This post provides a “cheat sheet,” and recap of a ‘Bisnow’ event highlighting key points made by esteemed panelists.The event was moderated by Douglas Howe of Mintz Levin.
On the morning of December 16, 2014, Starbucks Coffee was poured and continental breakfasts were provided as professionally dressed ladies and gents networked in a bustling Back Bay Sheraton conference room. Enthusiastic emcees introduced a stage of one opening speaker and six panelists, each boasting impressive credentials that would allow them to illuminate a room full of eager real estate enthusiasts. They reminded us of why it’s great to be a Bostonian as 2015 fast approaches.
John Barros, Chief of Economic Development for the City of Boston, was the opening speaker for Wednesday’s discussion. He set the tone by noting the significant growth in Boston’s economy over the last two years, sending a message loud and clear: this is the time to start an endeavor and sustain investments in Boston. He reported that:
- Luxury housing projects are expected to grow by 80 percent in the coming year.
- Greater Boston’s landscape of colleges and universities are at the helm of student housing expansion, with Emerson College alone planning to increase theirs by 35 percent.
- Nightlife and hospitality are on the rise to accommodate the high retention rate of college graduates.
- Foreign investment is pouring in for the advancement of life science research.
- Adding to the excitement is the possibility of the Olympics coming to Boston in 2024.
- The city is buzzing with talks of big changes in transportation and infrastructure.
When it was the panelists’ turn to speak, each offered his account of why 2015 will be an exciting time to make moves on commercial, industrial, institutional and high-end residential real estate. The general sense of optimism was echoed from Barros’ speech as David Greaney, President of Synergy Investments, lauded the massive changes in infrastructure that had occurred in Boston since he had moved there from Ireland 20 years ago.
Richard L. Friedman, President and CEO of Carpenter & Company, noted that the Seaport District in particular is seeing a lot of foreign investment, especially from Chinese investors. Mr. Friedman, whose development specialty is the hospitality sector, could attest that the latter group spends a lot of money, often directed into new hotels.
In addition, James E. Rooney, Executive Director of the Massachusetts Convention Center Authority, reminded us of Governor Deval Patrick’s July 29 signed legislation allowing for the expansion of the Boston Convention & Exhibition Center in the South Boston Waterfront. This $2 billion, 1.3 million-square-foot expansion will attract hotels, parking garages, and other projects that can contribute to the vitality of Boston’s growing “Innovation District,” Rooney said.
Boston’s strong position as a leader in higher education and health sciences is being challenged by New York City’s new science facilities at Columbia University. However, according to Jason S. Weissman, founder of Boston Realty Advisors, Boston continues to attract foreign investment in life sciences and technology with less exposure to a downturn in government spending.
Cambridge’s innovation centers, particularly Kendall Square, were brought up by Thomas O’Brien, Founding Partner and Managing Director of the HYM Investment Group, as examples of what can happen when international investment and capital are applied. MIT and its surrounding tech companies attract worldwide investors, and the area is seeing growth in high-end residences and fashionable eateries, which helps the area retain more young professionals. Kendall Square’s gritty past is a faded memory as its reputation as an innovation cluster provides the foundation for a sustained (bio)tech boom. The Seaport “Innovation” District has similar growth potential.
These optimistic projections are not met without some skepticism. For instance, how will all Bostonians, including middle-to-low-income residents, benefit in this hypercompetitive, expansive marketplace?
Mr. Barros mentioned that Mayor Marty Walsh is trying to counteract the spikes in rent and luxury housing by spearheading the Housing Innovation Lab, a team funded in part by a $1.35 million grant from Bloomberg Philanthropies. (Boston was one of 12 cities to receive the grant.) Mr. Walsh plans to apply this grant toward his announced transit-oriented “Growth Zones,” which will help build 53,000 more affordable housing units along the MBTA’s Red Line on Dorchester Avenue in South Boston and along its Orange Line on the Southwest Corridor through Roxbury and Jamaica Plain. With the working 20- and 30-something demographic continuing to grow, the mayor sees the accommodation of this group as an opportunity, rather than a hindrance, to Boston’s economic boom.
