415 Cumberland Farms stores bought by UK-based investment group
415 Cumberland Farms stores have been bought by a UK-based investment group, the Patriot Ledger reports. Locations for this deal include Rhode Island, Massachusetts, New York and Florida.This is a sale-leaseback deal, which means the buyer, Realty Income, owns the land and buildings, but leases the buildings back to the company operating the stores. That operator is EG Group, which sold the stores to Realty Income.
High home prices don't equal a homebuying boom this Spring
Spring is often considered the peak homebuying season and sellers who can, wait until Spring to list their houses, knowing they'll usually get a higher price and faster sale.Not this year. According to Larry Edelman of the Boston Globe, 2023 marked the slowest May for condo sales since 2015 and the slowest May for home sales since 2011, at least in Greater Boston.The average interest rate on residential mortgages was 6.5%, which certainly is making some buyers consider waiting, and for sellers who will need a mortgage to get into a new home, they don't want to trade a 3% rate for double that.In May, median sales prices dropped by 2%, for the first time in a long time. Inventory is starting to rise, so perhaps a Summer upswing will come.
Holyoke's cannabis industry moving from big players to smaller craft businesses
Holyoke has many vacant big, solid old warehouse and manufacturing buildings, excellent infrastructure with municipal hydroelectric and gas service, freight train service right through the industrial district, and is minutes from I-91. Many blue-collar workers live in the city and it sits along the "Knowledge Corridor" of colleges and universities with their researchers and such.Holyoke is also a "Gateway City" which gives it priority status for all sorts of economic development grants and initiatives funded by the state.And yet... Holyoke has gone through many things billed as the answer to the city's economic depression off the ground. Take the cannabis industry. When recreational marijuana became legal in Mass, Holyoke actively courted businesses to set up shop in the city, and many businesses took Holyoke up on the offer.In a recent MassLive article, Aaron Vega, the city's director of planning and economic development (and former state representative) says that the city issued 36 special permits related to growing and selling marijuana and today only 10 companies are in business.This isn't just a Holyoke problem. Massachusetts was the first state in the region to legalize recreational marijuana, so big cannabis grow/sell operations flocked to the state and set up shop. As Connecticut, Vermont, New York and Rhode Island all made retail marijuana legal, Massachusetts stopped being a destination for legal pot and the cost of the product has dropped - a lot. An ounce of cannabis flower sold for $400 in 2021 and is now priced at $170.Statewide, gross sales revenue from cannabis sales since November 2018 has been $4.5 billion and the amount to cities and towns has been $912 million, which is terrific overall and which has brought real revenue into municipalities such as Holyoke - which collected $3.75 million in cannabis impact fees and which is expected to net $590,000 in 2024 from the cannabis sales tax. And lots more went to the state - $165.3 million this fiscal year, most of which goes to the Bureau of Addiction Services and is supposed to fund housing and recovery services for people with substance addictions. You can read the 2023 Cannabis Control Board's annual report here.As a result of the growing competition and regional availability, according to the Boston Globe, individual operators are seeing their profits plummet, even as the overall "pot pie" continues to grow. "It's a race to the bottom," said Kobie Evans, one of the owners of Pure Oasis in Boston.Shops in Boston, Northampton, and Easthampton have gone out of business, which is a normal market correction when one product becomes oversaturated. A grow facility that wanted to open in Agawam's old Chez Joseph pulled out because they couldn't get financing. Lenders said there wasn't enough potential return.Holyoke, however, didn't just plan on retail sales. The city issued permits for several indoor grow facilities, one of which said it would "supply the whole Northeast" but few of those remain today.Pleasantrees bought the old Sonoco packaging plant at 111 Mosher Street in 2020 and never built it out. They closed their Easthampton retail shop and sold the Holyoke property to investors in 2023 for a profit of $2 million. The new investors are betting that they will lease the site out for manufacturing or warehouse space. With industrial space now leasing for $7/SF, it's hard to see how the investors will recoup their investment.Rebecca Rivera, a broker with B&B Real Estate said investors today are looking to convert industrial space to residential. One such deal, which has been a long time in the making, is happening at 216 Appleton Street. Winn Development, favorite of historic preservationists for their sensitive work with old buildings, is converting the former Farr-Alpaca Mills into a 55+ affordable housing project which will contain 88 one and two-bedroom age and income restricted units. The project is estimated to come in at $35 million. Winn is accessing