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75 Proctor StreetBoston, Massachusetts
Confidential Offering Memorandum
24,000 SF URBAN INDUSTRIAL BUILDING | 0.6 ACRE SITE | TRANSIT ORIENTED
©2020 Jones Lang LaSalle IP, Inc. All rights reserved. The information contained in this document is proprietary to Jones Lang LaSalle and shall be used solely for the purposes of evaluating this proposal. All such documentation and information remains the property of Jones Lang LaSalle and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent necessary for its evaluation. It is not to be shown to any third party without the prior written authorization of Jones Lang LaSalle. All information contained herein is from sources deemed reliable; however, no representative or warranty is made as to the accuracy thereof.
CAPITAL MARKETSMichael Restivo +1 617 848 5858 [email protected]
Lenny Pierce+1 617 531 4120 [email protected]
Kellie Coveney+1 617 848 5852 [email protected]
LEASINGBen Roopenian +1 617 531 4242 [email protected]
FINANCINGMartha Nay +1 617 848 1577 [email protected]
E X E C U T I V E S U M M A R Y 1
I N V E S T M E N T H I G H L I G H T S 3
M A R K E T O V E R V I E W 9
A S S E T O V E R V I E W 1 5
CONTENTSLEASINGBen Roopenian +1 617 531 4242 [email protected]
FINANCINGMartha Nay +1 617 848 1577 [email protected]
EXECUTIVE SUMMARY
24,000 TOTAL SF
0.6 ACRES
17' CLEAR HEIGHTS
128% 5-YEAR RENT GROWTH
2.4% MARKET VACANCY
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EXECUTIVE SUMMARYAs exclusive sales agent, JLL is pleased to offer
the opportunity to acquire 75 Proctor Street in
Boston, MA (the “Property), a 24,000 square foot,
17’ clear industrial building.
Being offered vacant, the Property offers
industrial investors a rare opportunity to acquire
an asset that can immediately take advantage of
the red-hot urban industrial leasing environment
in the City of Boston. Vacancy in the Roxbury/
Dorchester Industrial Market is currently at 2.4%
and average asking rents lie at a record high of
$19 NNN, a level which represents a 128% 5-year
increase.
Additionally, 75 Proctor Street represents
a potential residential redevelopment
opportunity. The Property benefits from a
park-side location, immediate Commuter Rail
connectivity and amenitization in the form of
South Bay Shopping Center.
The Property is being offered as-is, free and clear
of any existing debt, and without an asking price.
C O N F I D E N T I A L O F F E R I N G M E M O R A N D U M
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INVESTMENT HIGHLIGHTSE
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LOGISTICS-ORIENTED LOCATION WITHIN PARK SETTINGThe property lies in the Newmarket Industrial Region of Boston, one of the few remaining industrial clusters in the urban core and one which is a central staging point for the city's distribution and warehousing needs.
INVESTMENT HIGHLIGHTS DOWNTOWNBOSTON
SEAPORT
NEWMARKETINDUSTRIAL
REGION
NEWMARKET STATION
SOUTH BAY CENTER
NORFOLK AVENUE
93
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Boston LoganInternationalAirport
Boston LoganInternationalAirportBOSTONBOSTON
REVEREREVERE
SOMERVILLESOMERVILLE
CAMBRIDGECAMBRIDGE
EverettEverett
BROOKLINEBROOKLINE
CHELSEACHELSEA
MALDENMALDEN
90
93
90
93
90
1
1
MEDFORDMEDFORD
1
1A
PLEASUREBAY
PLEASUREBAY
CHARLES RIVER
CHARLES RIVER
JAMAICAPOND
JAMAICAPOND
FRANKLINPARK
FRANKLINPARK
ARNOLDARBORETUM
ARNOLDARBORETUM
FOREST HILLSCEMETERY
FOREST HILLSCEMETERY
South BostonSouth BostonSouth Boston
EAST BOSTONEAST BOSTONCHARLESTOWNCHARLESTOWN
Back BayBack BayBack Bay
Downtown Boston
Downtown Boston
DorchesterDorchester
Jamaica PlainJamaica Plain
Dudley SquareDudley Square
MattapanMattapan
South EndSouth End
RoxburyRoxbury
RoslindaleRoslindale
Seaport DistrictSeaport DistrictSeaport District
North EndNorth EndNorth End
ROBUST MARKET FUNDAMENTALSThe Property is situated in the Roxbury-Dorchester market which currently boasts vacancy rates of 2.4%. With little to no competitive space available in the market, 75 Proctor Street is perfectly positioned to capture tenant demand.
