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Hyde Park developers split on whether the current economy means they should build apartments or condos
By adamg on Thu, 02/09/2023 - 9:56am
Two weeks after one developer said it wanted to change its proposed apartment building on Fairmount Avenue in Hyde Park to condos because of the current economy, another developer has filed a request to change a proposed condo building on Hyde Park Avenue from condos to apartments due to the current economy.
In a "notice of project change" filed with the BPDA yesterday, Ad Meliora says it wants to change a 151-unit building, originally to be sold as condos, to rental apartments in its proposed Residences at Readville on Hyde Park Avenue at the Father Hart/Milton Street Bridge. The project also includes a second 122-unit building that had already been slated for apartments.
The proponent is requesting to change from a homeownership/rental mix to fully rental, without any change in the total number of dwelling units ... because of the market and financing challenges impeding implementing the homeownership component.
Ad Meliora is asking the BPDA to approve the change as a minor one not needing a new round of public meetings and hearings, because while the change will require a new agreement with the city on making 23 affordable condos 23 affordable apartments, it will not otherwise change the project's impact on the surrounding area.
On Jan. 31, the Zoning Board of Appeal granted a one-year extension to he DiSipio Building Group to start construction of a 47-unit residential building on Fairmount Avenue at the bridge over the Neponset and the Fairmount Line so that it could file a similar "notice of project change" with the BPDA - but to turn what was proposed as an apartment building into a condo building.
At the board's hearing, DiSipio's attorney said a continuing soft economy and rising interest rates means condos make more financial sense.
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Comments
meanwhile nothing has been built in the last few years in HP
these two developments plus the one I remember at 1201 River Street are progressing very slowly. The Hyde is under construction but other than that, things seem to be stalled.
http://www.bostonplans.org/projects/development-projects?neighborhoodid=...
Hyde or Pryde?
If the latter, yes, the project to turn the old Rogers middle school into an LGBTQ-friendly apartment building for seniors is well under way.
But, yeah, Hyde Park doesn't seem to be a place where new projects get built quickly (well, there are also the new industrial-ish buildings where that train yard used to be in Readville, which started out as a place for "maker" startups and ended up as a place for Tesla to put a repair garage).
Pryde
Ah yes, The Pryde, not Hyde. And Hyde Park has lots of NIMBY residents that complain about any development. It took over ten years to develop 54 Williams Ave in Hyde Park.
They like to think they are
They like to think they are in a small town, not a city. I live in HP.
Current economy
Or the Mayors push for rent control. With the current interest rates it hard to argue the developer would have a larger ROI from selling the units then renting over a 5 or 10 year period.
They probably have money tied up in the project and dont want to walk away completely but also dont feel like dealing with Wu's rent control.
I see this change of heart happen more frequently in the near future.
All investments like satiability, rent control will destabilize investment in housing in the near term.
Except ...
That would seem to push developers towards condos, where they could make all their money up front and leave, but that's not what's happening with the larger of these two Hyde Park projects.
All their money????
Seeling something creates a short term return vs renting creates long term returns which are alway higher.
Also, most developers raise capital via private investment. They arent neccessarily going to BofA for a 30 years loan. So no, the economy and the dip in housing values/listing prices dont support converting to condos, but rent contol certainly does.
Though without rent control,
Though without rent control, most people in Boston will not be able to afford any apartments.
In fact, nobody could.
In fact, nobody could.
Washington DC has way cheaper rents and rent control
Washington DC has higher median income, 20% more adults with bachelors degrees, 36% of its apartments are rent controlled
And WAYYYYY cheaper rents. It also develops new properties at twice the rate of Boston.
I lived in both cities. Rent Control when done right has no impact on new development. NYC has rent control and rent stabilization… and added the entire population of Boston in ten years lmao. There are far cheaper rents available there to!
This little town has no idea what goes on in the big bad world outside.
Logically impending rent control is to blame for a developer opting to go from condos to rentals??? Like stop and make it make sense before you post it.
WAYYY Cheaper
Not at all! DC is within the top 10 while Boston is within the top 5 most expensive cities.
Take your own advise buddy!
Also dont be misleading on DC rent control and current construction. Anything built after 1975 is not subject to rent control.
https://dhcd.dc.gov/sites/default/files/dc/sites/dhcd/publication/attach...
Go to trulia
Search for apartments under 1600 in DC- then get back to me with how many there are.
It’s night and day from here
Lol the whole rent control is
Lol the whole rent control is a pipe dream, the state has to vote to allow it. Wu will go to the legislature and shake her sword and put on a show and they'll ignore her and nothing will get done. Nobody is instituting rent control when slumlords donate so generously to so many reelection campaigns.
Totally agree, although
Her just having the conversation is going to negatively impact housing in Boston in the near term. She already screwed up the Widett negotiation, now it will forever remain a waste land.
Maybe she'll start to realize she doesnt have as much power as she thinks she does when it comes to private industry. With the MBTA community rule coming into play, developers will continue to look elsewhere AND find reasonable and friendly local leaders to work with.
I guess thats the downside of electing someone whos never had a real job.
A couple of projects do not make for a trend
Granted, one can speculate about all sorts of things, ranging from the possible return of rent control to Boston to neighborhood input to market demands and surely more.
Hard realities, however follow. A few changes in plans do not make for a trend and -- far more importantly -- soaring loan interest rates, lenders insisting on higher levels of developer skin in the game, and also soaring construction costs are looking to greatly reduce new residential development for at least a year.
File under:
Lying developers who lie
File under
Situational change due do new political leadership, both locally and nationally. Elections have consequences.
Doesn’t matter
neither ne will lower the cost of housing in the Boston area like we’ve been told for the last 10 years.
Show of hands
How many people posting about this live in Hyde Park? How many live in Boston?