affordable housing tax credits, Gateway City funding, and MassDevelopment money along with a conventional loan from Bank of America.Trulieve was one of the first to invest in Holyoke for a grow site. They bought the massive block of mills at 56 Canal Street (most recently home to Conklin Office Furniture) for $3.2 million in 2019. They invested about $30 million in outfitting the building as a growing facility, which included installing steel supports for the heavy equipment in use. In addition to a growing operation, they offered testing and packaging.In 2022, a 27-year-old employee died at the Trulieve plant and the Florida-based company with facilities nationwide paid a $14,000 fine to OSHA for safety violations that resulted in her death. In 2023, Trulieve announced that it was closing all wholesale operations in Nevada, several retail operations in California, and the growing operation in Holyoke.Aaron Vega says that Trulieve is going to spend six months trying to find another cannabis grower to take the space and after that it will go on the market. Trulieve seems to be doing fine overall, with a reported $1.24 billion revenue in 2022 and new shops and facilities opening in other states.Around the corner at 1 Cabot Street, a Pot Mall is being built that will be a co-working space for small marijuana businesses that can share some of the major expenses that make the barrier to entry too high for small businesses.The mill is being redeveloped by owner Thomas J. Cusano and Sweitzer Construction. Cusano also owns mills in Turners Falls and Rochester, NH. If the Holyoke venture is successful, he'll replicate the plan in those locations.An employee who was laid off from Trulieve as it closed up shop said the profit in the business is now from small, craft growers, much like in the craft beer business.With Trulieve gone, there are still two cultivators (GTI and Milltown), four retailers, and one testing lab in Holyoke.
What to do if you find a bear in your yard?
If you are in your house and you see a bear in your yard or on your road, Mass Fish and Wildlife say "let it be." Keep your dog under control, go inside, and take some photos to impress your friends. You may want to take down bird feeders and secure trash cans if you have seen a bear (once the bear has moved on) because they're looking for food.The only bears we have in Massachusetts are black bears, which are pretty non-threatening when left alone, and this is especially true for solo bears.If you see a mother and cubs, however, be alert and back yourself out of range.
Reorganization of Boston Public Schools Coming
The Boston Globe has written a detailed story outlining Mayor Wu and Superintendent Cindy Skipper's plan to reorganize the city's public high schools, which would create more access to college-level classes and social services.Read story here: New School Plan
Putting the Ritz on top of South Station
A 51-story skyscraper is being built on top of South Station. It will feature 166 luxury condos carrying the Ritz-Carlton brand, and 685,000 SF of Class A office space on the lower levels. The 36th floor will have a pool and a terrace where tenants can grill outdoors.According to the managing director, as quoted in the Boston Globe, there is a waiting list for the residential units, although sales don't begin until Fall of 2023.The project is expected to be completed in 2025. As yet, there are no office leases. However, the Boston office market craves the new - while older and Class B space is struggling to get or keep tenants, the newest, most fully-appointed Class A space is doing just fine. Sitting on top of South Station is certainly a plus.Read a PDF of the Globe article here: High atop South Station
Short-term rentals on the Cape may have maxed out the market
A recent article in the Boston Globe details the falling demand for short-term rentals (AirBnBs, VRBOs) on the Cape. Possible causes? Oversaturation of supply, prices too darn high, a strong dollar making a trip to Italy more appealing, $45 lobster rolls and long waits for everything (due to the lack of service workforce).The upside is many hosts are slashing prices, so last minute travelers can get a deal.Read the whole article here: On Cape Cod
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.
Worker co-ops: A way for small business to outlive their founders
The Boston Globe reports on small Massachusetts-based businesses that are becoming worker owned co-ops as their founders retire; (read a PDF of the article here: Worker Co-ops).Small businesses, especially sole proprietorships, don't necessarily outlive their owners unless a succession plan is in place. Without family members interested in taking on the business, many simply go out of business when the founder/owner retires or dies.An alternative is to structure an employee buy-out that lets the employees form a co-operative ownership model. The Mass Center for Employee Ownership (MassCEO) says there are currently 57 co-operative employee owned businesses in the state and they are largely clustered in Boston and the Connecticut River Valley.There is currently a bill in committee (House 2962) that would offer tax breaks to business owners to sell to their employees and Boston gives co-ops priority status for the SPACE grant program trying to fill empty storefronts in the city.
