RESIDENTIAL DEVELOPMENT PROPOSAL
FOR A SITE IN BRIGHTON, MASSACHUSETTS
by
Andrew W. Gutowski
Master of Architecture, Harvard Graduate School of Design
(1978)
B.S. in Architecture, University of Virginia
(1975)
and
Maria D. Hill
Master of Business Administration, Boston College
(1979)
B.A. in Literature, Wheaton College
(1974)
SUBMITTED IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS OF THE
DEGREE OF MASTER OF SCIENCE
IN REAL ESTATE DEVELOPMENT
at the
MASSACHUSETTS INSTITUTE OF TECHNOLOGY
September 1986
Andrew W. Gutowski and Maria D. Hill
1986
The authors hereby grant to M.I.T.
permission to reproduce and to distrubute copies
of this thesis document in whole or in part
.111
Signature of the Authors
A
/ Dbprtment
I
W~~'tblr
August 15, 1986
Department of Urban Design and Planning
/ Aucust 15. 1986
Certified by
James McKellar
Professor of Architecture and Planning
Thesis SunErvisor
Accepted by
James McKellar
Chairman
Interdepartmental Degree Program in Real Estate Development
A
S
NST
F?A R IEF9
ACKNOWLEDGEMENTS
We wish to thank the following people for their
help during the course of this work:
Jim McKellar and Rick Lamb for their guidance
Wig and the computer room crew for their friendship
Steve and Francesca for their support and love
Art Middleton and Albert Welch for the opportunity
2
RESIDENTIAL DEVELOPMENT PROPOSAL
FOR A SITE IN BRIGHTON, MASSACHUSETTS
by
Andrew W. Gutowski and Maria D. Hill
Submitted to the Departments of Architecture and
Urban Design and Planning on August 15, 1986 in partial
fulfillment of the requirements for the
Master of Science in Real Estate Development
ABSTRACT
This
thesis examines the development potential of an
industrial
site located in one of Boston's older urban
neighborhoods.
The history of the community is examined, along with its
pattern of growth and change. The site is analyzed in
relationship to its spatial,
locational, and utilitational
qualities. The particular constraints and opportunites that
the site imposes are explored. The political environment and
the rise of power of local community groups is addressed. A
market analysis is conducted and comparable market data is
presented.
A residential program for the site is designed and presented
with reference to the results of analysis. Pricing and
marketing strategies are suggested. The paper concludes with
a financial analysis of the program for the site and a
discussion of alternative investment strategies for the
landowner.
Thesis Supervisor: James McKellar
Title:
Professor of Architecture and Planning
3
TABLE OF CONTENTS
Page
Title Page
0.. .........-
..........................
.-1
Acknowledgements ....................
.2
Abstract ............................
.3
Table of Contents ...................
.4
List of Exhibits ....................
.6
Introduction ........................
.7
Project background .............
.7
Problems to be explored ........
.8
Organization of the document ...
.8
I. The Allston-Brighton Neighborhood: an Overview . . . . . . .11
. . . . . . . . . . . . . . . .11
The history of Allston-Brighton
Population and demographics ....
. . . . . . .14
Income and employment ..........
. . . . . . .16
II. Site Description ................
-19
Site location .................
-19
Neighborhood uses .............
.20
Traffic patterns ..............
.22
Opportunities and constraints .
.24
Issues of urban design ........
.24
.42
III. Political and Regulatory Framework
Existing zoning ................ .
Allston-Brighton Re-Zoning .....
.
.42
.44
City exactions ............ ....................... 48
4
IV.
The Residential Housing Market............
.51
Housing market in Boston ................
.51
Allston-Brighton's housing market .......
.54
Price appreciation and recent changes ...
.55
Comparables ..............................
.55
Future competition in the Brighton market
.58
.61
V. Development Program
Building type .....
.61
Design rationale
.63
Pricing
.. .
.65
. ....
Market concept and techniques
.73
VI. Investment Decision
Deal structure
.66
.76
....
Market risks ......
.79
Finanical risks ...
.81
Bibliography .
. . . . . . . .
Appendices ... .
. . . . . . .
.. .. .
. . . . . . . . . . . . . . . . . . . . . .83
.. .. .
. . . . . . . . . . . . . . . . . . . . . .85
5
LIST OF EXHIBITS
Page
Figures
. .
. . 30
..
. . .
. . 31
..
Fig.1
Map of Boston ...............
.
. . .
Fig.2
Map of Brighton .............
.
. .
Fig.3
Proposed Site ...............
32
Fig.4
Contour Map .................
33
Fig.5
Site Section ................
34
Fig.6
N'eighborhood Features .......
.
. .
. . .
. . 35
..
Fig.7
Zoning Map ...................
.
. .
. . .
. . 36
..
Fig.8
Auto and Bus Circulation ....
Figs.9-12
........
37
Photographs of the Site a nd Neighborhood ..38-41
Fig.13
Projected Residential Develo pment in Brighton....60
Fig.14
Program of the Proposed Development .......... ...
Fig.15
Plan of Proposed Development and its Context . ... 70
Fig.16
Plan of Proposed Development .................
Fig.17
Section of the Proposed Development .......... ... 72
Fig.18
Project Proforma and
Cash Flow Analysis.............................
6
69
.71
..
86
.....
INTRODUCTION
of this paper is to examine the
intention
The
potential of an industrial site in Brighton,
development
Massachusetts.
wants to know if there is value to be created
The landowner
He
by relocating his business and developing the land.
asked
and
market,
political,
authors of this paper to examine the
the
financial
risks
associated
has
with
various
in
Brighton
development options.
BACKGROUND
The
owner
sought
an earthmoving company located
sense
aid of the writers to see if it made
the
the
develop
estate
of
land
occupies.
it presently
real
Changing
markets had dramatically increased the value of
land and several developers had offered him up to 2
dollars
for the 3.7 acre parcel.
understood
that
he
However,
his
million
the land
could realize much more profit
owner
if
he
There were
participated in the development of the property.
unknown risks
to
that he sought to understand and the
authors
were asked to examine his options.
The
first
studies revealed that his parcel alone
ideal for development.
was
not
This site (Fig.3, Parcel A) was very
irregular, very deep, and had a major sewer easement running
across it.
It was clear that it would be difficult to place
buildings on the site.
of
unattractive
Electric
There was also a considerable amount
activity next
industrial
Avenue,from the site.
7
to
and
It was decided to
across
approach
the
owner of this land (Fig.3,
Parcel B) to determine
his
interest in including his land in the study. He agreed. This
document
a study of the development potential of
is
these
two parcels of land.
PROBLEMS TO BE EXPLORED
This
paper will examine the history of Allston-Brighton and
explain the orgins of the present development crisis in this
community.
explored.
will
The political and regulatory constraints will be
The
forces that generate the demand for
be examined as well as the specific character
housing
market in Allston-Brighton.
A development
housing
of
the
program
will be established for the site and a finanical analysis of
the program will be presented.
a
discussion
of
the
The paper will conclude with
risks and
returns
associated
with
alternative investment strategies.
ORGANIZATION OF THE DOCUMENT
THE ALLSTON-BRIGHTON NEIGHBORHOOD: AN OVERVIEW
Chapter
from
are
One
explores the development
1647 to the present.
evaluated
with
of
Allston-Brighton
Demographic and economic
respect
to their
impact
on
trends
housing
patterns.
SITE DESCRIPTION
The
unique
charateristics of the site are
discussed.
Its
configurational and locational attributes are evaluated. The
existing neighborhood is examined and traffic patterns, city
8
services,
the
and the public transportation system serving
The constraints and 'the opportunites
site
are
delineated.
that
the
site presents to an architect are explored and
a
project design is generated.
POLITICAL AND REGULATORY FRAMEWORK
The greatest problem that faces this project is the mounting
of
ire
Allston-Brighton
the
City is supporting the community groups,
ever.
The
under
pressure
tremendous
political
This section
regulatory environment
and
for
yet is
meet
the
examines
the
to provide construction jobs and
demand for housing.
than
projects
time that developers are building more
same
the
quickly gaining political strength at
is
neighborhood
The
groups.
community
development
in
Allston-Brighton.
THE RESIDENTIAL HOUSING MARKET
Currently
since
60%
Boston is undergoing the greatest housing
World War II.
Prices of homes have increased by over
during the past two years and Boston now stands as
of the most expensive housing markets in the
has
crisis
country.
created a tremendous rush of residential
one
This
construction,
to the point where home prices are starting to stablize. The
Allston-Brighton
backdrop.
as
housing
market is examined. against
this
Several comparable projects are reviewed, as well
projects
that
are still in the
planning
stages.
The
competitive advantages of the project proposed in this paper
are set forth.
9
PROGRAM
Based
the
upon the housing market,
neighborhood
a
program
for
the urban design implications of building location.
range
of
unit prices are outlined,
concepts, and
techniques.
A site
illustrates the development,
as well
plan,
is
well
The
marketing
as
which
and
site
the
The mix of building types is explained as
described.
as
context,
the political climate,
graphically
is presented.
FINANCIAL ANALYSIS
This
the
chapter explores the investment decision to be made by
landowner
and
presents a financial
residential program designed for the site.
10
analysis
of
the
CHAPTER ONE
THE ALLSTON-BRIGHTON NEIGHBORHOOD: AN OVERVIEW
Allston-Brighton,
Massachusetts
is
most
the
populous
neighborhood in the City of Boston with a population in 1985
of
approximately 88,000
Allston,
Brighton, and
primarily
with
stability.
It has three
.
Commonwealth,
respect
to housing
sub-neighborhoods:
which
type
are
and
The sub-neighborhood of Brighton,
distinct
residential
within which
the subject parcel is located,' is distinguished by its older
housing stock,
as
well
as
its greater percentage of elderly residents,
by a proliferation
owner-occupied
of
single
family housing (74% of the entire neighborhood), which today
is a minority housing type in Allston-Brighton.
Allston-Brighton
Harvard
Business
College,
three
is the home of three
School;
major
Boston
hospitals
major
universities:
University;
and
several
and
Boston
churches,
seminaries and cemetaries owned by the Archdioces of Boston.
There are over twenty institutionally owned properties of at
least one acre in size here.
Although now a neighborhood of Boston, Allston- Brighton was
originally linked to Cambridge.
their
homes
on a 149 acre tract on the south side
Charles River in 1647.
as
"Little Cambridge."
across
The first residents located
of
the
Until 1807, the area was referred to
Its residents travelled
by
ferry
the Charles River where their church and the seat of
11
local government were located in what is now Harvard Square.
the
The union between Brighton and Cambridge continued into
century.
nineteenth
the residents presented the
In 1806,
inhabitants
General Court with a petition asking that " all
of
Cambridge on the south side of the Charles River may
24,
1807, "little Cambridge" became the independent town of
Brightorr named after Brighton,
England,
or,
have
as some
named for a "bright" or prize ox, an allusion to
suggested,
the
On February
as a distinct and separate town."
incorporated
be
Brighton
Cattle Market,, which,
established in
1775,
transformed the area from " a sleepy agricultural village to
1
a thriving commercial center".
The
commercial
by
Boston
neighborhood
of land,
the
the
activity generated between Allston-Brighton
and
to
the
Boston occurred in 1874
Cattle
Market.
owing
the
Geographically,
is connected to Boston only by a small
sliver
bordered by the Town of Brookline on one side
Charles River on the other.
among
to
to
annexation
and
There is growing sentiment
Allston-Brighton residents today that the
connection
Boston has not been to the their advantage and that
the
interests of the neighborhood are insufficiently represented
in
city politics.
A movement to secede has
been
gaining
support over the last several years.
The Cattle Market, which was established in Allston-Brighton
in
1775 and
several small scale butchering establishments,
1. Marchione, William P., The Bull In The Garden: A History
of Allston-Brighton, 1986, page 22.
12
provided much of the economic stability for the region.
fact,
from
one in seven Brighton families earned its
butchering.
In
1872,
consolidated in one location,
livelihood
slaughterhouses
were
the Brighton Abattoir,
which
parcel.
subject
a few hundred yards from the
erected
was
these
In
Although the establishment of the Abattoir provided Brighton
with a healthy monopoly in the industry,
activity' in
North
subject
to
uses
parcel
discouraged
have
development in the neighborhood.
residential
industrial
Brighton is said
the slaughterhouse
As a
result,
occupied much of the land surrounding
which in the 1800's was the location
starch factory. Adjacent to the subject property,
the
of
a
buildings
housed meat packing plants and fat rendering works. The odor
created
by the uses,
remains
into
particularly from tossing the
the Charles River,
made this
an
cattle
unsuitable
location for houses.
Tremendous
increases in the population,
which occurred
in
the eighteenth and nineteenth centuries eventually gave rise
to
residential
sites.
uses in and around these industrial
From
1880-1915,
the population of Brighton increased
from
6700
to 30,000 and this growth pattern continued well
into
the
twentieth century.
Even today,
as Boston in
general
witnessed a population decline in the period from 1970-1980,
the Allston-Brighton
neighborhood population increased 2.5%
to 65,264.
