth
same
notoriety
client such as Warner
Warner
Brothers
of
Massachusetts,
to
Filmarts.
Brothers, Filmarts
By
is
its reputation in the national film industry and
proving that Boston has the facilities and technical talent
to produce
top quality
feature
35
films.
and
in
local
then
show,
weekly
the
vitality of the
segments
production
commercial
cancelled
to the
"Spenser". Due
of
success
Boston,
if
ABC-TV
facility.
In
to diversify
buisness helps
addition, the equipment rental
industrial
production
small
would actively book the soundstage
companies
the
upon
dependent
entirely
not
is
Filmarts
of
strength
financial
the
officials,
Filmarts
to
According
the Filmarts operation.
area,
Boston
Greater
the
largest
does
have
be
may
Filmarts
While
it
facility
large
other
two
the
in
competitors, both affiliated with area television stations.
Studio 5 Productions, which is a subsidiary of Channel
5 in Boston, began its
Studio
5 facility is
10,000
square
feet, as
5,600 square
Filmarts.
at
feet
operation in November of
However,
and
expertise
studio
greater
and
to
the
Boston
corporate and
one
of
can
the
take advantage
reputation.
Boston
of
Channel
market
after
Channel
has
the
technical
5's
5 decided to open this
that
determining
industrial production.
advanced
5
local televison
facilities could not support
most
The
opposed to the
Studio
advantage of being affiliated with a major
station,
1985.
the
the demand for
Although Studio 5 is
production
studios
in
the
northeast, their focus to date has been on cable television
productions,
production.
television
The
studio
conferences
and
limits
their
size
commercial
ability
to
compete with Filmarts for a weekly televison series type of
36
be
can
it
although
work,
production
for
competitive
very
corporate and commercial work.
affiliate
Boston
the
WGBH,
two soundstages
independent
film and commercial
major
a
of
expertise
technical
Like
producers.
soundstage
WGBH
the
Broadcasting
Public
the
which they actively market to
System, has
Productions,
of
also
can
television
Studio
5
the
offer
production
company.
film
The
healthy
been
with
growing,
and
rapid
enjoying
production
growth.
in
successful
The
industry
all
of
segments
feature
the
industry
Film Bureau
Massachusetts
attracting
is
Massachusetts
in
length
has
and
films
television series to Boston, which is the type of activity
needed to support a major
of
the
soundstages
current
primarily
Productions,
to
industrial
and
WGBH
are
soundstage facility.
in Boston are
clients,
the
only
small
Filmarts,
local
firms
accommodate large scale, Los Angeles style users.
37
While most
and
cater
Studio
which
5
can
MARKET CONSIDERATIONS
CHAPTER 3:
be
to
designed
is
proposed soundstage
The
finest
the
The design requirements of
facility of its kind in Boston.
the soundstage are very specialized, and result in a costly
be
lease the space, the Wahn Company will
to
left holding an
proposed soundstage is so specialized, and
why the
discuss
not
This chapter will
use.
with a unique
structure,
expensive
decides
Filmarts
reason,
any
for
If,
structure.
offer alternative uses for consideration.
The
initial architectural design includes two isolated
concrete
foundation slabs to prevent transmission of noise
and vibration into the studio, as well as twelve inch thick
interior
masonry
The
control.
to
column
open,
structure must
spans, and the
free
a
supporting
accommodate
these design criteria,
resulting
per
pounds
is
structure
lighting
heavy
of
200
acoustic
stage also requires ninety feet of
The
capability
weighing
interior
interior sound partitions alone are estimated
$400,000.
cost
for
walls
partition
grid.
To
long span steel trusses
are
foot
linear
have the
required.
efficient,
acoustically
The
although
very expensive.
The typical Boston soundstage is much smaller in size,
and
is
usually
a
renovation
manufacturing facility.
usually about
fifteen
an
of
old
warehouse
or
The clear height to the ceiling is
feet,
which
38
is
adequate
for
filming
and
vibrations
from street
do
not
a problem in
simply
extensive
converted warehouse
the
of
structure
the
to
renovations
and
undertake
to
required
capital
the
have
Sound
companies
sound
the
as
for
sometimes
traffic are
facilities,
renovated
these
inadequate
work.
production
film
feature
television
is
but
work,
industrial
and
commercials
space.
The proposed stage will give Filmarts the chance to
design
the
construction costs,
into
The proposed studio may
higher rent levels for the tenant.
be
be translated
in turn must
which
large
to
lead
will
criteria
specialized
these
However,
requirements.
exact
their
fit
to
studio
very expensive from a tenant's perspective, although it
will unquestionably be the finest facility of its kind.
It
area
is
that
estimated
current
at
space
built
at
a
the
net,
for the
Road.
One
of
the
is to determine if the structure can
largest considerations
be
Field
Soldiers
1380
in
foot,
square
per
of eight to ten dollars
now paying
is
Filmarts
be
can
which
cost
into
translated
an
affordable rent for Filmarts.
A second
consideration
this
type
unlikely that
fact
that currently in
is the only user which would
Boston Filmarts
in
the
is
of
large,
is
there
specialized
scale,
10,000
the
healthy
another
full
Boston.
Despite
square
20
It
is
highly
work
to
support
space.
production
enough
foot
percent
be interested
soundstage
in
growth
of
annual
the film production industry in Boston, and the 125 percent
growth
in the past
five years,
39
only a small
percentage
of
The
that work requires the use of such a major soundstage.
if
soundstage would be
Filmarts agreed to
long
percent
pre-
arranged, thus
could be
financing terms
leased, attractive
commit as a
100
virtually
building
the
With
tenant.
the
construction of
Wahn to proceed with the
only way for
reducing Wahn's development risk.
requirements,
physical
stringent
with
Along
Filmarts
will also bring stringent schedule requirements which must
be
to
For
Hire."
to
be
so
the
full
for
time
in
would
Construction
to
have
is
income
"Spenser:
new soundstage would have
the
coordinated
for
schedule
production
Construction of
closely
completed
week
sixteen
the
due
Filmarts'
of
portion
large
A
accommodated.
that
of
season
start
be
facility could
the
in
immediately
the
for
work.
"Spenser"
to
order
shooting
1987
soundstage
operating
schedule.
At present,
only schematic design work has been
completed,
and
no
is
more
the
have
start
1987
permits
have
likely, and
acquired.
been
allow
would
for
A
spring
a summer
1988 opening.
Hire"
is
another
For
Hire"
show
is
a
ratings.