John Chesto is finding it hard to buy a soda in Downtown Boston
Boston Globe reporter John Chesto wrote a story about how easy it was to grab a Diet Coke (and other similar healthy snacks) from convenience stores, mini-marts and CVSs pre-pandemic and how it has now become nearly impossible. Read the full story here: Downtown has lost foot traffic. What's nextThe Downtown Financial District sent everyone to work from home during peak pandemic times and many workers stayed there. Most office towers are only about 50% occupied Tuesday - Thursday (less on Mondays and Fridays) and without those workers, the small shops that rely on foot-traffic for impulse buys (like that can of Coke) or for convenient services near the office (tailor, dry cleaner, cobbler) have closed or are struggling.Christo reports that that there is a perception that Downtown Boston is less safe now - even though crime stats don't show that - and he thinks it's because there are fewer people around.One idea to get more "boots on the ground" is to turn some office space into residential space, but that's more of an urban planner's dream than a developer's reality (and zero developers have proposed doing it so far) because it's just such a heavy lift without financial incentives from the city. The Mayor's office, City Council and BID are all looking into ways to change the zoning and entice developers.
Hub beaches: Technology eases parking woes
A recent article in the Boston Globe lists several iPhone technology solutions for parking at Massachusetts beaches, which are often fraught with long lines.Crane Beach in Ipswich (owned by the Trustees of Reservations) allows people to buy day passes on Monday and Thursday.Hull's Nantasket Beach (operated by Mass Dept of Conservation & Recreation) uses the Yodel app.And Gloucester, the main focus of the Globe article, uses the Blinkay app, which allows for advance reservations.You can read the whole article here: No more sweating a parking spot at the beach in Gloucester
Ocean temps rising to unprecedented levels
Boston Globe coverage reports that the world's oceans are heating up. The North Atlantic, near Europe and northern Africa, is the hottest.Scientists believe this is due to the El Nino/La Nina transition that is happening. Whatever the cause, the warmer water is expected to make sea ice melt faster (which makes sea levels rise) and may alter the jet stream, causing bigger and stronger hurricanes.Read about it on the Boston Globe here: Nothing like this has ever happened before
AirBnB News: Quincy and homeowners at odds over short-term rentals
Quincy has had zoning ordinances on the books since March 2021 to regulate short-term rentals (STR) and is currently in court with the owners of two STRs that flaunted the ordinances.STRs are not allowed in neighborhoods zoned RA and no STRs are allowed in any neighborhood if the owner does not live on site.One STR owner (who lives in West Roxbury, violation one of not living on-site) owns a home at 153 Bayside Road in the beach-side Squantum neighborhood, zoned Residence A (violation two). The city has been sending him cease and desist letters and levvying fines (all unpaid) since June of 2021. The place rents for $2,000 per night and has numerous complaints about noise and parkin violations.The other owner is at 33-35 High Street in the South Quincy neighborhood and appears to live on-site, but it is also zoned Residence A. The city has been sending him cease and desist letters since July 2022.In addition to these two rentals, the city is "pursuing 89 landlords of short-term rentals who are violating zoning ordinances" according to a recent article in the Patriot Ledger According to the PL article, 65 STRs have stopped operating as a result of the zoning ordinances and 13 STRs located in Residence A zones are in the process of going to court.
If you're not making $42/hr, you probably can't afford to live in Massachusetts
The Boston Globe reports (PDF: Hard to rent in Mass) that a household income of over $86,000 per year ($41.61/hr) is what you need to rent a two-bedroom apartment in Massachusetts, according to the National Low Income Housing Coalition's annual report on housing affordability. And that's $4 more per hour than last year.The Globe says "The state is a hub for jobs, education and innovation, but living here, especially for renters, costs ever more and is stretching even moderate earners to the limit."Although housing prices have surged, starting before the pandemic but then exacerbated by it, wages have not risen very much at all, which means those earning less will continue to fall further and further behind the higher-wage earners.As all stories about the housing crunch seem to conclude, the answer is to build more housing.
Interest rates hold steady for now
On June 14, 2023, the Fed decided not to raise interest rates for now, but indicated it will probably raise it again two more times later this year, according to the Associated Press. Mortgage and other lending rates will hold steady for now.