Allston-Brighton
was
also
13
known
for
its
practice
of
Hill in Brighton was the location of the annual
Agriculture
Fair
Brighton
England.
New
in
centers
horticulture
leading
the
of
when it was one
horticulture in the nineteenth century,
the
one of
and Cattle Show,
earliest
and
and
was
largest agricultural fairs in the nation.
POPULATION AND DEMOGRAPHICS
In
had
Brighton
1910,
predominately
an
and
neighborhood
class
upper-middle
stronghold..
Yankee
27,000
population of
a
many
Over the next twenty years,
number of middle class Irish and a smaller number
Jews and immigrant Italians arrived.
in
the
part,
Boston,
which
result of the changing political climate
in
John
Mayor
mayor,
of
was
The Yankee exodus
elected its first Irish
of
and a
these Yankees left Brighton for Newton and Wellesley,
large
a
"Honey Fitz" Fitzgerald, in 1910.
the
density
highest
of any
level
of
the
outer
city's
In this same year, a Boston Planning Board survey
suburbs.
of
the neighborhood had
with a population of 70,000,
By 1946,
neighborhoods
showed
with
Allston-Brighton
city's
the
in
development
for
available
land
the
smallest
amount.
Today,
Allston-Brighton
is
In 1980,
occupies approximately four square miles of land.
it
ranked
passing
densely
as the city's most
populous
even South Dorchester.
populated
neighborhood
14
that
a neighborhood of Boston
neighborhood,
It is also the
in
the
City
third
of
bymost
Boston
(approximately 27 persons per acre) .
of
described as having a stable population
Once
over
have changed so dramatically
demographics
Brighton's
families,
longer
the last several decades that this description is no
valid.
two-thirds
Approximately
11%
Another
over
residents
are
of
between the ages
residents
of
comprised
of the community's population
Only
65.
city-wide.
These
statistics
point to
family character of the neighborhood,
15
and
34.
20%
of
the
as compared to
households in Allston-Brighton are families,
46%
is
the
weakening
which just five years
earlier, in 1980 , had a family population of 28%.
Allston-Brighton
The
ethnic character of the
has
also changed in the last decade,
neighborhood
according to the 1980
Census
data and a Boston Redevelopment Authority
report
published in 1985.
research
period,(1970-1985)
During this
the proportion of white residents declined from 96% to
The
population
black
from 1%
increased
population from 2.9% to 4%.
increase
occured in the Asian population,
less
Approximately
than
one
percent
to
2%
and
over
which
increased
twelve
percent.
25% of Indochinese immigrants into this
live in Allston-Brighton,
the
The most significant
Hispanic
from
to
81%.
area
and large increases are predicted
to occur in the future.
The
racial
mix of the
Allston-Brighton
15
neighborhood
is
different
quite
that of Boston.
There is
than
a
higher
percentage
of whites and Asians and a lower
percentage
blacks
from
in the city as a whole (81% white in
of
Brighton
versus 62% citywide, and 12% asian versus 5% citywide).
INCOME AND EMPLOYMENT
According
to
the 1980 Census,
53% of
households
the
in
Allston-Brighton earn less than $15,000 per year, versus 57%
percent citywide.
The large number of students that reside
in Brighton, with incomes that reflect their student status,
may
A detailed breakdown of
make this figure unrealistic.
opposed
the income levels for Allston-Brighton families (as
to
that
non-family householder) illustrates an income
is
$5,000;
similar to Boston as a whole:
17%
than
10% earn less
earn between $5,000 and $9,999.;
$15,000 and $19,999;
structure
between
17%
7.6%
17% between $25,000 and $34,999;
between $35,000 and $49,999 and 3% earn over $50,000.
Unemployment
in Allston-Brighton neighborhood was
slightly
lower than in Boston at the time of the 1980 Census (5%
6%).
34%
of the employed people living in this neighborhood
hold managerial or professional positions.
has
vs.
Allston-Brighton
a higher proportion of college educated residents
than
Boston in general.
The neighborhood economy is largely based in
services,
educational services,
trade,
and manufacturing.
health
While
there has been some shift from a manufacturing to a servicebased economy over this last decade,
16
a strong manufacturing
base
still
remains.
During the 1970's while New
England
experienced net losses in manufacturing employment,
several
large
manufacturing firms in Allston-Brighton
their
position.
These industries,
strengthened
primarily
rubber
and
plastics, printing and publishing, electrical and automotive
equipment,
account
for twenty percent of the employment in
Allston-Brighton.
It is generally recognized that Allston-Brighton is a
location
for industry because of its proximity to rail
highway transportation,
and
the suburbs,
However,
there
force.
is little industrial space available in the
neighborhood and a movement on the part of
residents
and
Boston and Cambridge,
the availability of a skilled and educated work
Allston-Brighton
to curtail the use of land for light industry
manufacturing
has
limited
the
expansion
industries and the growth of new ones.
future
prime
employment
growth
in
the
of
or
existing
This suggests
neighborhood
that
may
be
is a densely populated
and
constrained.
In
summary,
Allston-Brighton
rapidly changing neighborhood.
Its population is primarily
white, with a growing segment of Asians.
Many students from
the surrounding educational institutions reside in
Brighton
exceeds
and
the number of non-family
the number of traditional
households
households.
Allstongreatly
Throughout
its history, the neighborhood has exhibited little influence
over the City of Boston in decisions relating to development
17
and planning, and, as a result, has experienced loss of open
space, traffic congestion, noise pollution and a shortage of
off-street parking.
The struggle to confine development has
today become a major objective of the community.
18
CHAPTER TWO
SITE DESCRIPTION
-------------------------------------------------------A description of the site and the site context are presented
in
shape
opportunities and constraints and to
the
illuminate
to
This analysis was conducted in order
this Chapter.
the program.
The
subject
(Figs.
Brighton.
in
is located
parcel
1,2).
It
northwestern
consists
separate,
two
of
of
part
adjacent parcels that are roughly divided by Electric Avenue
( Figure 3).
Parcel A falls to the south of the street and
131,200
square
consists
of
contains
58,480 square feet.
Parcel
and
land
feet of
There is a total of
B
191,000
square feet or 4.4 acres of land.
The
site is effectively level,
+20
feet.
the
owner
storage
with an elevation of
about
This is not the natural condition of site,
for
accomodate
the
The high point of
the
has leveled most of his land to
of construction equipment.
area is Faneuil Street, from which the ground slopes down to
Electric
Avenue
(Figure
4).
In
southernmost portion of Parcel A,
a
fifteen
order
to
level
the
the owner has constructed
foot high retaining wall along the rear part
of
the site ( Figure 5).
The site is bounded on its western and southern sides by one
and
two
family dwellings (Figure
19
6).
The
eastern
side
light
abutts
Street.
Goodenough
The northern edge is bounded along its
the
for
and
storage
repair
which
Penn
the
Parcel A is presently
Central Commuter Railroad (Figure 5).
used
atop
of
Turnpike and a line
Massachusetts
the
runs
from
accessed
are
that
a twenty-three foot high embankment
by
length
uses
industrial
construction
the
of
Parcel B is the location of a truck
equipment on the site.
body manufacturing company.
area
and
composed. of
privately owned
family
There
lived
turnover
little
neighborhood,
particular
Brighton
residences and are generally
been
has
neighborhood
built
houses
woodframe
The houses are primarily single and
between 1910 and 1930.
two
character
surrounding the site is residential in
The
in
maintained.
well
ownership
this
in
Allston-
which is unusual in the
had
where only 37% of the residents
time
in the neighborhood more than five years at the
of the 1980 Census ( this compares to 53% citywide).
the
The property owners in this neighborhood are older than
population
Boston.
in
There
general,
is
which
is among
the
youngest
in
low
a 250 unit Boston Housing Authority
income project a few blocks away which seems to have
little
homes.
These
effect
on
the
quality
and
care
of
the
residences are fully occupied and well maintained.
In fact,
it is the industrial uses on the proposed site that have the
worst
impact
homes
closest
on the houses in the
to
neighborhood,
the site are in the
20
poorest
and
the
condition.
from
Across
the BHA low income project is
Park,
McKinney
Boston.
which is owned and poorly maintained by the City of
For a number of reasons the City has been unable to maintain
or restore the parks scattered away from the downtown Boston
These parks are fast becoming derelict and adversely
area.
McKinney Park represents
impacting the adjacent properties.
an opportunity for a developer to make a contribution to the
neighborhood
and enhance the marketability of a project
in
this location.
RETAIL AND COMMERCIAL
there
Although
many
are
House
located a short distance away on
within
Located
one quarter of a
of Pancakes;
Martinetti's
MacDonald's;
mile
is
located to the west of
intersection
of
Arlington
grocery store,
Caldor's,
and Faneuil
Stop and Shop,
both 1.4 miles away.
the
Motel;
neighborhood
A
Streets.
the
at
site
A
and a large discount
are located a mile east.
are easily accessible.
International
are:
and a Radio Shack.
Liquors;
Drive.
Storrow
The Charles River
area
retail
site,
are no retail stores adjacent to the
major
store,
Regional retail centers
Arsenal Mall and Watertown Mall are
Harvard Square is three miles from the
site and Newton Corner is 1.5 miles to the west.
There is very little commercial activity near the site.
majority
of
the commercial office space for the region
The
is
a fifteen minute drive from the
located in downtown Boston,
site.
21
INDUSTRIAL
subject parcel is currently zoned for light
The
warehouses,
and the lots adjacent to the site contain
uses
industrial
and parking
distribution and auto repair facilities,
Beacon Street is mostly industrial along its
North
lots.
length,
although there are signs that residential uses are replacing
industrial
ones
here.
A fifty-six unit rental
complex -is
currently under construction
Street
other residential projects are planned for
and
on
apartment
North
Beacon
the
area.
TRAFFIC PATTERNS
One
of
the
great advantages of this
site
is
its
close
proximity to one of the major highways in the City,
Storrow
Drive.
This
Harvard
Square,
downtown Boston and Logan airport.
four lane divided road leads east to
highway joins the Massachusetts Turnpike,
To the west the
the largest east-
west highway in the state.
Traffic
congestion is a major problem in Boston as well
in
Allston-Brighton
the
neighborhood.
According
Kirwin of the Metropolitan District Commission,
that
are
controls Storrow Drive,
moderate.
follows:
The
Ken
to
the
Agency
traffic counts near the
exact twenty-four hour counts
as
site
are
as
Storrow Drive from Arsenal Road to Beacon Street,
7035 cars;
Nonantum Road, 12,372 cars.
The
local streets that feed from the site to Storrow
are
Parsons
Street,
Good Enough Street and
22
North
Drive
Beacon
Residents
Street.
Street,
which
preferred
exit
Parsons
use
frequently
is heavily travelled during commuter
Street
Good Enough
Brighton
of
is
less congested and
make
would
from the site at rush hour.
hours.
the
these
All of
roads are in good repair.
PUBLIC TRANSPORTATION
The
64 MBTA bus stops at the corner of Good
number
North Beacon Street, at the edge of the site.
This bus will
where
bring a traveler to 'Central Square in Cambridge,
MBTA
Red
connects
line
to
all
points
Enough
in
the
the
public
transportation system.
EXISTING SERVICES
There are storm drains,
sewer, water, gas, fire hydrant and
power lines along Good Enough and Parsons Streets.
overhead
Electric Avenue contains storm drains,
fire hydrants, sewer
for half of its length,
water and gas lines.
pipes,
and ,
running
There is a major storm drain eight feet in diameter
across
the
site from the south to the north and
distance down Electric Avenue.
some
for
A fifteen foot easement that
restricts building over this storm drain exists and any work
over
the
location of the drain requires a
special
permit
from the Boston Water and Sewer Department.
OTHER SERVICES
Trash removal would be contracted to a private firm. B.F.I.,
which is one of Boston's largest private trash removal firms
located on Market Street,
approximately one half mile
23
from
and
the site. The closest Boston Fire Department station, Engine
#41 is located in Union Square, a distance of one mile.
OPPORTUNITIES AND CONSTRAINTS
A
this
set of constraints and opportunities are present at
are perhaps unique to
and
location
Allston-Brighton.
An
unlike
the
to design a residential community,
opportunity
local competition, exists for the developer of this site.
URBAN DESIGN
Almost
The site is unusual because it is large (4.4 acres).
proposed
and
new
all
residential
in
projects
Allston-
Brighton are infill developments. New buildings are squeezed
onto
sites among existing buildings and the
measure,
large
in
is,
existing neighborhood.
value
project
the
of
determined by the quality
Infill developments often result in
a shortage of parking and a street frontage that consists of
a
wall and a garage door of a ground
blank
parking
level
garage.
The
constricted
in
large
and
decisions
streets,
and
a
rich context of
existing
parcel offers no such shortcuts.
subject
must
an
make
job a little easier because one is designing
architect's
building
sites common in Allston-Brighton
isolated
about
that
an
urban design,
front and back doors,
architect
i.e.
the
massing,
The
buildings.