4,700,000 SUPPLY (SF)
2.4% VACANCY (%)
$19.40 AVG. ASKING RENT (NNN)
ROxBURY-DORCHESTER WAREHOUSE/DISTRIBUTION
1
93
C O N F I D E N T I A L O F F E R I N G M E M O R A N D U M 6
INV
ES
TM
EN
T H
IGH
LIG
HT
S
Boston LoganInternationalAirport
Boston LoganInternationalAirportBOSTONBOSTON
REVEREREVERE
SOMERVILLESOMERVILLE
CAMBRIDGECAMBRIDGE
EverettEverett
BROOKLINEBROOKLINE
CHELSEACHELSEA
MALDENMALDEN
90
93
90
93
90
1
1
MEDFORDMEDFORD
1
1A
PLEASUREBAY
PLEASUREBAY
CHARLES RIVER
CHARLES RIVER
JAMAICAPOND
JAMAICAPOND
FRANKLINPARK
FRANKLINPARK
ARNOLDARBORETUM
ARNOLDARBORETUM
FOREST HILLSCEMETERY
FOREST HILLSCEMETERY
South BostonSouth BostonSouth Boston
EAST BOSTONEAST BOSTONCHARLESTOWNCHARLESTOWN
Back BayBack BayBack Bay
Downtown Boston
Downtown Boston
DorchesterDorchester
Jamaica PlainJamaica Plain
Dudley SquareDudley Square
MattapanMattapan
South EndSouth End
RoxburyRoxbury
RoslindaleRoslindale
Seaport DistrictSeaport DistrictSeaport District
North EndNorth EndNorth End
PATH OF GROWTH75 Proctor Street lies on the border of two rapidly developing neighborhoods – Roxbury and Dorchester. After adding only 375 new apartment units between 2008-2015, the region has added 1,300 units in the last 4 years with another 800 under construction. Additionally, the area has seen major mixed use developments in the form of The Beat and South Bay Center.
This wave of development has left few remaining parcels available to the market, making 75 Proctor Street all the more unique of an offering.
19 Shetland Street 57 Units
Under Construction
1258 Mass Ave 40 Units
Under Construction
Jan Karski Way Ext. 400 UnitsProposed
85 Willow Court 14 Units
Built 2019
The Andi 475 UnitsBuilt 2019
The Indigo Block 80 Units | 20 KSF Comm.
Under Construction
46 Robey Street 11 Units
Proposed
9 Leyland Street 42 Units
Proposed
706 Dudley Street 26 Units
Proposed
734 Dudley Street 20 Units
Proposed
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0.4 Mile Walk
SOUTH BAY CENTEREstablished as the first mixed-use community gathering place in Dorchester, South Bay was thoughtfully designed with the neighborhood top of mind. The pedestrian-friendly center is filled with a diverse mix of retailers and restaurants, an AMC theater, luxury residences and free parking to serve the needs of the community.