If
success
guaranteed.
now,
favorite
popular
how long the
that
be
success
of
consideration
The
cannot
determine
the
market
major
thought.
considerable
televison
on
reliance
Filmarts'
of
"Spenser:
which warrants
a
Although
there
is
prime-time
"Spenser:
no
cancellation would
is
cancelled
have
on the
40
by ABC-TV,
the
to
way
show will continue to enjoy its
"Spenser"
For
high
impact
financial strength
of
in
financial
the
consider
carefully
must
Wahn
advantageous.
clearly
is
Brothers
Warner
as
such
client
stable
financially
term,
long
a
cancellation,
"Spenser's"
of
event
the
in
soundstage
the
of
utilization
full
result
will
term users
short
that
confident
is
management
Filmarts
While
considered.
carefully
be
must
Filmarts
of
strength
Filmarts, because if Filmarts goes bankrupt, then Wahn will
be
tenant
replacement
a
and
service,
debt
large
facility with
specialized
highly
new,
a
with
left
a
be
will
difficult to find.
Manufacturing Use
Due to Wahn's reliance on a single tenant with limited
building the
be
converted
high
The
of
manufacturing
use.
an
in
limiting his
the
deal,
items
as
would be
may
be
or
the
If
structure
manner
economical
for
industrial
downside risk
ideal
for
prohibitive.
height
be
ideal
for
be
can
effective
footings
years
and
rents
then Wahn will
use,
of
double
a
and
designed
be
out of
if Filmarts either backs
fails after several
independent
large
that the
so
use.
and
will
soundstage
the
competitive
be
will
requirements
loading
floor
it can easily
industrial
or
manufacturing
light
into
to consider
for Wahn
soundstage in such a manner that
requirements
built
wise
may be
it
strength,
financial
occupancy.
Such
foundation
slabs
vibration isolation, although the costs
If
Filmarts
41
could
agree
to
a
less
then
structure,
costly
less
therefore
and
sophisticated
Wahn will be limiting his development risk considerably.
the
film production
feature
televison and
The
be described
on can
relies
area which Filmarts
Boston
in
market
as a market of spikes--short peaks followed by sharp, rapid
Historically, the commercial
declines.
has
and
present
an
alternate
office
class
first
a
soundstage,
a
to
consideration
television
may determine
As
unacceptable.
is
risk
total
the
that
the
of
Wahn
project,
a development
of
risk
spikes
industry are added to the ever
film production
feature
the
when
However
risk.
inherent
Every real estate project has
cyclical trend.
a more
estate market
real
building should also be considered.
Office Market
building
While
with
associated
buildings
there
possibility,
that
developing
there
two
in this area of Boston.
one
office
"Harvardview",
Steet,
Lincoln
1985,
leased.
The second
half mile east of the Wahn parcel.
square
92,000
a
quarter mile south of the Wahn site.
late
risk
Western
class
first
is
One
on
use
of
type
only
are
considerable
is
a
square foot structure located at 230 Western Avenue,
50,000
about
a
present
At
Avenue.
214
is
parcel
Wahn
the
building on
office
class
first
a
and
214
by
mid
Lincoln
is
1986
Street,
about
one-
Harvardview opened in
approximately
completed
approximately 92 percent vacant.
42
building
is
in
75
early
percent
1986
is
good
benefit
of
Harvard
Square
access
of
whose
in this area
neglect
a general
is
and there
users,
for office
few amenities
feeling
There
clearly not a visually attractive area.
location is
are
Avenue
Western
the
Boston,
Downtown
and
to
and proximity
Pike
Mass
the
to
the
enjoy
does
location
Avenue
Western
a
Although
is
predominant use
auto body shops, used car lots and storage facilities.
constructed
estate
real
Harvardview
was
of
the
Caruso
firm
which
claims
that
Harvardview
created
had
previously
existed.
none
of
owners
the
represents
leasing
where
market
Harvardview
Joseph
Avenue.
Western
230
at
perception,
locational
this
Despite
office
an
Although
originally projected at twenty to twenty three dollars per
most
foot,
square
were
leases
the
of
eighteen
at
signed
dollars.
Lincoln Street can be
214
does
but
not
five
square
feet
rented,
of
was
offered
for
which
construction
is
and
sale
has
has
building
office
story
foot,
Pike.
the
to
have direct access
square
building
seen from the Mass Turnpike,
currently
immediately
severely
The
92,000
had
7,000
The
sale.
for
upon completion
hindered
leasing
the
progress of the building.
An office user who is considering the Allston-Brighton
area
is
a
esthetically
little
is
price
insensitive.
personal
enthusiastic
sensitive
client
about
user,
If
an
contact at
reducing
43
his
and
must
office
this
be
user
virtually
has
very
place of business,
overhead
costs,
and
at
the
same time wants a Boston address,
location may be
ideal.
the
of
home
space
office
a
for a courier
firm which
does
a
Such
then a
prospective
Western Avenue
tenants might be
temporary employment
agency,
service, or the office
considerable
amount
office
for any type of
of
telephone
sales
work.
One of the difficulties with the Allston-Brighton area
is that office users considering that location will also be
looking
at
space
two markets
Brighton,
might be
they are
office
markets
benefits.
estate
in Newton and
Although these
slightly more expensive than Allston-
also more
with
established
virtually
the
and
recognizable
same
locational
Dennis Finnigan of Hunneman, Inc.,
brokerage
considering
location,
Cambridge.
a
firm,
has
noted
Allston-Brighton
most tenants
choose
that
when
location
the
a Boston real
a
and
Cambridge
tenant
a
Cambridge
location,
if the rent rate in Cambridge is slightly higher.
current
little,
softening
of
the
Cambridge
market,
is
there
even
With the
is
now
if any difference between the rent rates in Allston-
Brighton as compared to Cambridge.
Concerning
advantage
to
Cambridge.
by
Authority
locating
In
Massachusetts
served
vehicular
the
"Red
the
and Kendall
Line"
system.
there
is
Allston-Brighton
addition,
Avenue
subway
in
access,
of
the
This
44
virtually
as
Cambridge
Square
are
to
a
compared to
markets
of
both directly
Massachusetts
access
no
Bay Transit
rapid
transit
the
by
enjoyed
advantage
tangible
significant
a
is
line
Cambridge office users.
Figure
square
so
is
with over
15,000
office
market
Allston-Brighton
The
space.
of
feet
buildings
large
for
Allston-Brighton area
in
firms
brokerage
few major
limited at present that
the
in
rate
66% vacancy
a
currently
is
there
7,
in
shown
As
bleak.
is
market
Allston-Brighton
current
the
to rise,
the Boston vacancy rate also continues
and
market,
Cambridge
the
in
softening
general
a
is
there
While
town keep statistics on the area.
building
at
site
is
1.0.