The site
must
so
is
first
make
relationship
to
site lines, etc.,
also establish a strong design idea to carry
24
a
the
project.
material
colors, building
The choice of a theme or style,
and
planting,
considered.
The
need
f or
for
will
creativity
carefully
be
must
example,
and
require
challenge a good architect.
The
relatively
greater
unlike
large
of
number
size
of the site
suggests
units can be placed in
a
in
the market analysis
all
,
As will be
other
proposed
condominium projects'in Allston-Brighton of comparable
are
on
small
lots
twenty-four stories
subject
with proposed buildings
in height.
a
not
setting
that of the surrounding neighborhood.
illustrated
that
from
size
ten
to
The ample lot size of
property also allows for adequate parking,
the
thereby
eliminating what is very often the most controversial
issue
in obtaining approvals.
ELECTRIC AVENUE
The
current location of Electric Avenue,
which bisects the
development into two odd shaped lots,
proposed
significant
street
to
street
and
site
obtain
constraint.
One may
a more efficient lot,
accommodate
the design
to
presents
either
move
a
this
or
maintain
the
the
existing
lot
Avenue
now
shapes.
Moving
the street is sensible because Electric
curves
across the site.
A straighter street running
from
Parsons to Good Enough Street would allow the architect more
options
for
the design and free up square footage for
the
project. According to the Engineering Department of the City
25
of Boston, it is possible to move Electric Avenue, however a
new
must
street
conform to strict
A
codes.
city
good
location for the street might be against the embankment that
carries the Penn Central Railroad.
This location would make
the street shorter and create one large lot.
A major problem in moving a street is the relocation of
utility lines,
the
which is very expensive. The developer would
have legal responsibility for the correct placement of these
lines
and
utility
must provide easements over areas where
lines remain.
Such easements' could constrain the layout of
the site as much as the present location of Electric Avenue.
LOT SHAPE
If
location,
Electric Avenue were to remain in its present
the site would contain two odd shaped lots.
The lot to the
north of Electric Avenue is roughly pie shaped,
but is deep
enough to accept standard shaped residential units along its
length.
deep,
The
lot to the south of Electric Avenue
stretching
is
very
into the middle of the block and is dumb-
bell shaped with a constricted middle section.
The
design
is to make the best use of the deep section of
the
site, particularly the dog-leg at the southwest corner.
One
problem
option
to lay out a suburban-type
is
residential
housing
pattern with buildings irregularly scattered around the site
connected
however,
by
at
neighborhood
an interior access road.
This
odds with that of the surrounding
where
front the
houses
26
major
pattern
is,
residential
streets
with
front doors,
traditional
hedges and streets are lined with
trees.
pattern
contextual
of
and
one that takes
pattern,
housing
Another
reuses
the
should
be
neighborhood,
the
considered. Blocks of housing with frontage on both sides of
existing housing pattern.
the
reinforce
street
would
Back doors
would
and front doors facing this
Avenue
Electric
face onto on-grade parking in the rear of the building.
The
does
not
lining the 'street and the parking behind
housing
solve the problem of the extra-deep lot.
site
to its present flat condition further complicates
the
wall
now
story
ten
A
matter.
exists
The grading of the
to, fifteen foot high retaining
three
at the rear of the site and any normal two to
would have limited views and
housing
would
receive
minimal light.
The placement of a mid-rise building at the rear of the site
The narrowness of this portion
would solve these problems.
of the site precludes the building of low-rise units here. A
story building, deep within the center of the
three or four
city
block,
would
fit
more
comfortably
and
would
visually impact the existing homes around the site.
for- this
building
retaining
wall.
could be placed on
grade
not
Parking
against
A new-ground level could be created
the
atop
the garage close to the natural grade. Any shadows resulting
from
this mid-rise structure would fall exclusively on
proposed site.
27
the
The
a
placement of low buildings along Electric Avenue and
would
building atop a garage in the rear of the site
short
the constraints of the site geometry and
resolve
of the site is also inhibited by an eight
Development
foot
of
The City
sewer running the length of the parcel.
storm
contours.
Boston has an easement over the entire length of this active
will
and
sewer
representative
A
easement.
parking
allow
atop
from
be
over
the
Department
of
located
the
however, indicated that a parking
Engineering for theCity,
garage
to
to
the easement might be acceptable if access
the sewer were assurred.
LOCATION
lakes,
rivers,
vistas,
There are no
is inward facing.
although large,
The site,
grand streets or monuments to give
identity to the project and the developer is forced to
with
the
work
An identity for
a limited amount of natural amenity.
project must be established to overcome the absence
of
character or grace.
The
location along Electric Avenue is unusual in that it is
to
marketed
respect
edge of
and Cambridge.
Watertown
deeper
the
on
located
in
to
the
City,
adjacent
to
Newton,
The units could conceivably
be
people who would not normally consider a
unit
well-located
with
Brighton.
site is also
The
access to major
transportation
networks,
and
could interest buyers working some distance from Brighton.
28
SUMMARY
The site although it is large by Allston-Brighton standards
shaped,
oddly
is
Avenue,
parcels
and crossed by a wide sewer easement.
by
Electric
The existing
of one and two family homes limits the size of
neighborhood
buildings
the
into two
divided
a developer might wish to place on
the
site.
section demonstrated how a design can address these
This
constraints and produce a satisfactory project. The result is
a
low-rise
parking,
to
development
low density,
that
is
characterized
niche
and
ample
and open space. These benefits serve
make the project acceptable to the community,
market
by
buyers
attract
from
adjacent
markets in Cambridge, Watertown, and Newton.
29
create a
housing
W
0
FIG.1, Map of Boston Brighton indicated by tone
31
w
WW
ppo-
io
FIG.3, Proposed Site
I
w
FIG.4, Contour Plan
5'intervals
:3
0
Faneuil Street
Adjacent Buildings
Electric Avenue
Penn Central R.R.
Massachusetts
Turnpike
Leo M. Birmingham Highway
Ce RE
-
S----.
-
Soldiers Field Ro
wJ
FIG.6, Neighborhood Features
R
Site
*
*T
*-q
e*
*
-5KINSTR0CTS
ZOIN
R-
'A+,
R-.56
S-5
-N
-ISTICT
FIG7,
ZRGHONina
--- ----
taa
--
-
----
-1Oo
TOW
peo
Bus Stop
-
Heavy traf f ic
'
Moderate traffic
Light traffic
Bus route
-m
m
-
45se'wSW
....
FIG.8, Auto and Bus Circulation
Converse Street, looking toward site.
McKinney Park, looking south.
FIG.9
Cresthill Road, looking west.
Faneuil Street and the B.H.A. Faneuil Development.
.
4)
to
0
0
4J
4
(41
V4
14
View into site at westernmost corner.
FIG.11
Entrance to project, corner of Parsons and Electric.
101
."r"Mrnwes
.s- -
g
Good Enough Street, looking north to Mass Pike, Good Enough Street, and warehouse east of
Intersection of Good Enough & Faneull Streets.
FIG. 12
Faneuil Street, looking west..
CHAPTER THREE
POLITICAL AND REGULATORY FRAMEWORK
While
the
Chapter
the
market
described
in
the
following
indicates a strong demand for residential units
in
Allston-Brighton neighborhood and encourages investment
an analysis of the political and regulatory
in the project,
climate
is
sobering.
regulatory
the
analysis
In
this Chapter the
political
and
environment will be described with emphasis upon
extent
to
which
the
community
and
the
Boston
Redevelopment Authority (BRA) will influence the project.
description of the recent attempts by residents of
Brighton
to
Allston-
establish a moratorium on development will
presented.
The
"inclusionary"
impact
zoning
of
Mayor
policy
or
A
Flynn's
be
proposed
affordable
housing
requirement will also be addressed.
Assessing the political environment for development of this
site
means
understanding
the
extent
to
the
which
neighborhood will become active in the approval process and
evaluating
the
role
of
the
current
administration
in
residential development.
The
subject
Industrial
parcel
District,
is
now located in
an
MI
or
Light
according to the Zoning Ordinance
of
the City of Boston, amended to April 30,1985. Permitted uses
in MI districts include most light industrial uses by right,
and multi-family dwellings and group care residences only if
42
a
use
conditional
use
is
permit must demonstrate that the
for
suitable
proposed
a
have
not
will
its location and
a
for
An applicant
conditional use permit is granted.
detrimental effect upon the neighborhood.
The
development
dimensional regulations that will control
of condominiums and town houses on the site are:
1
Floor Area Ratio:
20 ft. (minimum depth)
Front Yard:
Side Yards: 5 feet
Parking: .9 spaces per dwelling unit.
restrictions
from any of these bulk and dimensional
Relief
will require a variance.
For this particular site, the developer will initially apply
a
for
building
It
Department.
of
it
hearing
Appeal
permit
use
recommendation
ninety days.
once
the
Services
Inspectional
and
the
The BRA
must
requirement
fowarded to the BRA for review.
application
a
at
will be almost certainly be denied because
conditional
the
deliver
permit
to the Board
of
within
Appeal
The Board of Appeal will hold a public hearing
has
received the BRA report
on the proposal.
and
hold
After the hearing,
will either approve or deny the
a
public
the Board of
project.
The
BRA
estimates this process will take approximately six months.
Many
developers meet with community groups prior
before the BRA.
to
going
In Allston-Brighton, there are at least six
43
The Allston-Brighton Improvement Association;
groups:
such
Brighton
Allston-Brighton Community Beautification Council;
Society;
Historical
Organization
Tenants
Allston
Civic
Association;
Faneuil
and the
Brighton-Washington
Heights
Meeting with these groups will enable
Citizen Association.
the
developer to assess the opposition and support for
the
change
and
project
the
if
program
gain
to
necessary
approval-.
PLANNING AND
THE RE-ZONING OF ALLSTON-BRIGHTON:INTERIM
OVERLAY DISTRICT PROPOSAL
It
be
is not likely that the current zoning standards will
the
because
of
Planning
and
Overlay
of
establishment
impending
District
Interim
an
the
for
(IPOD)
site
this
the City's review of a proposal for
in
applied
Allston-
Brighton neighborhood.
residents
Allston-Brighton
Boston's
failure
that
regulations
to
or
enforce
has
acknowledged that
have
fitting
adopt
to
contributed
it
zoning
physical
the
deterioration and extreme density of their neighborhood.
1985
alone,
developers
variances
seventy-one
of land and buildings in
were
is
granted
In
to
Allston-Brighton. (This
represents a 60% approval rate).
The
that
1986,
and
residents have called for major changes and it appears
the
Flynn administration has responded.
Mayor
In
Flynn appointed the Allston-Brighton
Zoning Advisory Committee (PZAC),
44
which will
May
of
Planning
work
in
the IPOD.
establish
year
period
during
An IPOD will legally establish a
two
planning
and
which
a
comprehensive
rezoning of Allston-Brighton will occur.
The PZAC will make
area
recommendations to the City as to how it believes each
should
to
(BRA)
the Boston Redevelopment Authority
with
concert
be rezoned and will review all development proposals
year
two
to the Building Department during this
submitted
period.
An
is created' by way of an amendment to
IPOD
appoint
recent
The
Ordinance.
Zoning
the
Mayor
move on the part of the
PZAC is a clear indication that he supports
the
that
the
amendment
will
be
approved
a
It is
collaborative process for rezoning Allston-Brighton.
expected
to
shortly,
probably before the end of 1986.
The PZAC must draft the zoning amendment.
At its
initial
meetings, the group acknowledged their major planning issues
as density and height control, restriction of commercial and
industrial
uses,
adequate parking and the preservation
of
open space.
The
process
IPOD
will result in a project review
the
by
BRA, the PZAC and final approval by the Board of Appeal.
BRA
The
and the PZAC will recommend whether or not the proposal
is consistent with planning goals.
conduct
a
public
hearing on the
The Board of Appeal will
matter
and
then
vote,
retaining the ultimate authority in the approval process.
45
The Board of Appeal is a five member board appointed by the
administration,
2000
Commonwealth
for
Avenue
of
story
sixteen
a
example,
with insufficient parking,
was vehemently opposed
by the residents but nevertheless approved.
eighty-n-ine
pressure
The development
Allston-Brighton community.
the
White
pro-development
Board acted independently of
the
from
building
previous,
the
Under
Mayor.
The Wingate, an
Avenue
unit apartment building on Commonwealth
was also the subject of much controversy over density issues.
It
has been suggested
community
that the Allston-Brighton
lacks power in developement matters to a greater extent than
other Boston neighborhoods. Brian McLaughlin, City Councilor
for
Allston-Brighton,
district
unified
past
has made it difficult to mobilize a
defense.
of
the
coherent
and
in
the
believes that the diversity
The Allston-Brighton residents,
mostly students and blue collar workers,
sophistication
Contrast
about
Back
the
of
predominance
either
lack
not
care.
development matters or do
Bay
neighborhood,
lawyers,
architects,
its
with
which,
other
and
professionals, has been relatively successful in influencing
the development process.
held
at
Also, Board of Appeal hearings are
City Hall in downtown Boston during working
hours
and many Allston-Brighton residents are unable to attend.