Downtown Springfield's Busy Weekends Bring in Tourist Dollars
Some large summer events have drown crowds back to Downtown Springfield, as a recent MassLive article recounts. A recent Ironman Triathlon brought 1,400 competitors and two to three times that many spectators. Many of them stayed locally and lots of them ate locally. A June 3 Pride Parade drew big crowds, as did recent shows by Bruno Mars and Tina Fey and Amy Poehler.Upcoming events, such as Hooplandia at the Big E and a Lego Fan Expo at the Mass Mutual Center in August, are also expected to draw large crowds downtown.How much of an economic impact do these events have and how is it measured? The Visitors and Convention Bureau estimates impacts by gathering data from hotels, bars and restaurants and also analyzes cellphone data to figure it out. The estimate for Ironman is $3-$7 million and Hooplandia is expected to bring in around $5 million.Both of those events are happening for the first time and organizers hope they will both become annual events. If so, they will demonstrate to others that Springfield can handle the crowds and provide entertainment and food for those who come.
Greater Boston: Bidding wars for apartment rentals
Who would offer to pay extra rent for an apartment? Turns out, quite a few people desperate to find a place to live in Boston and environs. A Boston Globe article: Now there are bidding wars for Boston area apartments shares the story of two working professionals who were looking to rent a not-so-great two-bedroom apartment a 20 minute walk from the Orange Line station in Malden for $2,200 a month.The $2,200 rent was a stretch and they planned to keep the heat low (because that $2200 didn't include heat). The couple put in an application and got a message from the broker telling them to make an offer above the published rent. They put in an offer of $100 per month over the rent and were beat out by other prospective tenants.The article details how common this practice has become - especially near T stations.
Movie Being Shot in Downtown Springfield
A complex crime thriller about the father of a kidnapped child searching for his son is shooting in Downtown Springfield.The movie will be called "Barron's Cove" and will star Stephen Lang and Brittany Snow, who have been visiting local restaurants when the cameras aren't rolling.Read the whole article on MassLive, including a video snippet of the filming process.It's been a while since a Hollywood movie was shot in Springfield - "The Reincarnation of Peter Proud", released in 1975 is the most well-known movie with local footage.Other local towns have been the site for big films, such as "Cider House Rules" (around the Berkshires), "Who's Afraid of Virginia Woolf" (Smith College and Northampton), "The Judge" (Shelburne and Sunderland), and "Malice" (Smith College, Amherst and Holyoke),
Biologists preserve terns on island off Cape Cod
Warning - if you are skeeved out by the idea of having your eyes pecked out or having all of your clothes covered in bird poo, don't read the full article from the Boston Globe about Bird Island in Buzzard's Bay, but if not, read about Bird Island here. It's a sanctuary for terns, and a scary and gross place for humans.
July 2020 was the moment when the housing market went crazy
An in-depth report on BusinessInsider.com concluded that July of 2020 was the moment when the housing market went crazy, resulting in a housing market of haves and have-nots.People who were able to buy homes before July 2020 got in before prices and mortgage rates skyrocketed and those who didn't either bought a home that was more than they intended to spend and may have gotten a mortgage at a rate double of what was available until September 2022. Rental costs have soared during this period, so those unlucky potential buyers who were priced out of the market were less able to save, since their rent prices kept rising too.Another result of the high prices and high lending rates is that the availability of homes for sale is rock bottom, as the chart below shows: But the lucky ones who do own homes now have record high amounts of equity, due to those rising prices. As of March 2023, the typical homeowner with a mortgage had about $185,102 in "tappable equity" (the amount they could borrow while still keeping a 20% investment in the home). That figure is 54% higher than March 2023.Pity the renters who are not seeing wealth gains and who, for the first time in 25 years, now have to pay more than 30% of their income to rent an average apartment. The HUD definition of affordable is 30% of your income for all housing costs (including utilities), so paying more than 30% just for rent shows how unaffordable life is for renters. And if you did manage to buy a home after July 2020, you got much less home for your buck. A $300,000 house went from occupying 1,800 SF before that dreadful date to about 1,300 SF today.For people who missed out on the wealth building that happened during the pandemic, the negative effects are expected to endure. Millennials (aged 27 - 42) are in the peak years of earning, starting a family, and contributing to society. Yet they are living longer with their parents (or with roommates), which means they become parents later. Combined with having less wealth and less ability to buy homes, the non-property owning Millennials are falling behind in all areas of economic gains.