FAR
allowable
not
are
parcels
adjacent
If
current
the
that
fact
the
is
this
office
proposed
a
concerning
consideration
Another
acquired, or if a variance is not sought, then the building
be
must
size
to
approximately
could
be
obtained
variance
a
If
limited
floor
area
greater
or
height,
would
which
then
feet.
square
30,000
an
of
economics
the
more
allow
office building may begin to become more attractive.
The
was
items
four
the
of
the
months
most
building
to
and
through
go
important
a
building
which
is
zoning
the
variances
the height restriction of
sixty
for
variances
in obtaining
successful
variance
which was
feet
seven different
and
code,
thirty five
Western Avenue
230
located at
Harvardview project
it
took
procedure.
granted
only
One
was
of
that
feet was waived, and
high was
constructed.
It
should be noted that like the Wahn site, 230 Western Avenue
is adjacent to a residential neighborhood.
45
locate an office
to
project would be
associated with this
risk
financial
his
limit
to
Wahn
for
way
One
There
tenant who would be a joint venture equity partner.
f irms
are many
rather
owners,
the Boston area
in
Since the tenant
both equity and stability to the project.
in
tenant
of
a
the
in
the development
meet
have,
to
Wahn
for
partner
building,
Wahn
risk associated
By
identity.
will
will be
a
become
removing
with an office
a
to
addition
in
who
space
special
the
corporate
a
venture
joint
future
to
might
with
building
distinctive
bringing
they
that
requirements
financing
joint venture partner benefits
the
designed
facility
a
having
partners
venture
joint
likely
In addition,
consider.
by
be
might
a
Computer related or financial service
at attractive terms.
firms
space,
office
provide
to
inclined
be
lender would
prospective
the
of
virtually all
pre-leasing
be
would
If
tenant would bring
then the
found,
could be
such a tenant
to become
space.
office
their
of
renters,
than
anxious
who are
much
project
in the Allston-Brighton area.
Each
of
manufacturing, and
However
office
light
alternatives--soundstage,
three
the
use,
have
inherent
risk.
project
to
the office building appear
the soundstage and
be
considerably more risky than the light manufacturing use.
The building of a soundstage may be attractive, as the
project
start
will
of
be
virtually
construction.
uncertainty concerning
a
prior
100% pre-leased
However,
major
46
there
tenant
is
to
the
considerable
which relies
on the
be
will
which
of
needs
the
suit
would
which
structure
of this
expensive
less
a
developing
by
building
Some
to locate.
any
tenant
substitute
a
specialized
the
will be difficult
reduced
be
can
business,
utilize
to
able
characteristics
risk
of
out
goes
Filmarts
reason,
for
If,
series.
television
single
a
of
production
Filmarts,
at
and
the same
time be easily adaptable to a manufacturing use
Filmarts
decides
can
it
longer
no
the
with
associated
be
if
project.
The
this
site
also
contains
a
had
the sense
into
office
square
feet
of
space
space
to
will
the
noted that these
of
eastern
end
Harvard
Square
does
The
existed.
School
It
risk.
themselves to be
The
"pioneers"
they have developed an office use where none
previously
it must be
on
building
of
element
large
Harvardview developers consider
in
office
class
first
a
of
development
conversion
market
not appear
as
in
and
late
offer
Mass Pike
than
if George
Wahn
Barrett
the
additional
two projects are
Western Avenue,
and the
an
bring
of
1986.
However
located at the
better
does
30,000
the
access
to
Wahn site.
is willing to assume
the risk of developing an office building in a market where
the strength of the market is doubtful.
47
DEVELOPMENT PROPOSALS
CHAPTER FOUR:
facility
consisting
office
space.
manufacturing
industrial/light
space
an
third
The
building.
and
be
will
proposal
second
The
mixed-use
a
warehouse
soundstage,
a
of
is
first
The
chapter.
this
in
considered
be
will
proposals
development
separate
Three
proposal will be for a first class office building.
Copley
Estate
Real
the
Advisors,
estate
real
development arm of New England Life Insurance Company, uses
a
first
hurdle
For
Bill
year
rate
return
when
comparison,
on
reviewing
the
present
for
projects
yield
6 percent.
approximately
is
of
capital
total
11
percent
their
as
a
portfolio.
on
a
one
year
Treasury
By
using
this
measure,
one can quickly discover the merit of a particular proposal
without
getting
into
a
sophisticated
after
tax
analysis.
If the project has an 11 percent return in the first year,
before
tax,
then
the
return
will
only
improve
with
time,
and after tax considerations are taken into account.
Each
of
the
three
alternatives
will
this first year rate of return measure.
Mixed-use structure
48
be analyzed
using
The
facility consisting
mixed-use
story,
space
office
for Filmarts
a
of
two
foot,
square
35,000
a
is
proposal
first
and
soundstage
as well as warehouse and office
space for the Wahn Company.
The
8,335
a
foot sound studio, and 12,000 square feet of office
square
The Wahn Company will
space for Filmarts or other tenants.
space as well as 3,000
have 8,000 square feet of warehouse
feet of office space.
square
Due
consideration.
by Filmarts,
and
the four
to
as
loading bays required
on-
loading bay for Wahn,
one additional
parking
surface
truck
design
major
a
are
requirements
Parking
site
have
will
facility
foot
square
35,000
required
the
by
code
zoning
be accommodated.
cannot
One design alternative utilized a below grade structured
An initial
arrangement.
parking
provided
by
a
national
cost premium of
construction
company
This
cost
included
reflected
a
this below grade
$1.25 million to provide
structure.
parking
feasibility cost estimate
sheeting,
shoring
and bracing, as well as dewatering and excavation costs.
Faced with this large
options.
several
raised
to
first
The
to accommodate
meet
the
zoning
premium cost, the developer
floor
of
the
structure
parking; an off-site
requirements
might
be
could
be
parking facility
acquired;
variance from the parking requirement could be sought.
49
has
or
a
The zoning code allows off-site parking, provided that it
1,200
within
is
which
have
been
lots.
In
addition,
feet
the
of
as
identified
due
parcel.
to
There
potential
parcels
off-site
parking
amount
small
the
two
are
of
traffic
which will be generated by this project, a variance may be
a
possibility.
the
variance
Appeals
Both the
alternative
hearing
and
off-site
will
will
require
add
and
parking alternative
a
Zoning
months
several
Board
of
to
the
development schedule.