Development
under Mayor Flynn's administration thus far has
Approval for 175 units on a 1.5
continued at a rapid pace.
acre
site
in
Union Square,
46
one
of
the
most
congested
much
despite
foward,
residents
because
is
Newton-Brighton border
the
on
site
acre
A 250 unit development on
developer.
private
of
potential
traffic
a
fourteen
a
going
also
Brighton
of
part
the
on
protest
to
recently given
was
Allston-Brighton,
in
locations
congestion.
In
six to eight hundred units of housing will be coming
total,
on line in the next several months, adding to the density of
many already severely congested areas.
push
density
height,
will be the result of the rezoning
parking
quickly,
through
projects
that greater restrictions on
anticipating
and
to
attempting
been
Many developers have
under
the
IPOD.
has had some success in getting developers to
The community
scale
Lincoln
ten
at
responded
adequate
project
on
in Brighton reduced the number of units
by
their
back
Street
projects.
A developer of a
the request of the Allston
Civic
Association
to concerns over traffic and parking by providing
and
space
reasonable
The
paths.
access
recently agreed to reopen public hearings on an
unit
and
City
eighty-nine
apartment complex because angry residents opposed
the
over-populate
the
project
on
grounds that it
the
would
already densely developed Commonwealth neighborhood.
The facility with which development has occurred in the past
may
be
about
sophisticated
received
the
to
end.
The
community
is
becoming
more
with respect to development proposals and has
attention of City Hall.
47
Whether or
not
the
creation
zoning
of an IPOD will result in more restrictive
In any event, this particular proposal
is to be determined.
The change of use requires a
is bound to attract attention.
public hearing under the existing zoning and the addition of
significant
of housing will attract a
units
approximately
amount of neighborhood interest.
To further complicate matters,
of
Allston-Brighton's
the site is located in
one
neighborhoods.
most tidy and stable
Any threat to that stability is sure to create resistance to
the project.
light
The problem here is not the change of use from
building
to
It
placed on this site.
be
mid-rise
the
to
to residential or even
industrial
the
simply
is
prospect of disturbing this quiet oasis in any way at all.
this site chooses to bring the proposal
If the developer of
he or she must be prepared for many rounds
before the City,
of
probably
the
during
discussion
Exactions
be altered.
neighborhood
which the proposed
plan
site
will
improving
in the form of
park or other public spaces may
also
be
in
the
required.
AFFORDABLE HOUSING REQUIREMENT
Because
the
approval
and
BRA
the
process,
developers
on
affordability.
affordable
Mayor retain
City
is
housing
Flynn
units
able
powers
to
negotiate
and
improvements
issues of public
Mayor
broad
is
committed
to
and is attempting to
48
with
housing
providing
create
an
--4
M.I.T. CENTER FOR REAL ESTATE DEVELOPMENT
*
ACTIVITIES BUDGET FOR FY 1986-87
REVENUE:
1
2
3
4
5
6
7
Membership Fees
Sponsored Research
Named Fellowships
Sponsored Conferences
Summer PDC Fees
CRED Publications Sales
Royalties
$621,800
160,000
14,000
45,000
180,000
5,000
75,000
$1,100,800
Total Revenue:
EXPENSES:
Salaries
Administrative Expense
427,882
L4
L5
Members' December Meeting
Members' June Meeting
Summer PDC's
Spring Lecture Series
IAP Courses
Advisory Committee Meeting
20,000
35,000
123,500
15,000
13,000
2,500
16
17
Sponsored Research
CRED Funded Research
120,000
135,500
L8
L9
Named Fellowships
CRED Fellowships
14,000
53,650
20
21
22
23
Academic Support
Endowment Fundraising
Newsletters
Gifts/Honoraria
69,000
8
9
10
L1
L2
3
134,000
10,000
28,500
7,000
1,208,532
Total Expenses:
DEFICIT
*
($
107,732)
Does not include academic or rennovation accounts (see attached budgets)
or interest expense of approximately $30,000.
V
zoning
inclusionary
bind
units,
their
Such a zoning
could cost the developer up to one million dollars
provide
affordable units in exchange for project
is'in spite of the fact that the
amendment
grounds
in
Developers have demonstrated a willingness to
lost revenue.
This
legally
applied to the program designed for this -particular
policy
site
will
at below market rates.
ten percent,
usually
which
offer a certain percentage of
to
developers
amendment,
approval.
zoning
inclusionary
not been adopted and is being challenged
on
that such a requirement is not within the scope
of
has
the powers granted under the Zoning Enabling Act.
The
political and regulatory
development
must
disturbing.
Obtaining
occur
is
environment within which this
extremely
complicated
project approval is
a
protracted
process and one during which the market can change.
been
and
It has
estimated that the approval process under the IPOD for
a project of this nature could take up to twelve months
require
an investment for schematics and other expenses
the vicinity of $50,000-$100,000.
the
and
approvals
will
be obtained,
in
There is no guarantee that
and in
this
particular
instance, the owner may not see the same offers for his land
that
he
has
received
to
date.
These
risks
should
be
considered.
In
to
summary,
identify
a
developer
of
the
site
the individuals and community groups
who
likely to become involved in the approval process to
49
begin
should
are
assess
their concerns.
prepared,
from
the developer should work with the City Councilor
Allston-Brighton to arrange formal meetings with local
community
should
Once schematics and a scale model have been
the
groups.
Only after this liason has
developer
approach the City
for
meet with the BRA to begin the approval process.
50
been
formed
permits
and
CHAPTER FOUR
THE RESIDENTIAL HOUSING MARKET
-------------------------------------------------------site and its context suggest a residential program that
The
is
given to the
emphasis
demand
the
Chapter,
with
of the market for housing is explored
characteristics
particular
In this
to this location.
appropriate
housing
for
in
Allston-Brighton and the characteristics of the existing and
A. survey of unit prices, unit mix and unit
proposed supply.
neighborhood was conducted and
the
in
sizes
the
results
presented here in order to establish a pricing strategy
for
the proposed project.
The
Chapter begins
for
housing
in the Boston area and the City's
reference
through
to three projects and
demand
efforts
to
analyzed
The Allston-Brighton market is
supply.
increase
with
with a discussion of the strong
information
bankers, developers,
derived from discussions with brokers,
BRA staff members and an examination of sales data.
THE RESIDENTIAL HOUSING MARKET IN BOSTON
In
the housing market in
many respects,
Allston-Brighton
has undergone the same transformation that has occurred on a
The
city-wide
basis.
increased
steadily
while
factors
,
population of Boston since 1980
reversing thirty years
the unemployment rate has been
have
led
to
a
healthy
dropping.
demand
for
of
has
decline,
These
two
residential
property and record appreciation rates of housing values and
51
rents.
A
population
confluence of factors are contributing to the
From 1970-1980, there was a substantial
revival in Boston.
increase in the City's young adult population and this group
favored the more centrally located neighborhoods.
of
outflow
1980
ceased
families
their
and
blue collar workers
The 1970-
neighborhood
of
improvement
and
"
empty nesters
ambiance,
lower property taxes and
enhancement
of
place
have made~Boston an exceedingly attractive
amenities
"
Improved
have been leaving the suburbs to move to the City.
racial
The
conditions.
housing
birthrate has been rising since 1977,
the
and
the stabilization of industrial jobs
with
to live.
The
Redevelopment
Boston
Authority
population at 604,000,
City's
1985
since
1980.
The
of
population
(BRA)
estimates
the
41,000
an increase of
Allston- Brighton
has
increased during this same period by approximately 34%, from
65,000 to almost 88,000 people.
expected
The
The population of Boston is
to grow to 680,000 by 1995,
BRA
households
also
and
of
an increase
projects an 18% increase in
number
the
a reduction by 1995 in household size
13%.
of
from
2.4 to 2.3 persons per household.
in
the
transformation
of
Employment
concentration
Boston area has
its
economic
been
base.
in such growth industries as
favored
A
by
the
relative
communications,
money management, higher education and medicine has resulted
52
in
an unemployment rate for Boston of 4%,
of
the nation.
lowest
well below that
the
The Commonwealth of Massachusetts has
unemployment rate among the ten
industrial
largest
Approximately ten thousand downtown jobs are being
states.
created each year and the demand for housing keeps growing.
There
has
throughout
been
a
surge
in
of
construction
housing
Boston
the Commonwealth and particularly in the
metropolitan area in response to these statistics and to the
rapid
With the median price of
appreciation.'in values.
a
single family house at $150,000, and construction costs well
developers have rushed to build here in the
below $100,000,
last several years.
in
Massachusetts
has
production
illustrates
In
Boston
the
~ Forecasts of 50,000 new housing
units
in
which
per
year
for
following a decade
1986,
averaged
about
extent
of
20,000
the
units
building
activity.
in the five years since 1980 there has
been
an
annual average addition of 1,700 new dwelling units, made up
equally of new net units and conversions.
with an increase to 2000 units.
up in 1985,
employment
population,
rates,
This pace picked
Mayor
growth
projections,
In response to
and
vacancy
Flynn has committed to adding 3,400 units
in
1986.
In
spite
of
the
steady
construction
vacancies have continued to decline.
vacant
and
available
Boston's housing,
As of
occupancy made up
for
housing
1985,
only
according to the BRA-NDEA 1985
53
housing
activity,
4%
of
Household
Survey,
as compared to 7.5% in 1980.
housing
production
needed.
An
in
additional
The current rates of
Boston represent half
of
would
four thousand units per year
meet estimated demand and 1000
is
what
and
units would replace old
obsolescent housing.
A
of residential building permits issued
review
first eight months of 1985,
over
1.5
years)
approach
56%,
for
the
(housing starts to be completed
indicates
that
annual
2000 units in 1985 and 1986.
production
will
Reuse accounts
for
new construction for 27% and vacant rehabs and illegal
conversions for 17% of these new units. Approximately 800 of
these
units
are
planned
for
the
Allston-Brighton
neighborhood.
THE MARKET FOR HOUSING IN ALLSTON-BRIGHTON
The
market
unique
for
residential property in Brighton
characteristics.
Allston-Brighton
has
has
a
its
higher
proportion of renters than most Boston neighborhoods (84% vs
68%).
The
typical condominium buyer is
married and without children,
young,
single
professionally employed,
buying a first home or moving to Boston .
either
of property in downtown Boston and Cambridge
cost
or
and
The high
a
sends
purchaser to Brighton in search of less expensive units.
In
the
June, 1986, issue of Banker and
Tradesman,
which
listed twenty-eight condominium closing in Allston-Brighton,
sales
data
revealed that the average size of
units
purchasedwas 585 square feet,
54
and the
one
bedroom
average
two
bedroom unit was 894 square feet. The average price for both
unit
Price appreciation is
sizes was $154 per square foot.
sample
in the following chart showing a random
illustrated
of Brighton condominium closings spaced twelve months apart.
CONDO SALES; JUNE 1985-JtNE 1986
------------------------------------------------------% change
1986
1985
S.F.
BR
26 Waver'ly Street
2
780
$111.12
$148.71
+34
290 Corey Road
1
685
$122.62
$192.70
+57
27 Lake Shore Rd
2
824
$133.49 $172.33
+29
The
can
characteristics
market
review of three condominium developments
has been designed with a market in
REDSTONE
unit
site
in
is
many
a densely built-up
which
is
surrounding
Street,
located on Allston
project is
one and two bedroom units
seventy,
Commonwealth,
has
site.
to Commonwealth Avenue.
block parallel
The
and the absorption
mind,
COURT
This eighty
of
Each project
each provide valuable information to
rate and sales data for
the developer of this
the market area:
and The Courtyard.
The Vicomte,
Redstone Court,
in
a
in
suggested
also be
one
The project consists
townhouses.
and ten
area of
called
Brighton
largely populated with students and
homes
which
are
in
a
somewhat
dilapidated condition.
The
project
offers
deeded
55
parking
located
under
the
a central couryard
building,
and concierge services.
room
features such as fireplaces,
a swimming pool an exercise
,
Units are priced according to
balconies,
or greenhouses and
are
is a wide range of unit prices which
there
summarized
below.
units
per
started
in
The pace has recently slowed to one to
week.
but
this
may
be
due
to
a
and
mid-April
been selling at the rate of two to three
have
week,
Redstone Court
for
Pre-sales
seasonal
units
two
per
decline.
THE VICOMTE
The
Vicomte
is
-a five
story brick building
block from Redstone Court.
but
pre-sales
one
Construction has not yet begun,
The
have.
located
Vicomte
abutts
an
building which houses the Allston Squash Club.
industrial
Unit buyers
are given a three year membership to the Club.
There
one bedroom and sixteen two bedroom
are forty
units
in this building and parking in a ground level garage.
The
project offers an adequate parking ratio of 1.29 spaces
per
unit,
a
concierge
lap pool,
service.
whirlpool and exercise room and
sauna,
Twelve units have been sold from
May,
1986, when pre-sales were initiated, to August, 1986.
