Diocese of Springfield Selling Property

The Roman Catholic Diocese of Springfield is in the process of selling 7 properties.One, on Kopernick Street in the Indian Orchard section of the city, was sold to Campagnari Construction on June 2 for $200,000.Another, at 110 Cyman Drive was sold to Franciscan Friars (also on June 2) for $600,000 and the Franciscans, who had been leasing the property, will continue to use it for retired members of their order.And in May, 17 North Street in Ware, the former rectory for All Saints Church sold for $190,000 to a local investor.The other properties currently for sale are:

  • 3 Elm Street, Northampton - the closed St. Mary of the Assumption Church ($2.9 million list price)
  • 6 Union St, Westfield - the former rectory for Our Lady of the Blessed Sacrament ($1.5 million list price)
  • North Pearl St, Pittsfield - the closed St. Joseph High School ($2 million)
  • Kopernick St, Indian Orchard (the former school) is available for sale (price upon request) or lease ($9.00/SF)

There is a clause in the sale of former diocesan property that bans any uses inconsistent with the teachings of the Catholic Church, as determined by the Bishop, according to a recent MassLive article.

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Daly Appraisal Post - North Shore - Beverly thinks about limiting growth

NORTH SHORE HOUSING. A regional approach to housing needs to be advocated to quell NIMBYism. Beverly has added 1,400 housing units since 2014, when new Mayor Michael Cahill made housing a priority. But the growth has led to complaints from residents about poorly maintained streets and an aging & shut down bridge connecting the west side to the downtown. City Councilor Matt St. Hilaire says downtown story heights of apartment buildings should be reduced from five to three. Saugus and Peabody have already adopted similar anti-housing measures.Read full article here: 

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Daly Appraisal Post - Online Boston Atlas

The Boston Public Library has a new mapping program to discover the presentation of a property in an old city atlas. For instance, you can type in a Marine Road address in South Boston and discover it used to be called Ninth Street. Or type in the address for the Boston Garden (a/k/a TD Garden) at 135 Causeway Street and find out that North Station was once called Union Station. Or find proof that 4 Yawkey Way (Fenway Park) used to be called and unfortunately is now again called 4 Jersey Street.  Here's link to mapping program: https://www.atlascope.org/Read full article here: 

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Daly Appraisal Newsletter - Demand for Medium-Size Housing Swings Back

Appraisal Insights

Illustrating the power of real estate appraisals to provide valuable property and market insightsSometimes we discover a surprise gem when appraising commercial property, such as this organ now located in a Waltham retail store. It bears the inscription, "New England's Premier Organist John Kiley played this organ for the Boston Red Sox at Fenway Park for over twenty years." Mr. Kiley was organist from 1953-1989. He passed away in 1993.

Here's a sampling of some of our recent appraisals:

  • Retail and office building in Waltham Center

  • An industrial and automotive building in Waltham

  • A 1,200-SF parcel in South Boston approved for a 3-unit condo complex

  • An undeveloped vacant lot in Dorchester

  • A condominium complex being developed in Westfield

  • A used car lot in Springfield

  • A 20,000 SF Class A office building in West Springfield

  • An ice cream parlor & diner in Hampden

  • A hair salon & upstairs apartment in Medford

Featured Article

Demand for Medium-Size Housing Swings Back

By Linda Sakelaris

Staff Writer

Housing developers have spent the past decade building ever-larger homes just as the average U.S. household unit was shrinking.

This demographic upset has negatively affected existing home sales in the Northeast, where sales of existing homes fell 2.9% in July although existing home sales were up 2.5% nationwide.

Problems in New England have been blamed on an inadequate inventory of medium-size homes. The shortage has driven up prices, resulting in higher mortgages and greater obstacles for middle-income buyers.

Builders, however, appear to be shifting focus. Last year, the average size of new homes fell to 2,320 median square feet (SF) from 2,500 SF in 2015. This indicates that developers may address the “missing middle housing,” a term coined by California architect Daniel Parolek. Middle housing is affordable to middle-income buyers and includes duplexes, courtyard apartments, bungalow units and multiplexes as well as starter homes.

Since the 2008 economic downturn, the percentage of newly constructed homes larger than 3,000 SF has increased from 19% to 30% of new homes, according to Disruption Demographics, a recent report by real estate advisory company RCLCO.

Since mega-size homes go against the trend of shrinking household size, new home production appears to be moving in the opposite direction of U.S. demographics, according to the RCLCO report.

Increase in Non-Traditional Households

Demand for medium-priced homes is currently coming from two major classes: baby boomers and millennials. Married households without children and single households are expected to account for 69% of household growth in the next 10 years.

Baby boomers, with assets and established purchasing power, are beginning to downsize, and now seek smaller solutions that are flexible and modern. This group is an important customer for the home market since they will likely use their current home value to purchase another home.

Millennials, while still building their earning power, are capable of entering the home market but developers will need to properly align home products with prices to meet this demand, the RCLCO report states.  Compared with prior generations, millennials are having fewer children, driving average household size down.

If the needs of these two buyers are not addressed, the size of the new housing market could decline, experts say

What Do These Buyers Want?

Consumer preferences have changed in the past decade. While the detached, single-family home remains the most desirable product, at least 15% of buyers would now consider an attached townhouse or plex product.

Both boomers and millennials want to be close to activity and mixed-use development, such as shopping, services, jobs, shared open space and a walkable neighborhood.

