Typical balcony.
We identified the opportunity for condominium conversions upon the cessation of rent control in Cambridge, MA and were one of the first developers to engage in this strategy.
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The Opportunity for Differentiation
Rent control ended in the Boston area. We quickly realized an arbitrage on income producing property and began converting multi-family buildings to high end condominiums.
36 Tremont, Cambridge, MA
The project required extensive renovations on the exterior and interior of the building.
- Purchased multi-family apartment building in August 1999 for $103 per square foot
- Converted to condominiums in 2000
- Sold all units by September 2000 with an average sale price of $306,000 or $300 per square foot
- Realized IRR of 112%
248 Putnam Avenue, Cambridge, MA
The project required extensive renovations on the exterior and interior of the building.
- Purchased multi-family apartment building in March 1999 for $107 per square foot
- Converted building to condominiums in 2000
- Sold all units by July 2000 at an average sales price of $271,000, or $290 per square foot
- Realized IRR of 59%
3 Florence Street , Cambridge, MA
The project required extensive renovations on the exterior and interior of the building.
- Purchased multi-family apartment building in July 1997 for $96 per square foot
- Converted to condos in 1998
- Rented building throughout project
- Sold units in 1998 & 1999 for an average price of $242,000, or $186 per square foot
- Entire sellout by July 2000
- Realized IRR of 68%
7 Florence Street, Cambridge, MA
- Purchased multi-unit apartment building in June 2002
- Operated the building as an apartment complex into 2003
- Resolved complex tenant issues during the project
- Began a complete gut rehab in February 2003
- Completed renovations in December 2003
- Obtained approvals to convert to condominiums in January 2004
- Closed escrow upon 2/3 of the building in April 2004
- Entire sellout anticipated in July, 2004 (all remaining units are
under contract)
Total Sales proceeds, $2.1 million
Total Profit $600K
ROI almost 100%
15 Upland Road , Cambridge, MA
The project required extensive renovations on the exterior and interior of the building.
- Purchased multi-family apartment building in May 1999 for $154 per square foot
- Converted building to condominiums in 2000 and sold 16% of units that year
- Rented balance of units thru spring of 2001
- Achieved rents of $2500 per month, or $3.03 per square foot per month
- Sold balance of units by April 2001 for an average price of $328,500, or $348 per square foot
- Realized IRR of 41%
62 Prospect, Cambridge, MA
- Purchased two multi-family apartment buildings in August 1999 for $111 per square foot
- Sold entire parcel in June 2000 for $162 per square foot
- Realized IRR of 59%
125-A Magazine, Cambridge, MA
At the time of acquisition, the building was in “tear down” condition and had extensive fire damage to the third floor.
- Purchased two multi-family apartment buildings on a large lot in September 1999
- Marketed one building during the acquisition escrow period, placed it under contract before initial purchase of entire project, and sold it two months after initial purchase
- Combined several units in remaining building to create two luxury attached houses of 3,800 square feet and 2,700 square feet respectively. Work is complete.
- Sold the 2,700 square foot attached home for $975,000, or $361 per square foot, in November 2001
- Currently renting the remaining unit for $6,500 per month
- Realized IRR thru sales and refinancing = $41%
- Unrealized IRR (based upon 2001 bank appraisal) = $51%
125-B Magazine, Cambridge, MA
At the time of acquisition, the building was in “tear down” condition and had extensive fire damage to the third floor.
- Purchased two multi-family apartment buildings on a large lot in September 1999
- Marketed one building during the acquisition escrow period, placed it under contract before initial purchase of entire project, and sold it two months after initial purchase
- Combined several units in remaining building to create two luxury attached houses of 3,800 square feet and 2,700 square feet respectively. Work is complete.
- Sold the 2,700 square foot attached home for $975,000, or $361 per square foot, in November 2001
- Currently renting the remaining unit for $6,500 per month
- Realized IRR thru sales and refinancing = $41%
- Unrealized IRR (based upon 2001 bank appraisal) = $51%
10-12 Worcester, Cambridge, MA
- Purchased multi-family apartment building on a large lot in November 2000 for $104 per square foot
- Converted to condominiums and sold half of units in 2001
Rented in 2001 and 2002 - Sold balance of units by April 2002
- Average condo sale price was $346,000 or $277 per square foot
- Realized IRR of 93% +