THE COURTYARD
This
eighty-four
another
Charlestown,
experiencing
unit condominium project
a
neighborhood
dramatic increase in
56
of
is
Boston
property
located
in
which
is
values
and
story
The
four
the four
The site is tight and irregular,
housing starts.
garage.
brick buildings sit atop a two level parking
project consists of twenty-four one bedroom and twentytwo
a
with
each
units,
bedroom
space.
deeded
Additional spaces are each sold for $17,000.
The
commencement
program
entirely
was
Courtyard
of
contains
construction.
none
of the amenities of the
projects
described' here,
equipped
units.
washer/dryer,
Each
but had in
the
that
the
other
two
notable
is
It
to
prior
pre-sold
more
well-
microwave
oven,
general
unit' contains
a
balcony, and fireplace. There are also several
different unit configurations from which to choose.
PROJECT COMPARABLES
BR
Redstone Court
The
The
Vicomte
Courtyard
UNIT SIZE
$PSF
$TOTAL
1000
162
162
2
1000-1250
174-210
173-275
1
1000
145-210
145-210
2
1000-1600
144-210
210-255
630
198
125
2
950
238
225
The Courtyard has the smallest and most completely
units but few other amenities.
to
8-12
1
1
57
4
presold
equipped
This pricing strategy seems
have worked for this project sold quickly and at a
per square foot price.
ABS.
high
THE COMPETITION
the next three years several proposed projects will be
Over
brought to the market in Brighton that will constitute local
These developments range in
competition for this proposal.
and
are
contain 175 condominiums
and
eight to three hundred and forty units
from
size
illustrated in Exhibit 13.
15 NORTH BEACON STREET
This
ten story building will
sits
on a 1.5 acre .site in one of Brighton's more congested
The MBTA rapid transit Green Line passes
neighborhoods.
in
front of the site.
1360 COMMONWEALTH AVENUE
sixty
This
Street
in
proposal
The
neighborhood.
story
project is similar to
unit
building
on
that
it is
located
the
Beacon
North
in
congested
a
condominiums will be located in a seven
a busy street
lined
with
many
older
apartment buildings.
1065 COMMONWEALTH AVENUE
There is a
of
site
proposal for two twenty-four story towers on the
Oste Chevrolet,
proper city line.
and
It
which is adjacent to
also
Boston
The towers will contain 340 condominiums
the site is again located in a congested
is
the
doubtful that the proposal
will
neighborhood.
be
accepted
unless the height of the buildings is substantially reduced.
58
FALLOW HILL
There
a hilltop monastery located near
is
Brookline-
border that will be converted to a housing complex
Brighton
for the elderly.
marketed
not
the
be
The one hundred unit development will
to older Brookline and Newton residents and should
compete directly with the proposed project on
Electric
Avenue.
SOLDIERS FIELD ROAD
A
65
unit
site
on
Soldiers Field Road will directly compete with a project
on
Electric
of
view
project' proposed for an
undisclosed
Avenue and will have
the advantage of more direct
the
Its context
commercial
Charles River.
an
one than that
industrial
is
of
more
the
of
a
Electric
Avenue location, but it will be brought to market sooner.
SUMMARY
almost eight hundred units of housing planned for the
With
Allston-Brighton neighborhood over the next three years, the
market for condominiums may soften due to
proposed
will
developer
and
The
project offers some advantage in its lower density
design and more peaceful location.
market
oversupply.
occur
because of
Capturing a share of the
these
advantages
but
the
must also consider an aggressive pricing strategy
expect
to invest in a marketing program to
healthly rate of absorption.
59
produce
a
Figure 13
Developments in Brighton
Residential
Projected
1986 - 1990
Fall=F
Spring=S
Sales **
Construction ++++
Proposed
Project
S
87
F
86
F
88
Year
F
S
89
89
S
90
F
90
S
91
F
91
S
92
1
******Phase
++++++++++++ Phase 1
+++++++++++ Phase 2
***********Phase 2
Electric Ave.
Development
125 units
Lincoln St .
S
88
F
87
+++++++++++
88 units
***'**
N. Beacon St.
175 units
+++++++++++++
**********
+++++++++
Heritage Dev.
16 units***
Soldiers Field
65 units*****
+++++++++++
1360 Comm. Ave .
60 units*****
+++++++++++
++++++++++++++++
Oste Chev rolt
340 units*************
Allston St.
8 units
Fallow Hill
++++++++++
**
+++++++++++++++
100 units********
Note:
This data obtained from Boston Redevelopment Authority
zoning staff member John Bell, August 1986
60
-A
CHAPTER FIVE
PROGRAM
This
chapter
established
selection.
in
will
for
address
the
the
project
and the
relationship to the market studies.
Finally,
outlined, .' including
be
that
has
rationale
its
examined
Project phasing and
marketing
project
been
for
Pricing concepts will be discussed and
its benefits are explained.
will
program
style
strategies
and
image,
marketing methods, and sales techniques.
DEVELOPMENT TYPE
The
highest
residential
and best use of the site is represented
program.
The
by
site under examination is in
a
an
industrial zone surrounded by a residential area in a market
that
is
exhibiting a strong demand for housing.
could be used for office space,
in
any case,
softening.
for
of
appropriate
site
but has low visability and,
the Boston office market is showing signs
of
The choice of residential and not industrial,
which the market is also fairly strong,
because
The
the market but also because the
to the site context.
was arrived at
use
was
more
The demand for housing in
Boston has been previously noted and this site will easily
accommodate such use.
TOWNHOUSES
The
Program
that
has
been
61
developed
consists
of
two
types:
building
residential
mid-rise
and
townhouses
buildings, each adaptable to condominium sales. There are 24
townhouses each consisting of 4 duplex units around a common
Each block of units has 3 two bedroom units and 1
stairway.
one
bedroom unit.
the
second bedroom.
The 1 BR has a rooftop deck in place
of
The lower duplex units have access
to
private yards with terraces.
small
as
on the rear of the building that also serve
decks
have
units
The upper duplex
their second means qf egress. The 1 BR has 950 sq.ft. with 1
1/2
and
baths
been
has
allotted
accommodated
to each
unit.
Extra
1150
in
baths
buildings
parking space in the lots behind the
One
sq.ft.
the 2 BR units have 2 full
be
can
parking
The
on the streets in front of the buildings.
quad units are joined together to form structures that are 4
to
6
units in length.
These buildings
are
along
placed
Electric Avenue to create a pleasant street similar to those
in the surrounding neighborhood.
found
be
The street will
improved with new walks, trees and streetlights.
MID-RISE
In
rear
the
placed
total
atop
of
building.
of Parcel A a three story
a one story 110 car garage.
building
The
1 BRs are 700 sq.ft.
be
There will
14 one bedroom and 15 two bedroom units
be
will
in
a
this
each and the 2 BRs are
950 sq.ft. The ground level will contain the parking garage,
mechanical rooms,
will
trash compactor,
and lobby.
Lobby
This
have its main entrance from the front of the building,
where there is a drop-off area and visitor parking.
62
A
rear
A Porter will
entry will give access to the parking garage.
be placed the in the lobby to assist residents, accept mail,
and
to
The elevator will lead
security.
provide
to
the
second floor where there will be a common laundry room and a
small lounge that overlooks the main entry.
the
on
To the rear
grounds
building will be a tennis court and landscaped
units.
bedroom
one
five
and
units
bedroom
two
five
The typical floor will contain
top of the garage.
of
DESIGN RATIONALE
forces that determined
The
the site,
from three sources;
political
the
while
climate
what
indicated
on
set limits
was
design
the
build and the site, established
to
profitable
and the
the housing market,
market
The
environment.
political
the design of this project came
density
and
height.
The need
The site has been discussed in an earlier chapter.
to
neighborhood
compatible
project
the
keep
led
to
a
low-rise
existing street patterns.
the
placing
line.
geometry
of
shadows
solutions
by
Here
the
from
the
site.
the
nearby
on
The deep,
reinforced
irregular site led
of the 4 story building against
boundary
noticable
that
scheme
existing
the
with
rearmost
the
garage fills and masks
The
existing streets
Finally,
homes.
structure
mid-rise
and
the
the
odd
is
not
cast
not
does
best
to
of
design
will not be realized if they are strongly opposed
community
and goverment groups.
63
The solution
for
the
Electric Avenue site has to be one that will win the support
of its neighbors and city officals.
While the
The unit designs are influenced by market forces.
need for housing has been great, there are recent signs that
the
market is softening.
Housing prices are
leveling
off
after two years of appreciation that totaled over 60%. There
is
presently
a very large inventory of unsold
units.
units that are selling are those priced in the mid to
range
of
the market.
This supports realtors
claims
The
lower
that
buyers have become very price sensitive.
The units of the project proposed in this paper are designed
to
fall into the middle market range.
will
Keeping costs
down
enable the units to be sold to a wide range of buyers.
The profile
without
of the typical buyer is
children,
well
educated,
managerial or professional job.
lBR flat,
young,
and
single or married
employed
$172,000.
a
The least expensive unit, a
will be priced at $122,500. This can be purchased
by a buyer with an income of as little as $45,000.
expensive
in
unit
The most
is a two bedroom duplex which is priced
This can be purchased by a buyer with an
at
income
of as little as $67,000.
There
are
other reasons for keeping the unit prices
down.
Over eight hundred units of condominiums will be coming into
the Allston-Brighton market.
There is no way of estimating
the absorption rate of these units.
It is also
impossible
to foresee what interest rates on home mortgages will be two
64
years from now. Keeping the unit prices down is an effective
way to minimize both market and financial risks.
UNIT PRICING
The unit pricing is as follows:
Townhouses
One Bedroom Units @ 950 sq.ft. x $175.00/sq.ft. = $142,500
Two Bedr6om Units @ 1,150 sq.ft. x $150.00/sq.ft. = $172,500
Mid-rise
One Bedroom Units @ 700 sq.ft.. x $175.00/sq.ft. = $122.500
Two Bedroom Units @ 950 sq.ft. x $160.00/sq.ft. = $152,000
of the project consists of
the
mid-rise
building and two of the townhouse structures.
The
mid-rise
The
first
phase
building has 50% 1 BR and 50% 2 BR units of small size.
The
in line with what
the
of
prices
these units is kept low,
present market studies indicate will sell best.
the mid-rise building
will
Along
with
a group of the duplex townhouse units
be built to test the market.
This type of building is
relativly unavailable in Allston-Brighton and
consequently,
the units should capture a healthy share of the market.
MARKETING CONCEPT
The
selection
design,
of a project image will inform the
building
advertisments, and even stationary letterheads. All
aspects of the public image of the project must reflect
the
emphasize
the
chosen
concept.
The
advantages: (convenient
market
concept
location,
65
must
quiet
and
stable
t
neighborhood,
low
density) and hide the bad qualities (the
the low income housing project).
Mass Pike,
marketing
The
campaign will also tell the neighbors a great deal about the
development
and
care should be taken not to
arouse
their
concerns.
of an appropiate style is often
use
The
identity.
All
too often,
England
used
by
project
the style is one that has proven
successful many times in the past but is now
New
a
gives
overused.
colonial and tudor styles are the
housing. developers' and the result
most
has
In
often
been
an
unfortunate uniformity.
An
appropiate style should be different,
appealing
that
to buyers.
known
as
were
built.
suburbs
In
and
and
this
latter
the first modern homes as we now
This
style was brought to
the early-20th century just as the
during
England.
the Arts and Crafts Movement
English Art Nouveau,
them
familar
There is an interesting housing style
has its roots in late-19th century
style,
yet
New
first
know
England
streetcar
were being built and it now graces many of Boston's
finest communities. The homes on the streets surrounding the
Electric Avenue
style.
This
site are modest vernacular versions of this
style
is neat and compact and gives houses
a
general "cottage" and comfortable air. This style allows the
use
have
of a set of images in marketing brochures and ads
not yet been used in Boston,
uniqueness of the project.
66
and will underscore
that
the
The
community
threatening
will probably not find this
of
image
as it will project values of stability and home
that are compatible with their own.
this
type
style
'Brighton',
are
very
and
much
should
in
The English origins of
keeping
with
be a rich source of
the
name
material
for
advertisements and promotional literature.
MARKETING TECHNIQUES
Once
the
project
image
has
been
established
and
the
potential buyers identified, an organized sales campaign must
be started.
this
A real estate brokerage firm often will provide
service
by
placing
printing brochures,
advertisements,
designing
and
and conducting broker parties. The fees
for such services are negotiable., An alternative method
to
hire
an
agency
to design
the
advertisements in the print media.
literature
This,
and
is
place
along with an in-
house sales staff, can give the developer greater control of
the marketing effort.
In either case there should be an on-
site sales representive on the developers payroll. Sales are
then
co-broked
percentage
should
with
outside
realtors,
of the brokerage fee.
include
neighborhood,
Specific
thus
saving
sales
material
a well built model of the project
a
well
furnished model unit,
slide show about the project,
a large,
and
a 5-6
changing
a
the
minute
newspaper
ad, and special events. Special events, such as the donation
to restore McKinny Park,
the
neighborhood.
can benefit the project as well as
Pre-sales
67
are
an
important
part
of
marketing
efforts.
construction
market
They
lenders
while
there
are
often
requirements,
is time
to
requried
to
satisfy
and they can test
modify
the
design,
the
and
generate momentum in the sales effort.