720,000 TOTAL SF
120,000 RETAIL SF
475 UNITS IN LEASE UP
130 ROOM HOTEL DELIVERING
2020
NEWMARKET STATION
C O N F I D E N T I A L O F F E R I N G M E M O R A N D U M
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BOSTON MARKET OVERVIEWBoston is the largest city in New England and ranks amongst the top cities as an economic hub globally. With over 50 premier higher education institutions anchored by MIT, Harvard, along with several world-renowned research and teaching hospitals, the Greater Boston area is a true knowledge driven economy. These higher education establishments generate thousands of graduates each year, and over 40% of these Millennial-graduates stay in the Greater Boston area. Millennials represent 35.0% of the Boston Metro population — another factor fueling E-Commerce and last-mile tenant demand for industrial distribution space throughout the market. The economy in Greater Boston is now employing more individuals today than it has in any other time in its history. Even in our current state of almost full employment across the country, Boston is outperforming with an unemployment rate of an astonishing 2.5%, over 200 basis points below the national average. Since 2010, the city has also been experiencing a boom in population growth above the U.S. average driven by a broad-based recovery across a number of industries.
Warehousing jobs specifically have been a catalyst for job growth in Massachusetts. In fact, since 2009, warehousing jobs have grown at a faster rate than professional and business services.
MARKET OVERVIEWM
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INDEx OF STATEWIDE JOB GROWTH SINCE 2009
+26%+23%
+15%
Transportation & Warehousing
All Industries
Professional & Business Services
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Consumers continue to shift their shopping habits from traditional brick and mortar retail to e-commerce. In Q2 2019 in the United States, 11 percent of all retail sales or $146 billion of goods were transacted online, which was up 4 percent quarter-over-quarter and 13 percent year-over-year. At the beginning the decade, the share of e-commerce sales were a third of the current rate, illustrating just how quickly consumer habits have changed. With this trend not only expected to continue, but accelerate, coupled with the industry delivery standard shifting from two days to same-day, retailers need to strategically locate their product near dense consumer populations.
This effect has put upward pressure on urban industrial product. Warehouse rents across Metro Boston have appreciated twice as fast as rents along I-495 over the last five years, as large retailers and logistics firms need to establish urban facilities to meet delivery expectations. Looking back at recent sale activity, there has been a frenzy of deals done within the Route 128 market as investors try and tap into this demand. Over half a billion worth of industrial “last mile” inventory has traded hands over the last 12 months.
LAST MILE MARKETM
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Retailers and logistics organizations will continue to seek warehouse and distribution space near dense urban centers as e-commerce trends accelerate in the future. This will further place a premium on industrial parks with proximity and access to cities, while possibly requiring developers to think creatively with new multi-level warehouses, cross-docking facilities and freezer/cooler space that can maximize land constrained urban areas
$8.27 $8.03 $9.06
$8.61 $8.75
$8.04
$8.93 $9.57 $9.57
$9.24 $9.48
$9.72
$11.09 $11.24
$11.57 $11.75 $11.77 $11.89 $12.21
$5.34 $5.52 $5.63 $5.69 $5.69 $5.74 $5.64 $5.84 $5.99 $5.96 $6.11 $6.31 $6.24 $6.30 $6.31 $6.47 $6.51 $6.53 $6.75
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Q42016
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Q12019
Q22019
Q32019
Industrial rents accelerating twice as fast inside Route 128
Source: JLL ResearchI nside Route 128 Rents I-495 Rents
26.4%I-495 Rent Growth
47.6%Inside of Route 128 Rent Growth
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ROXBURY-DORCHESTER WAREHOUSE/DISTRIBUTION
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Vaca
ncy
(%)
Avg.
Ask
ing
Rent
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
Avg. Asking Rent (NNN)Vacancy (%)
$19.40
AVG. ASKING RENT
$19.40/SF NNN5-YEAR INCREASE
128%AVG. VACANCY
2.4%5-YEAR DECREASE
75%
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Avg. Asking Rent (NNN)Vacancy (%)
SUPERIOR CONNECTIVITY
The Dorchester-Roxbury Market is served by both the Orange and Red Lines, which have a collective 6 stations throughout the geography, as well as two MBTA Commuter Rail lines. 75 Proctor Street is 0.3 miles from Newmarket Station along the Fairmount Line, which is the line's last stop before South Station and offers commuters an 8 minute trip to Downtown Boston.