Investing in Millennial Bostonians of varying socioeconomic levels will allow emerging professionals to stay in the city. Foreign investment and capital is taking Boston far in its developmental process, helping to cultivate a livelihood for the very market the city hopes to retain. We need to ensure that a bigger and better Boston should be available for all generations.
Thanks to Bisnow and the panelists for an inspiring, thought-provoking discussion.
Quick Panelist Bios:
John Barros (opening remarks), Chief of Economic Development of the City of Boston.
As the City of Boston’s Chief of Economic Development, Mr. Barros is responsible for spurring growth in all neighborhoods across the city and providing oversight of the Boston Redevelopment Authority. He has also been Executive Director of the Dudley Street Neighborhood Initiative (DSNI), a nonprofit community-based planning and organizing entity rooted in Roxbury and North Dorchester.
Richard Friedman, President and CEO of Carpenter & Company.
As President and CEO of Carpenter & Company, Mr. Friedman has an impressive portfolio befitting his rich experience developing hotels and mixed-use projects since the early 1970s. They include Boston’s Liberty Hotel, the St. Regis in San Francisco, the 293-guestroom Charles Hotel in Cambridge, the Brookline Marriott Courtyard, and Hyatt hotels in Cambridge and in Princeton, New Jersey.
David Greaney, President of Synergy Investments
Mr. Greaney emigrated from Ireland and presides over Synergy Investments, a Boston-based real estate investment firm that owns and operates 31 Boston-area buildings comprising approximately 3.5 million square feet. He has received numerous awards in his career, and is a board member of the Massachusetts chapter of the National Association of Industrial and Office Properties (NAIOP), the Downtown Business Improvement District, and the Downtown North Association.
Douglas Howe (Moderator), Member of Mintz Levin
Mr. Howe is a member of Mintz Levin’s Corporate & Securities Practice and Immigration Practice. On the corporate side, he focuses on private offerings and related securities work. In immigration law, he represents corporate, institutional and individual clients in routine and complex immigration matters. Mr. Howe also has experience counseling high net worth individuals on all aspects of the US visa process, dual nationality, expatriation from the United States, and green card relinquishment.
Thomas O’Brien, Founding Partner and Managing Director of HYM Investment Group, LLC
Prior to his position as Founding Partner and Managing Director of HYM Investment Group, LLC, Mr. O’Brien was a Managing Partner for JPI and a Managing Director for Tishman Speyer in Boston and New York. His rich history in management also includes serving as Chairman of The Greater Boston Real Estate Board, which led to his current service on the Board of the Taubman Center for State and Local Government at Harvard University.
James Rooney, Executive Director of Massachusetts Convention Center Authority
The Massachusetts Convention Center Authority oversees the Boston Convention & Exhibition Center, the John B. Hynes Veterans Memorial Convention Center in Boston’s Back Bay, the 1,350-space Boston Common Parking Garage, and the MassMutual Center in Springfield. In Mr. Rooney’s role as Executive Director, he supervises a $60 million annual operating budget, a $23 million annual capital program, and about 210 employees.
Jason S. Weissman, Founder of Boston Realty Advisors
With experience in all aspects of real estate, including residential brokerage, residential project marketing, office, retail, student housing and medical, Mr. Weissman now enjoys leading strategic direction across all of Boston Realty Advisors’ divisions. He has worked with corporate real estate users, developers and banking institutions, and is experienced in all aspects of the real estate development and marketing process.
Important links:
http://www.bostonmagazine.com/news/article/2014/09/30/chinese-real-estate-boston/
http://m.wgbhnews.org/?utm_referrer=https%3A%2F%2Fwww.google.com%2F#mobile/11781