SUMMARY
The
program
market,
is
created
contextual,
through
the
interaction
and political forces.
of
The development
must be attractive and afforable to the targeted buyers,
must
be a responsible neighbor,
community's
in
this
political agenda'.
paper
is
an attempt
and it should satisfy
it
the
The project that is proposed
to
reconcile
these
often
conflicting goals. The design is a low density response that
reinforces
the
existing street
patterns,
provides
parking, and fills an unoccupied market niche.
68
ample
Figure 14
Electric Avenue Development Program
TOWNHOUSES
MID-RISE
24 One BR @ 950 sq.ft.
72 Two BR @ 1,150 Sq.ft.
14 One BR @ 700 sq.ft.
14 Two BR @ 950 sq.ft.
Total Net - 105,000 sq.ft.
Total Gross - 116,000 sq.ft.
Total Net - 24,000 sq.ft.
Total Gross - 27,700 sq.ft.
96
Parking Spaces on Grade
80 Parking Spacces on Street
110 Parking Spaces in Garage
Tennis Court, Laundry Room
SUMMARY
Total Site Area - 191,000 sq.ft.
Total Gross Building Area - 143,700 sq.ft.
Floor Area Ratio (FAR) - .75
Precent of Lot Coverage - 40%
Number of One Bedrooms - 38
Number of Two Bedrooms - 87
Total Number of Units - 125
Total Number of Parking Spaces - 206
Parking Ratio - 1.7
PHASE I
Midrise:
Townhouse:
5 One BR @ 950 sq.ft.
15 Two BR @ 1,150 sq.ft.
20
14 One BR @ 690 sq. ft.
14 Two BR @ 950 sq.ft.
28 Units Total
Parking Spaces on Grade
110 Parking Spaces in Garage
Tennis Court, Laundry Room
PHASE II
Townhouse:
19 One Bedrooms @ 950 sq.ft.
57 Two Bedrooms @ 1,150 sq.ft.
76 Units Total
76 Parking Spaces on Grade
69
0
Fig-15 Proposed Development and Context
Townhouse
H
Fig.16
Proposed Development
prrox
tij
e.-rpc. AVa.
P~ePO.~ADpEet"Pw aNr
Fig.17
Site Section of Proposed Development
CHAPTER SIX
THE INVESTMENT DECISION
The
purpose
landowner
that
decision can be made.
sell the land today;
its
to
the political and market context within which
investment
choices:
of the foregoing analysis was to reveal
The landowner has
a
an
three
hold the land in expectation
value will increase in the future;
develop
the
land to its highest, and best use.
In
this Chapter the landowner's options will
with
be
addressed
reference to the relationship between risk and
for each of the alternatives.
the
analysis.
planning his
First,
Two important facts influence
the land owner is contemplating
two
from
Second, he has received at
offers in the vicinity of 1.5
developers interested in purchasing
offers
and
retirement and should ultimately be concerned
with the preservation of assets.
least
return
million
the
represent a low risk and profitable
dollars
land.
These
alternative
to
his developing the site.
The
land has been held for several years by the same
and
has appreciated substantially in value.
are
a reflection of the high prices paid for urban land
this
area
owing
conditions,
such
to the demand for
as
low
interest
housing
rates,
owner
Recent offers
and
in
economic
which
favor
homeownership.
The investor must assess the current offer for his land with
73
If market conditions with
reference to future appreciation.
the land will lose
value.
If he sells the land today for its high offer price,
he may
to housing deteriorate,
respect
forego the opportunity to realize even greater appreciation.
ownership,
home
encourages
which
population
include
available capital at low interest rates, a tax code
growth,
scarce
and
inflation
Most of these factors have been at work to drive up
supply.
the
that favor real estate
conditions
The
in
properties
of undeveloped land and existing
value
The notion that appreciation will continue is a
the region.
hotly debated topic.
What we do know is that the market for
homeownership is very sensitive to each of these conditions.
The
residual land value given current market conditions
far
greater
than the offers received for
the
is
undeveloped
Exhibit 18 is a proforma for the residential program
site.
in
described
$6.1
approximately
to
value
Five.
Chapter
million.
achieved
be
The residual land
from
value
Clearly there is
selecting
the
is
substantial
development
alternative.
The
land
residual
however,
value
derived from
within
uncertain and
analyze
analysis
upon the assumption that current
based
market conditions will continue.
context
the
which
favorable
market
The political and
the development must occur
is,
is
very
these returns may vary. The investor must
the investment performance under several
market conditions.
74
different
The
imposed
notion that more restrictive zoning may be
Allston-Brighton
is
particularly important because it
may
land.
In
add to or subtract from the value of the
either
the short run,
on
impact
the zoning restrictions may have a
In
the
long
negative
decrease
the land value due to the probable
density.
allowable
in
these
however,
run,
in
restrictions will result in a better environment and housing
will command higher prices.
holding
In this event,
the land in order to build optimally in the
becomes the more attractive alternative.
range
the option
of
future
However, the long
perspective may not suit the investor who is about to
retire.
Selling
risk
the land today has an advantage in that it is a low
alternative and the landowner will realize
return on his investment.
result
in a substantial tax burden.
return,
investor
for
however,
the
healthy
The disadvantage is that it will
The developed land
worth a great deal more and produces some tax
added
a
may
or
may
additional
risk
not
is
shelter.
The
compensate
the
assumed
under
the
studied
and
development option.
The
risks
of
developing
the
site
can
be
minimized with design, marketing and pricing strategies that
address
The
the
possible roadblocks to a
successful
project.
landowner may also limit his exposure to risk by way of
the investment vehicle he chooses.
The attached financial data shown on Exhibit 18 represents a
75
the
minimize
and
return
such as construction costs,
The
landowner.
the
to
risk
Key
conservative.
upon which it is based are
assumptions
variables
maximize
strategy and deal structure that will
development
and
rates
interest
sales velocity have been altered to test the degree to which
negative
or
positive
changes in
these
impact
variables
profitability.
The
structure which will reduce the landowner's exposure to
contributes the land to a
as a limited partner,
landowner,
the
which
in
development risk involves one
the
of
some
general partnership that will manage the development and pay
all
the
of
"up
front" costs
associated
with
pre-
the
construction activity. The general partners will also assume
risk"
"at
the
position
with
respect
to
recourse
the
The construction loan, when funded, will return
financing.
a partial payment of $500,000 for the land to the landowner,
which
he
security.
in turn invest in
may
This
a
risk
government
free
will provide diversification and cash flow.
value
A preferred return of the remaining $1 million market
of the land will be paid out as the project begins to show a
positive cash flow.
The
general
partnership
may require as much
a
as
fifty
percent share of the residuals in exchange for assuming
all
to
the
of
the
risks.
landowner
partnership
is
In
this event,
the total profit
in the vicinity of $ 4
entity
million.
with a good track record in
76
A
general
developing
successful
projects will assist in obtaining the
financing
arrangement,
fully
a
essentially
is
which
favorable
leveraged situation.
RISK ANALYSIS
are
There
principal
three
risk:
of
areas
political,
financial, and market.
The
the
politics of developing sites in
There are at least five civic
neighborhood are complicated.
the 'BRA,
associations,
the
and
Association
Allston-Brighton
Allston-Brighton
the
newly' created
Planning
Improvement
Zoning
and
Advisory Committee, that will participate in the process.
all
likelihood the Mayor will approve the Interim
Overlay
densely
most
And although there is a strong demand
Allston-Brighton is already one of
housing,
neighborhoods.
populated
125
approximately
Planning
finally giving the residents some say in
District,
the planning process.
for
In
of
units
housing
significant amount of neighborhood
Boston's
The
addition
of
will
attract
a
Furthermore,
interest.
the site is located in one of Allston-Brighton's most stable
neighborhoods.
Any
threat
to that stability is
sure
to
create resistance to the project.
The
possibility
will
may
land.
that a development proposal for this
not be approved is a very significant risk in that
cause the owner to forfeit the opportunity to sell
The
purchasers
owner
that
will
have
demonstrated
to
it
the
potential
a residential development for the site
77
site
is
not feasible.
This outcome may not be so devastating if the
owner
wishes
to continue to operate his
site,
or
business
on
the
can find a buyer interested in an industrial
use
for the site.
The
political
addresses
risk can
neighbors
and
community
is
Brian McLaughlin,
as
an
with
financially
community
groups
early
critical given
the
on
to
both
Responding to
political
climate.
City Councilor for Allston-Brighton
organizer of.the various community groups
development
that
The developer should arrange to meet
mobilize support and hear from the oppostion.
the
program
neighborhood concerns and that works
even when scaled down.
with
be minimized with a
and
would
assist
in
acts
concerned
arranging
for
a
developer to meet with the residents.
The
developer must also be prepared to offer the
and
the
city some incentive for
supporting
the
residents
project.
This could take the form of providing "affordable" units in
accordance
with Mayor Flynn's proposed inclusionary
zoning
policy, which, although not yet a law, is causing developers
to
offer approximately ten percent of the market rate units
at cost.
The developer should also consider offering to the
neighborhood a contribution to be used to renovate
Park,
a
McKinney
potentially attractive amenity which is now
dilapidated
condition,
improvement
loans
to the
or
to provide low
surrounding
interest
residents.
in
home
There
should be some creativity and flexibility in the program
78
a
in
order that these concessions can be offerred.
impact
The
housing
of
loss
affordable
upon profitability of a ten percent
requirement
revenue
upon the project represents a
approximately $700,000.
This
is
that
assumming
twelve units are put on the market at cost.
In summary, this project will be coming on line in the midst
of
become
the 'interim overlay planning process and may
a
test case for the neighborhood groups in their participation
in
the
planning
.For
process.
possible that density issues,
restriction
this reason
height
parking requirements,
and concern over design,
affordability and the
carefully scrutinized today than in the past.
side,
positive
accessible.
the
site is large ,
isolated
be
will
market that the development is likely to attract,
more
very
is
it
On the
easily
and
not
The program with its townhouse scheme does
detract from the stability of the neighborhood.
MARKET RISKS
Although the demand for housing in the Boston area has
strong
of
and appreciation rates on housing units in the range
20-30%,
exhibit
been
the
market for units in
weaknesses
that
Allston-Brighton
are not present
in
the
may
general
market area.
Developers
have flocked to Allston-Brighton because of
strong demand by students for rental units and the ease,
the
at
least in the past, with which projects have been approved. At
79
there are approximately 750 new units
present
Allston-Brighton.
at
occurring
a
in the general area is also
Development
rapid
pace
for
planned
and
must
be
in
considered
estimating the supply side of the market.
The
of
phasing
the project is intended
to
minimize
the
market risk represented by the possible oversupply situation
when the project comes on line, approximately two years from
A two phased project will bring fewer units on line at
now.
one
in
time and willJellow for a testing of the market
a general sense but also in terms of pricing,
and construction,
and operating cost.
demand
unit
mix
The second phase can
be altered in accordance with the conclusions drawn from the
acceptance of the first phase.
Market
risk
analyzes
is
the
also diminished by
market
that
assumptions
and
A program which attempts to establish
market niche and a competitive edge should
The
study
existing and projected supply of housing
the nature of demand.
a
a
be
designed.
upon which the program is based should
be
tested under varying rates of absorption and unit prices.
analysis
Sensitivity
absorption
was performed based upon a
range
of
rates that might occur if market conditions were
either to deteriorate or improve. With a range of absorption
rates
(profit
per
one to ten units
of
as
respectively.
a
month,
the
profitability
to
42%
The effect of a weak housing market upon
the
percentage of cost) varies from 16%
profitability of.the project is very substantial.
80
FINANCIAL RISK
The
ability
structure
where
to
of
deal
The fully leveraged
deal
project
cost
manage financial risk is by
and project financing.
the construction loan funds the entire
way
and the landowner receives the value of the land at the time
the loan is funded is an example.
the development entity and the assets
arranged, by
posture,
the
of
In exchange for this low
are not at risk.
landowner
The recourse financing is
the landowner must give up a larger percentage
the development entity
to
profit
assumes
which
the
risk
of
the
recourse loan.
Although the exposure to risk is reduced, the returns to the
landowner
are still tied in to the value of the
residuals.
The degree to which the residuals are impacted by changes in
the
cost of construction and interest rates was analyzed to
More pessimistic
determine the variability of the returns.
and
optimistic
were
assumptions
substituted
in
the
sensitivity analysis and the following table illustrates the
effect upon profitability.
PROBABLE
OPTIMISTIC
PESSIMISTIC
(Profit as a % of cost)
------------------------------------------------------CONSTRUCTION
COSTS ($50-$80)
INTEREST RATES'
(9%-16%)
50%
38%
32%
40%
38%
30%
is
The impact upon profitability
reduction
in
not as extreme as that
the rate of sales per
81
month.
However,
of a
the
results of the analysis are due in part to the fact that the
interest cost on the construction loan is a small
component
Rising interest rates
will
have a far greater impact if one consider their effect
upon
of
overall project cost.
the
demand for housing.