Shown
below
are
the
major
assumptions
used
in
first mixed-use proposal:
Building Gross Area...........35,000
square feet
Hard Cost..................$100/square foot
Soft Cost..................20% of Hard Cost
Total Development Cost (exclusive of land)
$4,500,000
Long Term Debt..30 yr term, 10.5%
100%
interest
of development costs
Vacancy rate............................... 5%
Contract Rent Rate.........$22/square foot
Real Estate Tax......................$2/ft
Land Contribution..................$500,000
Off-site Parking Allowance........$100,000
50
this
As
first
shown
year
in
economic
the
return
analysis
capital
on
is
in
8,
Figure
11.7%
for
the
the
base
assumptions, which exceeds the hurdle rate of 11%.
for
foot
square
8
paying
present
their
to
location
10
per
dollars
1380
at
Soldiers
Wahn
between
on preliminary discussions
Based
Road.
Field
is
Filmarts
Currently
and Filmarts it appears very unlikely that Filmarts will be
to
willing
their
double
rent
current
for
even
overhead,
more advanced facilities.
The
(DCR)
rent
$22/sf
of
1.18,
the rent
rate
which
yields
a
is
fairly
coverage
debt
conservative
ratio
figure.
If
then the DCR falls to 1.06.
lowered to $20/sf,
is
a
At $18/sf, the debt service can no longer be covered by the
net project income.
A
sensitivity
performed
project
varies
as
cost
rent
shown
analysis
of
first
in
8,
which
Figure
11%
rate
the
$12/sf,
of
return
owner
and
land),
would
of absorbing a
result.
would
receive
a
at
total
the
varies
the
was
time
same
project was built, and
If a $3,000,000
rates.
if Filmarts was capable
a
of
(exclusive
return
year
rent cost of
At
a
rent
if
11% return
$16/sf,
rate
the
of
total
development cost was $2,000,000.
A
$2,000,000
rent
the
project
comparable
to
(exclusive
Filmarts'
of
land)
present
would show an adequate return to the owner.
of
$12/sf,
first
year
the
DCR
return
would
would
be
a
be
51
conservative
11%.
would
quarters,
make
and
At a rent rate
1.27,
However,
and
the
significant
the
construction
hard
For a
cost.
construction
$100/sf
a
current
of Filmarts result
project,
$2,000,000
be
have to
would
costs
the
present
criteria to meet the requirements
design
in
at
as
required,
be
would
redesign
significantly
reduced to $45/sf.
In
order
to
the
rent
Filmarts,
by Filmarts nor
a
If
Company.
be paid by the George H. Wahn
can it
redesign
drastic
that
such
undertaken,
is
then the rent rate
to $45/sf,
costs are reduced
the project
is
office space rent, and cannot be
to first class
comparable
the
rent rate
This
on captital.
$22/sf
the
provide
to
and
coverage
debt
year return
first
required
paid
the
satisfy
to
range
in
be
to
have
would
level
of
requirements
design
the
accommodate
reasonable $12/sf.
becomes a more
Warehouse/Light Industrial Scenario
building.
industrial
will
structure
studio,
costs
and
will
be
parking
proposal
are
simpler
estimated
fifty
dollars
first proposal, a
site
much
than
per
similar
The
to
financial
the
first
previous
hard
square
$100,000 allowance is
lot.
the
included
assumptions
and
As
in
film
the
for an offfor
are
below:
Building Gross Area................35,000 sf
Hard Cost............................$50/sf
52
of
construction
foot.
proposal,
type
this
of
the
that
warehouse/light
a
for
construction
The
is
it
be
is
proposal
second
The
this
shown
Soft Cost..................20% of Hard Cost
Total Development Cost
(exclusive of land)......$2,300,000
Long Term Debt...30 yr term, 10.5% interest
100%
of development costs
Vacancy rate..............................5%
Contract Rent Rate...................$13/sf
Real Estate Tax.......................$2/sf
Land Contribution..................$500,000
Off-site Parking Allowance.........$100,000
Assuming a rental
rental
as
shown
is achieved, an 11.4%
in
Figure
debt
the
then
$10/sf,
to
slips
rate
$13/sf
results,
return
year
first
rate of
If
the
not
be
by
9.
can
covered by net operating income.
on
Based
McCall
Leggat,
real
estate
and
Waltham
square
included
Avenue
August
and
areas
This
1985
market
survey
conducted
a
Boston
based,
full
service
the Brighton,
Newton,
Werner,
brokerage
foot.
physical
an
firm,
from
range
characteristics
location, this
four
variation
large
in the study.
in
rents
and
to
twelve
is due
location
per
dollars
to
the various
of
facilities
For a new facility, with a Western
proposed R&D
facility should achieve
the higher end of the rent spectrum.
shown
As
Figure
in
the
analysis
sensitivity
included
in
9, if the total development cost (exclusive of land)
increases
to
$3,000,000,
then
53
a
$16/sf
rent
rate
adequate
and
ratio,
reduced
the
the
satisfy
still
and
the
then
$2,000,000,
to
$11/sf
to
reduced
be
could
rent
be
can
costs
development
year
however,
If
return.
first
coverage
debt
conservative
a
have
to
required
be
would
return and debt coverage requirements.
use
space
This type
site.
this
of
provide the
the
Brighton
the
in
remain
also
would
and
Company,
Wahn Company could remove much of
addition, the
In
area.
structure would
to
desire
Wahn's
George
satisfy
appropriate
Wahn
the
of
requirements
a
most
be
to
of
Avenue,
Western
of
context
seems
use
manufacturing
light
site
the
Considering
of the facility for its own
the project risk by leasing 30%
use.
is
paying
space
in
Company
Since
must
it
However
the
be
may
$11/sf,
it
relocate
his
less
that
noted
be
$5/sf
than
new
at
for
manufacturing
current
space.
facility
will
be
for
Wahn
to
advantageous
financially
operation to less
its
Wahn
the
present
expensive quarters, and rent
the new building at a higher rate to other users.
First Class Office Building
The
class
alternative
third
office
building,
$100/sf,
and
Financing
terms
options.
a
total
remain
is
a
29,000
construction
hard
with
development
the
same
square
as
cost
in
the
of
first
costs
of
$3,580,000.
previous
A gross rent rate of $25/sf is assumed.
54
foot
two
The
used
were
assumptions
following
office
this
in
building alternative:
Building Gross Area................29,000 sf
Hard Cost...........................$100/sf
Soft Cost...................20% of Hard Cost
Development
Total
Cost
(exclusive of land)......$6,100,000
interest
Long Term Debt...30 yr term, 10.5%
100% of development costs
Vacancy rate.............................5%
Gross Rent Rate......................$25/sf
Real Estate Tax & Op Expenses.........$5/sf
Land Contribution..................$500,000
Off-site Parking Allowance.........$100,000
As
year
first
return
of
rate
in
analysis
economic
the
in
shown
11.3%
is
10,
Figure
base
the
for
the
assumptions, which exceeds the hurdle rate of 11%.
