HIGH GROWTH NEIGHBORHOOD
In the past five years, South Boston residential condominiums have increased in value over 61% and the weighted average based upon square feet has increased over 125%. This submarket has experienced unprecedented growth which will continue as development persists and company migration to South Boston increases. The rapid neighborhood growth has increased demand from both local and national tenants thus creating an 18% delta between the in-place rents and the current market rents.
URBAN CORE OFFERING
Retail tenant demand in South Boston is rapidly growing and is expected to continue as the submarket matures creating significant rental rate increases. Foodie’s South Boston Market, Starbucks, Caffe Nero, American Provisions, and Wingstop are among some of the newest tenants opening throughout the red hot South Boston submarket. Additionally, Seaport’s development boom has attracted world class tenants such as Equinox, Kings Bowling, Showplace Cinema, by Chloe, and Soul Cycle.
More than $20 billion in investments have fueled over 1.5 million square feet of completed development with an additional 2 million square feet under construction or slated for future development. The construction boom has had major impacts on attracting best in class retailers to the submarket which has significantly pushed rents higher year-over-year.
GE’s corporate relocation to the submarket has put South Boston on the international map for all retailers to join GE for the long-term growth happening in the neighborhood. Their relocation solidifies Boston as one of the most important innovation hubs in the country. GE’s decision will have long lasting effects that will continue to grow Boston’s business economy, talent pool, and connections with the world.
STRENGTH & STABILITY
The Collection offers long-term income stability as the properties are fully occupied for over 8 years with rental increases throughout the terms. Additionally, Dedham Savings is a credit tenant that has been fully FDIC insurance since 1982 in a location which their use is grandfathered-in.
100% occupied with over 8 years left of average lease term at 28% below current market rates. As national tenants continue to migrate into South Boston, quality retail storefront demand has significantly increases causing rental rates to rapidly rise.
Boston Realty Advisors is pleased to present an exceptional opportunity to acquire the East Broadway Collection, a 100% occupied storefront retail portfolio in Boston’s red hot South Boston neighborhood. Totaling 4,758 square feet, the collection is anchored by Dedham Savings, which maintains assets in excess of $1.33 billion.
This retail collection, located in the heart of the urban core with credit tenancy, lends itself well to all of the qualities and attributes of a core plus offering: long-term stability, below market leases, newly renovated and a high growth market.
Situated at 624-632 and 636 East Broadway Street, the East Broadway Collection has a weighted average remaining lease term of over 8 years offering investors income stability in one of Boston’s most rapidly appreciating submarkets at significantly below market rents. In addition to Dedham Savings, the tenant mix includes 6-Twelve Convenience Store and Wears + Wares clothing boutique. Solidifying the assets long-term success and rent growth, 636 East Broadway is grandfathered as a legally pre-existing non-conforming bank use in an area of Boston where, banks are not allowed by-right. Furthermore, the East Broadway Collection’s delta between in-place and market rents of 28% continues to quickly widen allowing investors the long-term opportunity for a significant increase in cash flow when able to mark-to-market.
South Boston has long been known as the thriving neighborhood for millennials but since the beginning of the Seaport construction boom, South Boston has reaped the overflow benefits of attracting international capital and development. Additionally, the relocation of General Electric’s headquarters to South Boston, whose market cap is over $320 billion, has solidified Boston as one of the most important innovation hubs in the world. The “GE Effect” will have long lasting economic, social, and demographic impacts to South Boston, specifically continuing to attract worldwide talent and capital to the city.
The East Broadway Collection is being offered as a portfolio but will consider offers on individual assets as well.