The potential increase in return from a
decrease in hard construction costs is notable.
SUMMARY
There
The risks of developing real estate are considerable.
are
methods to control the exposure to risk.
Phasing
the
limits the size of the investment initially to test
project
the product and provides flexibility and the opportunity
to
alter the program and the prices. Risk can also be minimized
by
an investment vehicle which provides the owner with
cash flow and a preferred return and
front
up-
without the "at
risk" status under the recourse financing.
The
financial analysis,
the
of
over
enthusiam.
The
profit
housing
which indicates a
before-tax
cause
for
investor must realize that the market
for
six million dollars,
may
be
is highly sensitive to adverse economic
conditions
that
are largely unpredictable.
The
development
option,
even
under
optimal conditions,
is a
alternative
without
guarantee.
82
BIBLIOGRAPHY
A Profile of Allston-Brighton
Prepared for The Allston-Brighton Community Development
Corporation and The John F. Kennedy School of Goverment,
May 28 1958, Peter Levine and Melissa Roderick
Boston's Changing Housing Patterns 1980-1985
BRA Research Paper, March 1986, Rolf Goetze, Ph.D.
Boston Housing Authority Housing Occupancy, Rehabilitation,
and Conversion Plans Update
BRA'Research Paper, June 1985, Jane A. Van Buren
The Boston Housing Market and Its Future Perspective
BRA Research Paper, October 11, 1985, Alex Ganz
Boston Population and Housing by Neighborhood Areas, 1980
US Bureau of the Census
The Bull in the Garden: A History of Allston-Brighton
Willam P. Marchione, 1986
Condominium Development in Boston; By Year, Bly Neighborhood,
1983
Through June 30
Prepared for the Kennedy School of Goverment, August
1984, Jeffery P. Brown, John Huggins, Tatsuro Matsuwaki,
John Robertson
Housing Production in Boston: A Review of Supply, Inventory
of Activity, and Issues for the Future
BRA Research Paper
Titman,"Urban Land Prices
Sheridan
American Economic Review, June, 1985
Under
Uncertainty",
The Boston Globe
Development Review Procedures
BRA Publication
Overlay
Interim
Allston-Brighton
Discussion Workbook
BRA Publication
Planning
District
Boston Zoning Code and Enabling Act
Maximum Residential Potential in Boston, By Neighborhood
BRA Research Paper, October 17 1985, Jacob Schaffer
83
The Neighborhood of Allston-Brighton in Boston
BRA Research Paper, August 1985, Anne Hafrey
Interviews:
Kevin Ahearn, Principal, Otis and Ahearn
Arther Alan, Appraiser, Bank of Boston
Larry Bacow, Spaulding Investments
Tod Beatty, Principal, Ingram, Reattig, and Beatty
John Bell, Boston Redevelopment Authority Zoning Board
Merrial Diamond, Principal, Parencorp
Mark Fortan, Marketing Director, Ferrari and Forman
Jean Hamiliton, Boston Redevelopment Authority
Gordon Hurwitz, Principal, Parencorp
Ken Kirwin, Metropolitan District Commission
Don Klabin, Developer
Rick Kobus, Principal, Tsoi and Kobus
Paula Macomber, Realtor, Ingram, Rettig, and Beatty
Brain McLaughlin, City Councillor, Brighton District
Willam Marchione, President, Brighton Historical
Society
Garlan Morse, Senior Vice-President, Bank of Boston
Mary Totten, Marketing Director, Marquis Century 21
84
APPENDICES
85
EXHIBIT 18
GENERAL INFORMATION AND ASSUMPTIONS.
CONSOLIDATED: 1001 FINANCING
PHASES ONE AND TWO
PROJECT NAME: BRIGHTON CONDOS
DATE OF PROJECTION: AUGUST 1 1986
CONSTRUCTION PERIOD INNONTHi (CP):
MARKETING PERIOD INMONTHS(NP):
UNITS SOLD PER NONTH(SPM):
TOTAL UNITS(TU)
TOTAL NET REVENUES(TNR)
20,991,300
TOTAL COSTS
14,803,665
GROSS PROFIT
6,187,635
22
25
5
125
FINANCING ASSUMPTIONS:
CONSTRUCTION LOAN (phase one)
$8,726,320
CONSTRUCTION LOAN (phase two)
$5,790,801
22
10.001
0.01
TERM(T)
INTEREST RATE()
POINTS(P)
UNIT MIX AND REVENUE PROJECTIONS
LAND AREA: 190 000 S.F.
TOTAL UNITS: 115
GROSS SQUARE FOOTAGE (CONDOS):
GROSS SQUARE FOOTAGE (TOWNHOUSES):
NET SQUARE FOOTAGE (CONDOS):
I uni
One B.R.Condo
27,658
116,160
24,050
NET SQUARE FOOTAGE (TOWNHOUSES):
UNIT MIX
RATIO OF GROSS TO NET(CONDOS):
RATIO OF GROSS TO NET(T.H.):
AVERAGE $ PER UNIT
TOTAL REVENUE ON UNITS(TR)
(net 41 brokerage)
105,600
s.f.
19, 0,000
1,7,000
PARKING REVENUE
$per
$ psf
unit
1.15
1.10
163,240
total $
14
700
175
122,500
1,715,000
Two B.R condo
15
950
160
152,000
2,280 000
One B.R. T.H.
Two B.R.T.H.
24
72
950
1,150
175
150
166,250
172,500
3,99000
12,420,000
Parking
Structured Spaces(SS)
Price per space(PR)
110
17,000
Spaces at Grade:
Spaces per unit:
Development Costs
96
1.65
Pre-Construction
Construction Start
Soft Costs:
A&E (51)
Survey, Borings,
Geotecnical,2 E
Insurance
Legal/Acctng
Permits
Development Fee
Contingency (5%)
R.E. Taxesiconst)
R.E. Taxes (mktg)
546,941
50,000
0
50,000
179,288
546,941
546,941
56,526
201,003
Mktg/public relations
TOTAL SOFT COSTS(SC)
100,000
125,000
279,288
2,402,641
gross cost
0
0
0
546,941
0
50,000
0
150,000
179,288
546,941
546,941
56,526
201,003
0
125000
0
2,681,929
0
0
546,941
546,941
596,941
596,941
746,941
926,230
1,473,171
2,020,112
2,277,638
2,076,641
2,277,641
2 402,641
2,681,929
0
0
4,376
4,376
4,776
4,776
5,976
7,410
11,785
16,161
16,613
18,221
18,221
19,221
21,455
HARD COSTS:
Land
Parking:
at grade: 1010 $1000
structured: 1100 $10,000
Demolition
Landscape
500,000
500,000
148,200
1,1 ,000
76,250
178,750
148,200
1,100,000
76,250
178,750
1,
936,025
6,969 600
30:00
Condos 4 $70
Townhouses 1 $60
Tennis Court
TOTAL HARD COSTS(hc)
1,936,025
S6,969600
30,000
10,938,925
TOTAL BEFORE FINANCING(TBF)
-13,341, 466
145,171
1,317,028
POINTS - "
INTEREST ON CONST. LOAN
86
145,171
1,317,028
0
500,000
500,000
648,200
5,186
1,748,200
13,986
14,596
1,824,450
16,026
2,003,200
3,939,225
31,514
87.271
10, 908 25
10
,938825 87,511
87,511
10,938,825
10,938,825
87,511
87,511
10,938825
10, 938,825
87,511
11,
083,996
88,672
12,40!j024
99,208
12, 401,024
99,208
12,401,024
99,208
EXHIBIT 18: GENERAL INFORMATION : FULLY LEVERAGED, PHASE ONE
PHASE ONE (1001 FINANCING)
PROJECT NAME: BRIGHTON CONDOS
D F ET- AUGUST 12,1986
IOnINMONTHS (CP):
pUNTU CT1
MARKE ING PERID ?N MONTHS(MP):
UNITS SOLD PER MONTH(SPM):
TOTAL UNITS(PHASE ONE)(TUl)
12
14
5
69
TOTAL UNTS IPASE TWH)(T191
MAY
1,1987
12
10
70
60
ESTIMATED START DATE
CONSTRUCTION PERIOD/MOS. (PHASE I)(CPI)
CONSTRUCTION PERIOD/MOS (PHASE TWO) (CPTWO)
HARD COSTS/CONDOS(HCO)
HARD COSTS/TOWNHOUSES(HCT)
5i6
FINANCING ASSUMPTIONS:
CONSTRUCTION LOAN
8,726,320
TERM(T)
INTEREST RATE(I)
POINTS(P)
26
10.001
87,263
UNIT MIX AND REVENUE PROJECTIONS
LAND AREA: 190 000 S.F.
TOTAL UNITS: (TU)
27,658
GROSS SQUARE FOOTAGE (TOWNHOUSES)
NET SQUARE FOOTAGE (CONDOS):
One
Two
One
Two
I units
B.R.Condo
B.R condo
B.R. T.H.
B.R.T.H.
14
15
10
30
GROSS REVENUES PER MONTH(RPM)
PARKING REVENUE(TOTAL)
44,000
s.f.
$ psf
700
950
950
1,1505
175
160
175
00
297,501
Permits(PMTS)
Development Fee(FEE)
Contingency (51) (CONTG)
R.E. Taxes(const) (REC)
R.E. Taxes (aktg)
50,000
25,000
100,000
129,400
297,501
297,501
56,526
100,840
Mktg/public relations(MPR)
75,000
TOTAL COST BEFORE INTEREST
INTEREST COST
7,879,295
847,024
8,726,320
11,793,200
3,066,880
total $
PARKING
122,500
152,000
166,250
172,500
1,715,000
2,280,000
1,662,500
5,1,900
Structured Spacus(SS)
Price per space(PR)
Spaces at Grade: (SAG)
Spaces per unit:
Parkin :
at grade: 101f $1500(PAG)
structured: 824 $10,000(SP)
Demolition(DEM)
Landscape(LNDS)
Site Preparation
Condos I $70(HCC)
Townhouses # $60(HCTH)
Tennis Court(TC)
TOTAL HARD COSTS(hc)
Land(L)
1,429,270
TOTAL COST
TOTAL REVENUES(NET)
TOTAL PROFIT
PROFIT AS At OF COSTS
PROFIT AS A I OF SALES
(TR)
5
784,964
1,394,000
$per unit
DEVELOPMENT COSTS
A&E (51)(AE)
Survey, Borin s
Geotechnical 21i(S)
Insurance(INS)
Legal/Acctng (LA)
1.15
1.10
RATE OF ABSORBTION(SALES PER MONTH)
48,400
24,050
NET SQUARE FOOTAGE (TOWNHOUSES)i
UNIT MIX
RATIO OF GROSS TU NET(CONDOS):
RATIO OF GROSS TO NET(T.H.):
125
GROSS SQUARE FOOTAGE (CONDOS):
60,000
820,000
50,000
100,000
50,000
1,936,025
2,904 ,000
30,000
5,950,025
500,000
6,450,025
35.15%
26.01%
87
82
17,000
40
1.77
EXHIBIT 18
PHASE ONE
CASH FLOW ANALYSIS : 1001 FINANCING
MONTHS 1-9
APRIL
MONTH
MAY
JUNE
NOVEMBER DECEMBER
SEPTEMBER OCTOBER
AUGUST
JULY
------------------------------------------------------w---w-----------------
Revenues:
Sales proceeds
Less Brokerage
Net Sales
Parking Revenue
Total
0
0
0
0
0
0
0
0
0
59,500
74,375
8,925
8,925
8,925
8,925
8,925
8,925
8,925
2,083
25,000
2,083
25,000
2,083
1,550
2,083
1,550
2,083
1,550
2,083
1,550
2,083
1,550
2,083
1,550
Expenses:
Land Acquistion
500,000
A&E
148,751
Development fee
Survey
59,000
Insurance
Legal/Acctg
10,000
Permits
129,400
R.E.Taxes (const)
R.E. Taxes(unsold units)
Marketing
28,263
2,907
2,907
2,907
2,907
2,907
2,907
2,907
2,907
892,504
297,501
178,501
509,058
509,058
509,058
509,058
509,058
838,151 1,084,633
336,417
193,966
524,523
524,523
552,786
524,523
524,523
Hard Costs
Total
28,263
Cash flow
before debt serv.