However,
has
not
Lincoln
vacant.
yet
noted
as
been
Street
earlier,
established
is
being
Harvardview
class
the
in
this
at
offered
originally
hoped
area
A
office
of
$15/sf,
to
get
market
214
Boston.
and
is
92%
in
the
low
twenties for their space, but signed most of their deals
the
eighteen dollar range.
the
Allston-Brighton market
Based
on current market demand,
cannot
in the near future.
55
in
attract
$25/sf
tenants
In
10.
Figure
in
included
is
level
rent
If the
1.18.
is
DCR
no
then the project debt can
$22/sf,
to
from $25/sf
drops
the
case,
base
the
and
alternative,
this
for
performed
was
varied
rate
rent
market
the
as
ratio
coverage
debt
the
of
sensitivity
the
measured
which
analysis
An
longer be covered by the net operating income.
sensitivity
the
measured
project
total
the
sensitivity
second
A
year
first
the
of
(exclusive
return as
both
the
rent
and
land)
the
if
that
revealed
analysis
This
varied.
costs
of
which
performed
was
analysis
the
of
scope
project could be reduced to $3,000,000, then a rent rate of
could
$22/sf
be
29,000
this
eighty
of
cost
square
foot building would have a construction
first
class
office
work,
could
be
indicated
all
including
building,
constructed
has
area
the Boston
in
tenant
approximately
for
major
A
foot.
square
per
dollars
six
contractor
general
costs,
soft
for
percent
20
Assuming
1.18.
conservative
fairly
a
be
DCR would
the
criteria,
these
With
11.2%
owner would
the
return to
be charged, and the
that a
finish
eighty
five
dollars per square foot.
There
class
it
office
rates
Rent
the
A
is
in
considerable
building at
the
low
this
first year return criteria
is
unlikely
Brighton,
when
that
tenants
alternatives
of 11
will
such
56
time
will
twenties
in
risk
market
be
as
be
in
developing
Western
necessary
percent.
willing
Newton,
Avenue.
to
meet
At this
to
a
locate
Cambridge
time
in
and
locations
attractive
more
offer
Waltham
and
amenities
at
the same level of rent.
the
In addition,
It
their
with
the
move,
initial
Figure
11
is
discussed.
highest
return,
both
identical
and
rates
manufacturing
this Class A office
for
difficult
very
Wahn
the
and warehouse space
office
as
However, the costs associated
well
comparison
a
The
as
any
and
the
$22/sf
George
manufacturing
of
facility
return,
contains
the
of
soundstage
however the
Filmarts
office
as
have to
Wahn Company would
in
increase
rent
factored into the analysis.
options
the
be
needs are very basic.
would have to be
for
not
should
locate acceptable
Company to
H.
present operation under
relocate their
scenario.
George
proposal
development
generates
H. Wahn Company.
scenarios
the
the
is prohibitive
rent rate
have
substantially
While
virtually
development
compared to an office use for this site.
57
three
less
of
a
risk
as
CHAPTER 5:
final chapter will attempt to discuss some of the
This
for
The effect of the Interim Planning Overlay
this site.
Wahn Company
the
for
methods
and
District
development
future
a
with
involved
considerations
broader
BROAD CONSIDERATIONS
the
reduce
to
project risk will be considered.
Effect of Interim Planning Overlay District
making
When
effect
the
of
select,
to
alternative
the
consider
carefully
must
one
development
which
to
as
decision
the
(IPOD),
Interim Planning Overlay District
and
the concerns and objectives of the community.
IPOD
The
community
by
the
By
October
by
the
the
IPOD
by
with
the
the
and
how the
for
quality
and
Code.
of
the
of
BRA and
groups.
Wahn
be affected
the
and
leaders
At
the
as
establishments,
and
traffic and parking concerns were raised.
58
an
issues
PZAC,
retail
become
conversations
community
the
Committee.
George
uses will
informal
zoning staff
housing,
Zoning
proposed
conducting
meeting
Advisory
drafted
be
will
Allston-Brighton
organizational
affordable
IPOD
process of being drafted
Zoning
and
Building
investigate
meetings
of
Planning
the
1986,
to
amendment
should
is currently in the
such
its
location on Western Avenue does
for
a residential
As
use.
it appropriate
not make
proposed development
long as the
the context
plan provides a use which is compatible within
of
the
support
lend
will
groups
community
truck activity
to
perhaps
then
residents,
adjacent
the
disturb
would
which
will not create early morning
and
residents,
facility will
Allston-Brighton
for
jobs
accessible
easily
provide
industrial
that a new light
can demonstrate
George Wahn
if
fact,
In
site.
at this
new structure
to a
opposition
be much community
should not
area, there
the
and
industrial,
for
primarily
zoned
is
site
Wahn
The
the
proposed
project.
soundstage
the
Although
prohibitive
proposal may have
rent rates at present, if the studio could be redesigned so
could
expect
Bureau
support
full
the
this
concerning
rent,
the
afford
could
Filmarts
that
the
of
developer
the
Film
Massachusetts
fact,
In
project.
then
the
MFB
has
already taken an active role in lobbying for the support of
the
which
influence
to
feature
MFB may
convince
importance
films
MFB
Massachusetts
of
the
Department,
by
the
Since
Commonwealth
production studio
music
a
proposed
being
is
Productions.
the
of
development
of
is
the
a
be
the
to
BRA and
glamourous,
and
exercise
the
new soundstage.
59
division
a
Commerce
able
of
Giosia
Robert
is
Dorchester
in
Global
of
the
Development
considerable
community groups
of
The production
of
quiet,
non-polluting
industry
by
welcomed
be
should
and
area,
the
for
the
Allston-Brighton neighborhood.
Methods for Wahn to Reduce the Development Risk
Wahn
the
discussed,
proposals
three
the
of
each
In
Company has limited its risk by not investing any cash into
the
the
contribution of
The
project.
been
Wahn Company has
limited to the value of the land.
The
Filmarts
proposal
stage
sound
committed as
was
Wahn
the
and
Filmarts
With
construction.
start
of
Company
as
to the
prior
a tenant
if
considered
should only be
tenants, the structure would be 100 percent pre-leased, and
would remove much of the development risk in this project.
film
the
Although
production
in
industry
If
soundstages.
it
would
speculative
not
large
this
which
of a
Class A
amount of development
portion
premier
to
feasible
terms,
lease
term
long
concerning
soundstage
build a
pre-
as
a
venture.
