Mission Commonwealth – New Back Bay Development – Stratospheric Prices!
Mission Commonwealth – New Back Bay Development – Stratospheric Prices!
And Well Bought/Well Sold!
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Property Spotlight
Mission Commonwealth – New Back Bay Development – Stratospheric Prices!
Units at Mission Commonwealth, a five-unit redevelopment that is currently under construction at 260-262 Commonwealth Avenue, are now actively being marketed. Developer Chevron Partners bought the two buildings, which were previously Bay State College dormitories, back in early 2017 for $14 million. According to the developer’s website, they’re looking to get $50 million in sales out of the project, or roughly $2,600/sf.
To say that this is a gut renovation is a bit of an understatement. The only remaining elements of the original buildings are the front brick façades. The new structure will be about 19,000 square feet, about 5,000 square feet larger than the original buildings. The building will sit on a new below-grade parking garage.
Chevron Partners previously redeveloped the Little Brown and Company building at the top of Mount Vernon Street on Beacon Hill back in 2015. The quality of that 7-unit condominium conversion is about as good as it gets in the context of spec-built projects. We have no doubt that the execution on Commonwealth Avenue will be just as good.
The penthouse asking price is a bit of an eye opener. The 4,181 square foot, 4-bedroom duplex can be yours for a cool $19.995 million or $4,782/sf. That’s a $610/sf premium to the current MLS condominium price per square foot record holder – a 17th floor corner penthouse unit at 2 Commonwealth Ave (see “New Price/SF Record - Well Bought”).
The prices for the lower-level units are a bit more down to earth. Unit 2, a 2,754 square foot, 3-bedroom unit on the second floor is offered at $9.65 million or $3,504/sf (ok, maybe not really down to earth). All the units come with parking in the below grade garage.
A word of caution about these below grade parking setups. There are usually limits as to the size vehicles these garages can accommodate. In our experience with similar garages, low slung sports cars can also be problematic as they may bottom out when making the transition down the steep ramp.
We’re a little puzzled as to why the developer chose this location for such a high-end project. Don’t get us wrong, this is a good Back Bay location, but people shelling out that kind of dough would probably prefer being closer to the public garden or on the river side of Beacon Street. Additionally, the next three neighboring buildings are Berkeley College dormitories. Undergrads can make for colorful neighbors.
The real issue we see is that the property is located on the shady side of Commonwealth. Being on the shady side has less to do with how the sunlight hits the building and more to do with sharing a rear alley with Newbury Street and all the commercial activity that goes along with that. Looking out over what is essentially a large open air parking lot doesn’t scream luxury to us.
At the risk of coming across like a skunk at a lawn party, we really don’t see the wow factor with this project. The penthouse will have a 22-foot automated sliding glass door, which is very nice, but $20 million nice? That kind of money gets you into a Louisburg Square single family, or you can take your pick of most units at any of the hotel service buildings.
The construction cost here must be astronomical, and the developer has been lugging the project for about six years (the units will be ready for delivery by late this year, or early next year). We won’t get into it, but like most developers in recent years, we think they paid way too much for the underlying property.
We suspect that if the project is going to pay, the developer will need to get close to these prices. Time will tell if the Boston market has the appetite for these fancy prices.
Units at Mission Commonwealth are offered by Gibson Sotheby’s.
Well Bought/Well Sold
75 Beacon Street, unit 2 – A Beacon Hill Win/Win? – Well Sold
Unit 2, a 4,138 square foot, 4-bedroom penthouse triplex changed hands last week for $11.9 million ($2,878/sf), a 15% discount to the $13.995 million asking price. The unit comes with parking for two cars in an attached heated garage.
75 Beacon was totally renovated in 2019 as part of a two-unit condominium conversion. We normally are not big fans of triplex units, but we think that this one works. There are front and rear private walk out terraces on the top level, with an outdoor kitchen in the rear and hot tub in the front.
The stretch of Beacon Street between Charles Street and Arlington Street faces the Boston Public Garden and there’s easy access to the Esplanade. The Beacon Street side of the unit gets full sun pretty much all day long. For some people, this stretch of Beacon is a bit too busy - we happen to think it’s an outstanding location.
The seller bought the unit in 2019 for $11.4 million, so net after fees it looks like they broke even. The price seems fair to both parties, although we have a problem with buyers bailing out sellers when it comes to paying their ridiculously high commissions – particularly in what looks an all-cash deal in the current environment.
This is an outstanding apartment, and it looks like a rare win, win situation. However, passing a $476,000+/- commission on to a buyer doesn’t sit well with us, so we’re giving the advantage to the seller and calling it – Well Sold.
144 Beacon St. unit 2 – Brownstone “The Most Hideous Stone Ever Queried” – Well Bought
After 500 days on the market, unit 2 at 144 Beacon Street, a 3,970 square foot, 4-bedroom duplex finally has a new owner. The sale price came in at $5.4 million ($1,360/sf), net after fees that’s about a 21% discount to the original asking price.
This is a nice spacious unit with good celling height and a lot of original detail. As a bonus there’s parking for three cars, two in the attached garage and one outdoor space. We were a little concerned about possible settling issues that we noticed when we went through the unit, but most good inspectors should pick up on any meaningful problems.
We’re not huge fans of brownstone exteriors. We think that writer Edith Wharton had a point when she lamented that her childhood in Manhattan was “cursed with the universal chocolate-colored coating of the most hideous stone ever quarried.”
Curb appeal aside, this a great unit in a great location with an ideal parking situation. Assuming that there are no settling issues, this was – Well Bought.
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About Batterymarch Group LLC – Batterymarch Group is an independent full service real estate brokerage and advisory firm focused on the downtown Boston high-end residential market. We represent both sellers and buyers with a sharp focus on valuation. We also offer sub-advisory and owner’s representation services to financial institutions, family offices, and trustees.
About Andrew Haigney – A 25-year Wall Street veteran, Andrew held senior positions at leading global investment banking institutions where he routinely valued and negotiated complex securities transactions on behalf of institutional clients. Andrew has been an outspoken advocate of a universal fiduciary standard. In founding Batterymarch Group, Andrew brings that same discipline and passion to real estate brokerage.