(838,151) (1,084,633)
(336,417) (193,966)
(524,523) (524,523)
Less
0
0
Debt Service:
Payback(cumulativ
0
0
0
0
0
0
0
0
(552,786) (524,523) (524,523)
0
0
0
0
0
0
0
0
PROJECT CASH FLOW
(838,151)(1,084,633)
CASH FLOW
(CUMULATIVE)
500,000
(336,417) (193,966)
0
0
(524,523) (524,523)
0
0
(552,786) (524,523) (524,523)
0
0
0
0
--------------
PHASE ONE
MONTHS 10-18
JAN
FEB
MARCH
APRIL
MAY
JUNE
JULY
AUGUST
SEPT
---------------------------------------------------------------------------------------------------------
Revenues:
Sales proceeds
Less Brokerage
Net Sales
Parking Revenue
0
0
0
0
0
0
0
0
784,964
31,399
753,565
101,014
784,964
31,399
753,565
101,014
784,964
31,399
753,565
101,014
784,964
31,399
753,565
101,014
784,964
31,399
753,565
101,014
Total
0
0
0
0
854,580
854,580
854,580
854,580
854,580
1,550
1,550
1,550
1,550
1,550
15,346
2,907
14,234
2,907
13,122
2,907
12,010
2,907
10,898
2,907
94,179
18,691
17,579
16,467
15,355
760,401
835,888
837,000
838,112
839,224
0
0
684,361
684,361
752,300
1,436,660
(524,523) (515,598)
76,040
83,589
Expenses:
Land Acquistion
A&E
Development fee
8,925
74,375
8,925
8,925
2,083
1,550
2,083
1,550
2,083
1,550
2,083
1,550
R.E. Taxes(unsold units)
Marketing
2,907
Hard Costs
509,058
2,907
509,058
2,907
509,058
2,907
509,058
Total
598,899
524,523
524,523
515,598
Cash flow
before debt serv.
(598,899) (524,523)
Survey
Insurance
Legal/Acctg
Permits
R.E.Taxes (const)
74,375
(524,523) (515,598)
Less
Debt Service:
Payback(cumulativ
PROJECT CASH FLOW
::::=-=-==-:
CASH FLOW
(CUMULATIVE)
0
0
0
0
(598,899) (524,523)
0
0
---
0
0
0
88
76,040
83,700
=:::::::
m:::::::::
0
753,300
754,301
755,302
2,189,961 2,944,262 3,699,564
159,629
243,329
83,811
83,922
::::::::::-
327,140
411,063
PHASE ONE
MONTHS 11-26
784,964
Parking Revenue
Total
854,580
-
-
Total
784,964
31,399
753,565
101,014
854,580
784,964
31,399
753,565
101,014
854,580
784,964
31,399
753,565
101,014
854,580
784,964
784,964
31,399
753,565
101,014
31,399
753 565
101,014
854,580
854,580
784,964
31 399
753,565
101,014
854,580
784,964
31,399
784,964
753,565
101,014
31,399
753,565
101,014
854,580
854,580
1,550
74,375
1,550
1,550
1,550
1,550
1,550
1,550
1,550
1,550
9,432
2,907
7,965
2,907
6,499
2,907
5,033
2,907
3,567
2,907
2,100
2,907
634
2,907
2,907
8,024
6,558
79,467
4,457
1,550
846,556
848,022
775,113
850,122
853,029
761 900
763,220
7,495,868 8,259,088
468,000
8,727,088
0
774,344
850,122
------------------------------------------------------------------------
13,889
12,423
Cash flow
before debt sery.
840,691
842,157
Less
Debt Service:
756,622
757,941
Payback(cumulativ 4,456,185 5,214,127
PROJECT CASH FLOW 84,069
BEFORE SPLIT
CASH
FLOW
(CUMULATIVE)
JUNE
MAY
APRIL
--------------------------------------------------------------------------------------------------------31,399
753,565
101,014
Expenses:
Land Acquistion
AlE
Development fee
Survey
Insurance
Legal/Acctg
Permits
R.E.Taxes (const)
R.E. Taxes(unsold
Marketing
Hard Cos s
MARCH
FEB
JAN
DEC
NOV
OCT
Revenues:
Sales proceeds
Less Brokerage
Net Sales
495,132
10,957
9,490
843,623
845,089.
759,261
760,580
5,973,388 6,733,968
84,216
84,362
84,509
84,656
84,802
579,347
663,710
748,219
832,874
917,676
89
853,029
1,692,021 2,542,143 3,395,173
PHASE TWO (100% FINANCING)
PROJECT NAME: BRIGHTON CONDOS
CONSTRUCTION PERIOD INMONTHS (CPTWO)
10
11
5
56
56
MARKETING PERIOD IN NONTHS(NPTWO)
UNITS SOLD PER MONTH(SPTWO)
TOTAL UNITS(PHASE ONE)(TUI)
TOTAL UNITS (PHASE TWO)(TU2)
FINANCING ASSUMPTIONS:
CONSTRUCTION LOAN
HARD COSTS/CONDOS(HCO)
HARD COSTS/TOWNHOUSES(HCT)
INFLATION FACTOR(IF)
51790,801
TERM(T)
INTEREST RATE(I)
POINTS(P)
UNIT
MAY1,1988
12
10
73.5
63
1.05
ESTIMATED START DATE
CONSTRUCTION PERIOD/MOS. (PHASE I)(CPI)
CONSTRUCTION PERIOD/MOS (PHASE TWO)(CPTWO)
DATE OF PROJECTION: AUGUST 12,1986
21
10.00%
57,908
MIX AND REVENUE PROJECTIONS
LAND AREA: 190 000 S.F.
TOTAL UNITS: (iU)
125
GROSS SQUARE FOOTAGE (CONDOS):
GROSS SQUARE FOOTAGE (TOWNHOUSES):
NET SQUARE FOOTAGE (CONDOS):
NET SQUARE FOOTAGE (TOWNHOUSES):
UNIT MIX
0
67,760
0
61,600
* psf
0
700
175
122,500
950
160
152,000
950
1,150
175
150
166,250
172,500
0
One B.R. T.H.
Two B.R.T.H.
14
42
1.10
$per unit
s.f.
Two B.R condo
1.15
RATIO OF GROSS TO NET(T.H.):
RATE OF ABSORBTION(SALES PER MONTH)
GROSS REVENUES PER MONTH(RPMTWO
PARKING REVENUE(TPRTWO)
I units
One B.R.Condo
RATIO OF GROSS TO NET(CONDOS):
total
-
$
PARKING
0
0
2,327,500
7,245,000
Structured Spaces(SSTWO
Price per space(PR)
Spaces at Grade: (SAGTWO)
Spaces per unit:
DEVELOPMENT COSTS
A&E(5l) (AETWO
Survey
214,190
Borin s
Geotechnical 21E(STWO
Insurance(INSTWO
Legal/Acctng(LATWO
Permits(PMTSTWO
Developsent Fee(FEETWO
Contingency (5%)(CONTSTWO
R.E. Taxes(const)(RECTWO
R.E. Taxes (mktg2)
Mktg/public relations(NPRTWO)
0
25,000
50,000
112,738
214'190
214,190
56,526
100,163
50,000
Parking:
at grade: 56@ $1500(PAG)
structured: 1101 $10,000(SP)
Demolition(DEM)
Landscape(LNDS)
Site Preparation
Condos @ $70(HCC)
Townhouses @ $60(HCTH)
Tennis Court(TC)
TOTAL HARD COSTS(HCTWO)
Land(LTWO)
1,036,997
TOTAL COST BEFORE INTEREST
INTEREST COST
5,320,797
470,004
TOTAL COST
TOTAL REVENUES(NET)
TOTAL PROFIT
5,790,801
9,189,600
3,398,799
PROFIT AS A%OF COSTS
PROFIT AS A I OF SALES
(TR)
88,200
0
26,250
78,750
25,000
0
4,065,600
0
4,283,800
0
4,283,800
58.69%
36.991
90
5
854,688
467,500
28
17,000
56
1.49
EXHIBIT 18
CASH FLOW ANALYSIS : 1001 FINANCING
PHASE TWO
MONTHS 1-9
MONTH
APRIL
NOVEMBER DECEMBER
MAY
SEPTEMBER OCTOBER
AUGUST
- --------------------------------------------------JUNE-------JULY
-----------------Reven ues:
Sales proceeds
Les s Brokerage
Net Sales
Parki ngRevenue
Total
0
0
0
0
0
0
0
0
0
42,838
53,548
8,032
8,032
8,032
8,032
8,032
8,032
8,032
2,500
12,500
2,500
12,500
2,500
943
2,500
943
2,500
943
2,500
943
2,500
943
2,500
943
Expen ses:
Land Acquistion
0
A&E
107,095
Devel opsent fee
Surve y
0
Insur ance
Legal /Acctg
5,000
112,738
Perai ts
R.E.T axes (const)
,
R.E. raxes(unsold units)
Marke ting
Hard Costs
2,358
642,570
2,358
214,190
2,358
128,514
2,358
471,218
2,358
471,218
2,358
471,218
2,358
471,218
2,358
471,218
Total
224,833
784,577
239,581
142,348
485,052
485,052
513,315
485,052
485,052
(224,833)
(784,577)
(239,581)
(142,348)
(485,052)
(485,052)
(513,315)
(485,052)
(485,052)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(224,833)
(784,577)
(239,581)
(142,348)
(485,052)
(485,052)
(513315)
(485,052)
(485,052)
0
0
0
0
0
0
0
0
0
Cash flow
before debt serv.
Less
Debt Service:
Payback(cusulativ
PROJECT CASH FLOW
BEFORE SPLIT
CASH FLOW
(CUMULATIVE)
28,263
28,263
0
91
PHASE TWO
MONTHS 10-18
------------------------------------
SEPT
AUGUST
JULY
JUNE
MAY
APRIL
MARCH
FED
JAN
Revenues:
--
Sales proceeds
Less Brokerage
Net Sales
Parking Revenue
0
0
0
0
854,688
34,188
820 500
41,741
854,688
34,188
820,500
41,741
854,688
34,188
820,500
41,741
854,688
34,188
820,500
41,741
854,688
34,188
820,500
41,741
854,688
34,188
820,500
41,741
854,688
34,188
920,500
41,741
Total
0
0
862,241
862,241
862,241
862,241
862,241
862,241
862,241
Expenses:
Land Acquistion
8,032
a,032
53,548
AE
Development fee
Survey
Insurance
53,548
2,500
Legal/Acctg
943
943
Permits
R.E.Taxes (const)
R.E. Taxes(unsold units)
# 2,358
Marketin
509,058
Hard Costs
2,358
509,058
576,439
520,392
Total
943
943
943
943
943
943
943
15,346
2,358
14,234
2,358
13,122
2,358
12,010
2,358
10,898
2,358
9,786
2,358
8,674
2,358
18,648
17,536
16,424
15,312
14,200
13,088
65,523
796,718
Cash flow
before debt serv.
843,593
844,705
845,817
846,929
848,041
849,153
0
759,234
759,234
760,235
1,519,468
761,235
762,236
763,237
764,238
(576,439) (520,392)
84,35?
84,471
84,582
84,693
84,804
84,915
79,672
84,359
168,830
253,412
338,104
422,909
507,824
587,496
(576,439) (520,392)
Less
Debt Service:
0
0
0
Payback(cumulativ
PROJECT CASH FLOW
CASH FLOW
(CUMULATIVE)
0
0
2,280,704 3,042,940
3,806,177 4,570,415
717,046
5,287,461
PHASE TWO
MONTHS 11-26
Sales proceeds
Less Brokerage
JAN
DEC
NOV
OCT
Revenues:
JUNE
MAY
APRIL
MARCH
FEB
---------------------------------------------------------------------------------------------------------
854,688
854,688
854,688
34,188
34,188
34,188
854,688
34,188
Net Sales
Parking Revenue
820,500
41,741
820,500
41,741
820,500
41,741
820,500
41,741
Total
862,241
862,241
862,241
862,241
943
943
943
943
R.E. Taxes(unsold
Marketing
Hard Costs
10,105
2,358
9,127
2,358
8,150
2,358
7,172
2,358
Total
66,954
12,42?
11,451
795,287
849,812
850,790
504,000
Debt Service:
Payback(cumulativ 5,791,461
0
0
0
0
0
0
10,474
0
0
0
0
0
851,767
0
0
0
0
0
0
0
0
Expenses:
Land Acquistion
A&E
-Development fee
53,548
Survey
Insurance
Legal/Acctg
Permits
R.E.Taxes (const)
Cash flow
before debt serv.
Less
849,812
PROJECT CASH FLOW
291,287
CASH FLOW
(CUMULATIVE)
878,783 1,728,595
851,767
0
0
0
0
0
2,579,385 3,431,152
0
0
0
0
0
850,790
92
LIST OF EXHIBITS
Page
Figures
Fig.1
Map of Boston .................................... 30
Fig.2
Map of Brighton .................................. 31
Fig.3
Proposed Site
Fig.4
Contour Map .. ...
Fig.5
Site Section.....................................34
Fig.6
N'eighborhood Features ............................ 35
Fig.7
Zoning Map .................................
Fig.8
Auto and Bus Circulation ........ . ... .....
Figs.9-12
32
.................
. ..............
. .....
..
.o..33
36
......
37
Photographs of the Site and Neighborhood ..38-41
Fig.13
Projected Residential Development in Brighton,...60
Fig.14
Program of the Proposed Development ....
Fig.15
Plan of Proposed Development and its Context .... 70
Fig.16
Plan of Proposed Development ................... 71
Fig.17
.. 72
Section of the Proposed Development .. ........
Fig.18
Project Proforma and
.......
69
Cash Flow Analysis...............................86
6