Development
a
be
come to a
cannot
and Wahn
Filmarts
large
additional
for
demand
great
agreement
construction
then
a
be
to
is a
there does not
healthy and rapidly growing market segment,
appear
Boston
Charles
River
office
space.
risk,
of Western Avenue
Allston-Brighton
enjoys
office building also contains
better
will
location.
vehicular
as
ever
unlikely that
is
it
be
considered
Soldiers
access
and
Field
views
has more potential to be developed
Pre-leasing
would
60
help
to
of
into
reduce
the
Road,
the
prime
leasing
conditions,
market
on current
based
but
considerably,
risk
it is doubtful that such pre-leasing could occur.
option
The
is the manufacturing/industrial proposal, since such a
risk
pre-lease
to
able
be
Company would
Wahn
the
addition,
in the area.
present use
be consistent with the
use would
In
development
overall
least
the
has
which
approximately 30 percent of the facility for its own use.
the
If
then
structure,
be
could
Filmarts
this
debt makes
project
the
accommodated
a
perhaps
the
be
to
the
Company,
Wahn
best
facility would generate
level
rent
the
return,
of
rate
highest
cover
the mixed-use
Although
alternative.
H.
appears
proposal
manufacturing
light
George
the
of
objectives
development
varied
the
considering
after
conclusion,
In
necessary to
infeasible.
alternative
a
with
expensive
less
could
facility
soundstage
be
developed.
manufacturing
The
varied
the
By
which
will
value of
site
is
the
constructing
a
new,
of
value
Wahn.
and
objectives
development
the
replace
the
the
of
George
first
present
land will increase.
best
will
proposal
satisfy
Wahn.
Increasing
of
objective
income
producing
neglected
the
George
facility
structure,
the
Through thoughtful design
use of materials, the new structure may also encourage
renovation
of
adjacent
commercial
and
residential
properties, thereby improving the character of the area.
61
this
George
Wahn would prefer
parcel
provide
a
feels
Wahn
George
would
alternative
manufacturing
the
requirement.
this
satisfy
Wahn Company electrical
the
for
space
and
business,
supply
that any new development on
strong
committment to his long term employees, many of whom either
on
rely
or
walk
in
located
his
both
maintain
can
Wahn
at
business
his
locating
By
Boston.
George
Avenue,
Western
A
is also preferred, as the company has always
Boston address
been
work.
to
get
to
transportation
public
450
valued
employees and a Boston business address.
of
Mitigation
that
both
the
office
the
and
proposal
is
evident
is
it
While
risk
manufacturing
light
pre-leased
percent
risk.
project
the
twenty
five
the
In
addition,
will
is
it
that
rent needed to
achieved
be
doubtful
at this
be
30
reducing
thereby
Company,
foot
per square
proposal
office
the
dollar
Wahn
to
could
use
manufacturing/industrial
The
of
for the office
return, additional risk must be recognized
project.
rates
similar
generate
proposal
objective.
third
the
project
the
support
location at
this point in time.
final
Wahn's
acceptable
rate
manufacturing
of
11
development
of return
alternative
percent
for the
on
investment be
exceeds
first
is
objective
the
an
achieved.
The
hurdle
rate
capital.
The
initial
year return
that
on
project will have a positive before tax cash flow beginning
with
the
increase
first
with
stabilized
time.
Long
year,
term
62
and
can
benefits
to
be
expected
of
appreciation
will
also
improve
the
investment
project.
63
performance
of
this
NOTES
1
"Lights, Camera, Money.", Boston Globe, 21 April
1985, Boston Globe Magazine, p. 77.
2 The
Economics of Film and Video Production in
Massachusetts, Butterfield Communications Group,
March, 1984. p. 9.
3 Alex
Boston,"
Beam,"Hollywood's New Star: The Streets of
Businessweek, September 30, 1985. p. 40.
64
SELECTED BIBLIOGRAPHY
Beam, Alex. "Hollywood's New Star: The Streets of
Boston,"Businessweek, September 30, 1985, p. 40
Boston Redevelopment Authority. AllstonBrighton/District Profile and Proposed 1979-1981
Neighborhood Improvement Program, 1979.
Boston Redevelopment Authority. Allston-Brighton
Interim Planning Overlay District Discussion
Workbook, Draft Copy, November, 1985.
Boston Redevelopment Authority. Development Review
Procedures, 1985.
Boston Redevelopment Authority. Zoning Procedures-
Boston Approval Process, 1984.
Butterfield Communications Group. The Economics of
Film and Video Production in Massachusetts, March
1985.
Film Investment Symposium '86 notes.
Gilbane Building Company. Preliminary Conceptual
Estimate, 450 Western Avenue, May 12, 1986.
Haley & Aldrich, Inc. Report on Geotechnical
Investigations and Foundation Recommendations for
Proposed Film Studio, Brighton, Massachusetts,
April, 1986.
Leggat, McCall & Werner. Letter to George H. Wahn.
August 21, 1985.
Boston Globe, Boston Globe
"Lights, Camera, Money.",
Magazine, April 21, 1985.
Massachusetts Film Bureau Production Manual.
"Office Space Directory", New England Real Estate
Directory, Summer, 1986.
65
,.4
r4
\.0
\.0
FIGURE 2
SITE PLAN
&H
a
egy .
is
WESTERN
o
-
st Ri: 23 12 (POJEC? Koco maN I
3
:V 12 20 (e1coo
s
(Ecao
1l 77
4Y
'
J
*
-,.0..
-
ELECTRIC
'a
AVENUE
60' WIDE PUOLIC)
..
.
te*
Ejp jnR
I0
a
;37 06 '0 CROSS CUT
A *ES CORNER
OF KELLYCOAT
0
--
-O
1)-
~%*1*~~
2.
*
PTOdAvIVA1MLL
-
44-02-00 E
25
1913 75
*
1(OWa
.
"s450-454 WESTERN AVE.
$4.0C
19iF
~-
I4*sagy
jot
IL53.0 (aPo)
I STORY
MA SONRYS TRUCTURE
'2
CURLEAREA
37109:3a Ft
( .5 was
8
N IL 53.0 (PoAW)
NOLO1.7 (Row)i
MAIL
FUD
29 5
23170
1.40.7y towc)
5.0 (am0F)
NL.
-
i -
Jt
- k ND
aJI
230
27.s6
-
a-I
~
T
EXIS
~
40
2-IM
.u' 3 27.3
TOP
OF
U~W.
rfou, gse 2 2
*tu'24.s 9
2'SOON
2
2.:
.
SILL
2, .
(O)34
-:s or ;=
fls7
-
5U
C.C.