Older buyers in particular are attracted to master-planned communities for the sense of community, safety and maintenance services.

Also, in demand are open floor plans that meld multiple rooms. While entertaining, guests in the kitchen can see guests in the living room, a system that requires design continuity that interconnects the spaces.

The dining room, which has been less pronounced in recent construction, is coming back but without the formality. Today’s dining rooms are comfortable and friendly, with perhaps a comfortable, well-lit adjoining living space.

Wall-free interiors first became popular in the 1970s, representing freedom from the succession of small rooms often found in older New England homes.

While it remains a popular concept, there is some indication that buyers wouldn’t mind a few privacy walls here and there. “Buyers are moving away from uninterrupted views,” Boston real estate agent Loren Larsen told the Boston Globe in March. Some spaces, some items, deserve a little privacy.

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Daly Appraisal Newsletter - Vol 6

Appraisal Insights

Welcome to the sixth issue of Appraisal Insights! We've launched this newsletter to share customer stories and illustrate the power of real estate appraisals to provide valuable property and market insights.
Recent appraisals that we’ve written or are working on include:
*A mixed use building in East Boston with a ground level restaurant and apartments above.
*A group home in Wilbraham.
*An office condo in North Andover near Merrimack College.
*An industrial warehouse in Woburn.
*A retail store strip in Somerville.
*An office condo in South Boston.
*A retail building under construction in Greenfield.
*A mixed use building in Lowell with a ground level laundromat and 10 apartments above.

Boston's Changing Face: The picture above, taken circa 1968, is the marquee for South Boston's Broadway Theater. The long vacant building is being developed into 42 condominiums or apartments. Plans include a shared roof deck and 42 underground parking spaces. The back portion of the building along Athens Street has been demolished and is being replaced with a six-story, 44,000-square-foot addition. The old theater's lobby will reportedly become a lobby for the complex.

Featured Article

Micro-Housing:

Changing the Way Cities are Organized

By Linda Sakelaris, Staff Writer
Plans to create micro apartments and other new housing options in Boston could pick up steam if area zoning uncertainties are addressed.
The Boston real estate market is poised to embrace innovative “compact” living spaces now being constructed throughout the country. However, the patchwork of variable zoning regulations in towns and cities throughout the area makes development difficult.
Municipalities “have been over-restricting housing development relative to need,” according to a recent report by the Massachusetts Smart Growth Alliance and six other organizations, which surveyed multi-family zoning activity for 100 Boston-area municipalities.
By 2030, as many as 50,000 new residents are expected to enter Boston, a city already experiencing an affordable housing shortage. City planners intend to handle the influx by creating 69,000 new housing units, in part by redesigning existing dense structures to form smaller, micro apartment units.
To accommodate this vision, the city has lifted its square-foot minimum mandates. Studios can now be under 450 square feet (SF), one-bedrooms under 625 SF and two-bedrooms under 850 SF. Boston launched a compact living pilot program in November to show that with the proper design, a 1,000-foot two-bedroom unit could be comfortably reduced to 600 SF, according to program plans.
Development has been stymied in part by zoning laws. Currently, Massachusetts lawmakers are examining a century-old state law that requires a two-thirds vote of a municipal body to authorize zoning changes. Proponents of the existing law say it too easily allows a vocal minority to block a project, and seek instead a simple majority vote. Other politicians fear that with a simple majority method, towns would build luxury and market-rate housing rather than affordable housing.
Developers, meanwhile, are looking for a coordinated approach among city, state and community leaders on zoning, permitting, and other regulatory matters before going live with this new national trend.

The Village Concept

Micro apartments, many of which will be leased, not only provide affordable housing, with access to transit, amenities and other city offerings, but also represent the 21st century “village” housing approach. Developments will include community space such as lounges, laundry facilities, study areas, gyms, and rooftop gardens.
The village concept meshes with the recent change in civilization, points out a study in Sweden. Two key factors are driving the future: digitalization and urbanization. Urban areas attract a large number of young workers, which have dense electronic social and professional networks. These residents do not seek large housing, but are more influenced by on-demand transportation, delivery services, open spaces, and other urban offerings. Older Americans shedding single-family homes are also expected to be drawn into urban micro units.
This change in resident demand will change the way cities are organized, states the Swedish study, which was produced by the Royal Institute of Technology and the Department of Real Estate and Construction Management. Micro unit apartments are often furnished by the developer or landlord with space-savers such as Murphy beds and convertible seating. Use of modular design and panelized construction could help reduce cost. The theory behind the micro unit is that personal space is minimized without reducing livability and shared community space fosters more personal connectivity.

Micro Units

Developer & Investor Point of View

Developers and investors are interested in micro units for several reasons:
· Units are generally established in prime urban locations in cities like Boston, where the tech industry attracts the millennial workforce.
· Demand for micro apartments is expected to be strong from young professionals as well as empty nesters. Micro units are increasingly used by tourists as Airbnb rentals, a positive factor for a tourist-rich city like Boston. Overall occupancy rates could be stable.
· Square-foot rental rates for micro-units can be higher than for traditional apartments, resulting in attractive yields.
· For redesign developers, expansion of the existing number of units can maximize per-square-foot profitability.
· For investors, financing for micro-units can be hard to obtain due to the small size of the unit. A large down payment may be needed, according to Mashvisor.
· Micro units have become attractive for new investors, who can get in for less money. Also, two micro units could be purchased for the price of a single traditional property, spreading the risk across multiple rentals.
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