NExT OUTER URBAN NODE
Dorchester and Roxbury are primed to be Boston’s next areas of new development. Indeed, with Edens’ South Bay Shopping Center, Samuels & Associates’ 500 unit “Dot Block” and Feldco’s 1.2 MSF “Tremont Crossing” some of the most significant developers in the city have already planted flags in the region.
ROBUST MARKET PERFORMANCE
Newly built apartment product in the Dorchester-Roxbury Market is averaging rents of $3.50/SF; pricing that is now out-pacing locations such Somerville and Everett and mirroring rates seen in West Cambridge. Newly built condos in the neighborhood have performed similarly well, with new product regularly selling out in the $500-600/SF range.
THE DORCHESTER-ROXBURY MARKET
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SITE SPECIFICATIONSLOCATION 75 Proctor Street, Boston, MA
LAND AREA ±0.60 acres
UTILITIES Electric Eversource Water & Sewer City of Boston Gas Eversource Communications Verizon
PROPERTY SPECIFICATIONS YEAR BUILT 1973
SQUARE FEET ±23,840
CLEAR HEIGHT 17'
ExTERIOR FACADE Masonry, Medal Cladding, Glass
ROOF Flat rubber membrane roof
COLUMN SPACING 40’ x 27’
PARKING SPACES 15 exterior auto spaces
LOADING Two interior loading docks (59’ depth)
BUILDING SYSTEMS ELECTRICAL 277/480 3 Phase
3 Switchgear Panels at 2000 amps each
HVAC 30 RTU’s 2-40 Tons
FIRE/LIFE SAFETY Fully Sprinklered, 6 Riser Zones, Simplex 4100U Fire Alarm Panel
EMERGENCY POWER Cummins GGHE 60KW Standby Generator for Server Room Backup
ASSET OVERVIEWA
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160’
40’
80’
27’
162’
32’
INTERIOR LOADINGTwo docks with pit levelers
FLOOR PLAN
C O N F I D E N T I A L O F F E R I N G M E M O R A N D U M
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SITE SPECIFICATIONSZONING DISTRICT Roxbury Neighborhood
SUBDISTRICT New Market IDA
SUBDISTRICT TYPE Industrial Development Area
USES Allowed General Manufacturing, Light Manufacturing, Office, R&D, Retail Conditional Bar, Cannabis
MAx. FAR 2.0
MAx. HEIGHT 65’
SITE PLAN
Magazine Street
Magazine Street
Proctor Street
Shirley S
treet
Norfolk Avenue
Gerar
d Stre
et
Eustis Street
Kemble Street
Howard Street
Cedric Street
Allerton Street
George Street
Proctor Street
Shirley S
treet
Norfolk Avenue
Gerar
d Stre
et
Eustis Street
Kemble Street
Howard Street
Cedric Street
Allerton Street
George Street
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C O N F I D E N T I A L O F F E R I N G M E M O R A N D U M
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CAPITAL MARKETSMichael Restivo +1 617 848 5858 [email protected]
Lenny Pierce+1 617 531 4120 [email protected]
Kellie Coveney+1 617 848 5852 [email protected]
LEASINGBen Roopenian +1 617 531 4242 [email protected]
FINANCINGMartha Nay +1 617 848 1577 [email protected]
©2020 Jones Lang LaSalle IP, Inc. All rights reserved. The information contained in this document is proprietary to Jones Lang LaSalle and shall be used solely for the purposes of evaluating this proposal. All such documentation and information remains the property of Jones Lang LaSalle and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent necessary for its evaluation. It is not to be shown to any third party without the prior written authorization of Jones Lang LaSalle. All information contained herein is from sources deemed reliable; however, no representative or warranty is made as to the accuracy thereof.