2".6
o
av(ENr
25 49'
50
a?2
27
ac )
7I
-xX
.. Za.
l2
-IEO
ns
./.4
/
ir
L a 30.1
E. 62--4 1-14
L
a32.9'4'
a
C2
a24453-
7
-15-0
tL
224
U
27.04'4-
R s 6 - .75,a
S 34-25-45
L 41. 31
#p
*
4)'t0
67
10
20
40
so
Figure 3
Film Production Revenue By Production Segment
In Millions of Dollars
Percent
1983
Segame n tt
Seame
Industrials
$16.0
1984
Chanqe
$20.0
25%
Commercial
$5.5
$8.0
45%
Features and TV
$7.5
$6.1
-19%
Documentary
$4.0
$5.0
25%
Equipment
$1.6
$1.9
13%
Other
$ .9
$2.0
122%
$43.0
21%
Total
$35.5
(Source: The Economics of Film and Video
Production in Massachusetts)
68
FIGURE 4
SCHEDULE OF MAJOR FILM AND
TELEVISION PROJECTS FILMED ON LOCATION IN MASSACHUSETTS
Year
# of Projects
MGM/UA
COLUMBIA
1977
4
x
1978
4
x
1979
10
1980
8
x
x
1981
16
x
x
1982
14
1983
10
1984
8
1985
6
PARAMOUNT
WARNER
x
x
x
x
x
x
x
(source:Film Investment Symposium '86)
69
FIGURE
5
Revenue of Mass. Filrm Industry
1980-1984
By Prod uA.tion Sejment
4-5
Other
Equipement
4-0
Documentary
z
30
Features/TV
C
-- j
0
-J
25
Commercials
20
S
15
10
Industrials
5
0
1980
1981
1982
YEARS
1983
1984
FIGURE 6
SOUNDSTAGE COMPARABLES
Height to
Area
Dimensions
Name of Soundstage
Light Grid
(ft)
(ft)
(sf)
BOSTON
110 X 90
10,000
17
100 X 60
6,000
18
90 X 60
5,600
26
50 X 50
2,500
14
50 X 50
2,400
15
Videocom
40 X 60
2,400
12
Boston Gaffers
35 X 50
1,750
12
Boston Post Productions
35 X 35
1,225
13
Cinema Graphics
28 X 34
952
16
Heliotrope Studios
27 X 16
432
13
217 x 120
26,000
40
Filmarts
WGBH
(Stage A)
5
Channel
Television Prod. Services
WGBH
(Stage B)
NEW YORK
Kaufman Astoria
(Main Stage)
Kaufman Astoria
(Stage
G)
134 x 90
12,000
31
Kaufman Astoria
(Stage H)
134 x 90
12,000
31
94 x 75
7,050
33
(Stage A)
84 x 76
6,384
16
Silver Cup (Stage B)
65 x 42
2,730
36
Cup (Stage C)
62 x 37
2,294
12
Camera Mart
Silver Cup
Silver
71
FIGURE 7
OFFICE BUILDING COMPARABLES
#fl Rent
Building
avail
vac
rent
(sf)
(%)
($/sf)
(sf)
Harvardview
5
50,000
12,000
24%
20 gross
214 Lincoln St.
4
96,000
96,000
100%
15 gross
25 Travis Street
4
30,000
30,000
100%
18 gross
108 Lincoln St.
6
23,000
1,600
7%
15 net
150 Lincoln St.
6
30,000
0%
12
186 Lincoln St.
9
70,000
6,000
9%
10.5 net
210 Lincoln St.
9
63,000
3,300
5%
15 net
40 Soldiers Field Pl
1
15,000
0
0
15 gross
1320 Soldiers Field Rd 1
18,000
18,000
100%
1380 Soldiers Field Rd 2
45,000
12,000
27%
18 net
1550 Soldiers Field Rd 1
29,000
25,000
86%
14 gross
Field Rd 3
32,000
2,200
7%
16 gross
1660 Soldiers Field Rd 2
50,000
6,700
13%
1616 Soldiers
0
N/A
14 net
13
Total Number of Buildings
Total Square Footage
322,000 sf
Total Vacant Space
212,800 sf
66%
Overall Vacancy Level
(Source: New England Real Estate Directory)
72
FIGURE
MIXED-USE
8
FINANCIAL ANALYSIS
73
MIXED-USE PROFORMA
FINANCING
GENERAL INFORMATION
LAND SQ.FT
BLDG SQ. FT(GROSS)
BLDG NET RENTABLE
FAR
PARKING STALLS
HARD CONST. COST
37,109 sf
35,000
29,750
1
35
$100 Ift
PERM:
AMOUT
RATE
TERM
ANORT.
FDS
$100,000
OFF SITE PARKING ALLOW
$3,500,000
HARD CONST COST
20% $700,000
SOFT COST @ 201
TOTAL DEV COSTS
RENT RATE (S/FT)
RE TAX ($/FT)
LAND CONTRIBUTION
$4,300,000
22
2
$500,000
1987
GROSS REVENUE
654,500
-VACANCY 0 5%
32,725
-RE TAX
59,500
NOI BEFORE DEBT SERVICE
562,275
DEBT SERVICE
475,272
CASH FLOW AFTER DEBT SERV
87,003
TOTAL CASH FLOW BEFORE TAX
87,003
11.7%
RETURN ON CAPITAL
NET INCOME/(TOTAL DEV COST+LAND)
74
$4,300,000
10.51
30 yr
15 yr
$475,272
MIXED-USE PROFORMA
SENSITIVITY ANALYSIS
VARY RENT AND OBSERVE EFFECT ON BTCF, DCR, ROR
ROR
DCR
DEV COST BTCF
+D43/D45 +D51
+D43
+D23
$449,225
0.95
18$4,300,000
1.06
$505,750
20 $4,300,000
1.18
$562,275
22 $4,300,000
1.30
$618,800
24 $4,300,000
1.42
$675,325
26 $4,300,000
1.54
$731,850
28 $4,300,000
1.66
$788,375
30 $4,300,000
R
E
N
T
9.4%
10.5%
11.7%
12.9%
14.1%
15.2%
16.4%
VARY RENT AND TOTAL DEV COST; OBSERVE EFFECT ON ROR
+D51
R
E
N
T
DEV COSTS
$2,000,000 $3,000,000 $4,000,000 $5,000,000
4%
6%
51
9%
10
5%
6%
8%
11%
12
7%
8%
10%
15%
15
8%
13%
10%
18%
18
9%
11%
14%
20%
20
10%
16%
12%
22%
22
14%
11%
18%
25%
24
VARY RENT AND TOTAL DEV COST; OBSERVE EFFECT ON DCR
+D43/D45
R
E
N
T
DEVELOPMENT COST
$2,000,000 $3,000,000 $4,000,000 $5,000,000 $5,500,000
0.37
0.40
0.67
0.50
1.01
10
0.46
0.51
0.84
0.63
1.27
12
0.55
0.76
0.61
1.01
14
1.52
0.71
0.65
0.89
1.18
16
1.78
0.74
0.81
1.35
1.02
2.03
18
0.83
1.14
0.92
1.53
20
2.29
0.92
1.70
1.27
1.02
22
2.54
1.02
1.12
1.87
1.40
2.80
24
75
FIGURE 9
LIGHT MANUFACTURING FINANCIAL ANALYSIS
76
LIGHT MANUFACTURING PROFORMA
FINANCING
GENERAL INFORMATION
37,109 sf
35,000
29,750
1
35
$50 /ft
LAND SQ.FT
BLDG SQ. FT(GROSS)
BLDG NET RENTABLE
FAR
PARKING STALLS
HARD CONST. COST
PERM:
AMOUT
RATE
TERM
AMORT.
$2,200,000
10.5%
30
15
FDS
OFF SITE PARKING ALLOW
HARD CONST COST
SOFT COST @ 201
$243,163
$100,000
$1,750,000
201 $350,000
TOTAL DEV COSTS
RENT RATE ($IFT)
$2,200,000
13
RE TAX($/FT)
LAND CONTRIBUTION
2
$500,000
1
1987
GROSS REVENUE
386,750
-VACANCY @ 5%
19,338
-RE TAX
59,500
NOI BEFORE DEBT SERVICE
307,913
DEBT SERVICE
243,163
CASH FLOW AFTER DEBT SERV
64,750
TOTAL CASH FLOW BEFORE TAX
64,750
RETURN ON CAPITAL
NOI/(TOTAL DEV. COST+LAND)
11.4%
77
LIGHT MANUFACTURING PROFORMA
SENSITIVITY ANALYSIS
VARY RENT AND OBSERVE EFFECT ON BTCF, DCR, ROR
ROR
BTCF
DCR
DEV COST
+D36/D38 +D45
+D42
+D20
0.92
($20,038)
10 $2,200,000
1.03
$8,225
11 $2,200,000
1.15
$36,487
12 $2,200,000
1.27
$64,750
13 $2,200,000
1.38
$93,012
14 $2,200,000
1.50
$121,275
15 $2,200,000
1.85
$206,062
18 $2,200,000
R
E
N
T
8.3%
9.3%
10.4%
11.4%
12.5%
13.5%
16.6%
VARY RENT AND DEV COST, OBSERVE EFFECT ONROR
+D45
R
E
N
T
DEV COST
$2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000
5.6%
5.0%
6.4%
7.4%
8.9%
10
6.3%
5.6%
7.2%
8.4%
10.1%
11
7.0%
6.2%
8.0%
9.3%
12
11.2%
6.8%
7.7%
8.8%
10.3%
13
12.3%
7.5%
8.4%
9.6%
13.4%
11.2%
14
8.1%
9.1%
10.4%
12.1%
15
14.6%
8.7%
9.8%
11.2%
15.7%
13.1%
16
VARY RENT AND DEV COST, OBSERVE EFFECT ONDCR
DCR
+D36/D38
R
E
N
T
10
11
12
13
14
15
16
$2,000,000 $2,500,000
0.81
1.01
0.91
1.14
1.01
1.27
1.11
1.39
1.22
1.52
1.32
1.65
1.42
1.78
DEV COST
$3,000,000 $3,500,000 $4,000,000
0.50
0.58
0.67
0.65
0.57
0.76
0.63
0.72
0.84
0.70
0.80
0.93
0.76
0.87
1.01
0.82
0.94
1.10
0.89
1.02
1.18
78
FIGURE 10
OFFICE BUILDING FINANCIAL ANALYSIS
79
OFFICE BUILDING PROFORMA
FINANCING
GENERAL INFORMATION
LAND SQ.FT
BLDG SQ. FT(GROSS)
BLDG NET RENTABLE
FAR
PARKING STALLS
HARD CONST. COST
29,000 sf
29,000
24,650
1.0
100
$100 /ft
$100,000
OFF SITE PARKING ALLOW.
$2,900,000
HARD CONST COST
20% $580,000
SOFT COST @ 201
TOTAL DEV COSTS
RENT RATE ($/FT)
RE TAX AND OP EXP.($/FT)
LAND CONTRIBUTION
PERM:
AMOUT
RATE
TERM
AMORT.
FDS
$3,580,000
25
5
$500,000
1987
GROSS REVENUE
616,250
-VACANCY @ 5%
30,813
-RE TAX AND OP EX
123,250
NOI BEFORE DEBT SERVICE
462,188
DEBT SERVICE
395,692
CASH FLOW AFTER DEBT SERV
66,496
TOTAL CASH FLOW BEFORE TAX
66,496
RETURN ON CAPITAL
NOI/(TOTAL DEV. COST+LAND)
11.31
80
$3,580,000
10.51
30
15
$395,692
OFFICE BUILDING PROFORNA
SENSITIVITY ANALYSIS
VARY RENT RATE; OBSERVVE EFFECT ON BTCF, DCR, ROR
20
22
24
26
28
30
R
E
N
T
ROR
DCR
BTCF
DEV COST
+D43
+D34/D36
+D40
+D18
0.87
($50,592)
$3,580,000
0.99
($3,757)
$3,580,000
1.11
$43,078
$3,580,000
1.23
$89,913
$3,580,000
1.35
$136,748
$3,580,000
1.46
$183,583
$3,580,000
8.5%
9.6%
10.8%
11.9%
13.1%
14.21
VARY RENT AND DEV COST; OBSERVE EFFECT ON ROR
+D43
R
E
N
T
20
22
24
26
28
30
DEV COST
$2,500,000 $3,000,000 $3,500,000 $4,000,000
7.7%
8.6%
9.9%
11.5%
8.7%
9.8%
11.2%
13.1%
9.8%
11.0%
12.5%
14.6%
10.8%
12.1%
13.9%
16.2%
11.8%
13.3%
15.2%
17.7%
12.9%
14.5%
16.6%
19.3%
VARY RENT AND DEV COST; OBSERVE EFFECT ON DCR
+D34/D36
R
E
N
T
20
22
24
26
28
30
DEV COST
$2,500,000 $3,000,000 $3,500,000 $4,000,000
0.78
0.89
1.04
1.25
0.89
1.01
1.18
1.42
0.99
1.13
1.32
1.59
1.10
1.26
1.46
1.76
1.20
1.38
1.61
1.93
1.31
1.50
1.75
2.10
81
FIGURE 11
DEVELOPMENT ALTERNATIVES
Mixed-use
Office
35,000
35,000
29,000
$4,300,000
$2,200,000
$3,580,000
Gross Area(sf)
Project Cost
Manufacturing
Rent Level($/sf)
Rate of Return
Debt Coverage Ratio
13
22
11.4%
11.7%
1.27
1.18
82
25
11.3%
1.17