Bay State Apartment Owner 3Q 2013

THIRD QUARTER 2013

Back on Track After More Than a Decade, Roseland Bringing New Life to East Boston

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The Offical Magazine of the Rental Housing Association (RHA), a division of the Greater Boston Real Estate Board and an affiliate of the National Apartment Association

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THIRD QUARTER 2013

Back on Track After More Than a Decade, Roseland Bringing New Life to East Boston

Bay State Apartment Owner is the official publication of the Rental Housing Association. ©2013 The Warren Group Inc. and the Rental Housing Association. All rights reserved. The Warren Group is a trademark of The Warren Group Inc. No part of this publication may be reproduced in any manner without the express written consent of the publisher.

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Greater Boston Real Estate Board

One Center Plaza, Mezzanine Level Boston, MA 02108 Phone: 617-423-8700 Fax: 617-338-2600

RHA Officers President: President Elect: Vice-President: Secretary: Executive Director:

Lynn Bora Joseph E. McPhee Jr. Gilbert Winn Sarah Mathewson John E. Lafferty

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COVER

Back on Track

After More Than a Decade, Roseland Bringing New Life to East Boston

08

CONTENTS

President’s Message

04

RHA Calendar

05

Executive Director’s Message

06

Photo Gallery

07

The Business Exchange

12

How Time Flies

Don’t Wrap up Your Budget without NAA

Third Quarter 2013 • BAY STATE APARTMENT OWNER

3

President’s Message

BY LYNN BORA

How Time Flies

I

© 2013 Brian McCarthy

t is hard to believe that we are already headed into the home stretch, just one quarter remaining for 2013. And it is very fitting that we conclude a very successful year with the 2013 RHA Presidents Awards Dinner, which will be held on Dec. 12, 2013, at the Renaissance Boston Waterfront hotel, located in the Seaport District. This event has become the premier industry event of the multifamily industry and I will look forward to seeing you there.

The RHA’s Industry Excellence Award is presented to an individual within the rental housing industry exemplifying excellence in rental housing through community and civic involvement and

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professionalism in all aspects of multi-family development, ownership and management. The RHA is very pleased to present the 2013 Industry Excellence Award to Irma Schretter, president and founder of S-C Management Corp. Irma is a member of the RHA board of directors and principal in her firm. S-C Management was formed in 1979 and provides full-service property management, development and consulting services to clients in Massachusetts, New Hampshire and Virginia. S-C Management currently services a select portfolio of approximately 3,000 multi-family units.

The RHA’s Excellence in Public Service Award is presented annually to an individual who best exemplifies excellence in the public sector, benefiting the rental housing community. In recognition of his commitment to making quality

rental housing affordable to all, the RHA is proud to present the 2013 Excellence in Public Service Award to Aaron Gornstein. Gov. Deval Patrick appointed Aaron to serve as undersecretary for housing and community development, where he oversees the Department of Housing and Community Development.

He also serves as the chief housing policy advisor to the secretary of housing and economic development and to the governor, and serves as chairman of the Community Economic Development Assistance Corporation.

Prior to his recent appointment, Aaron served as the executive director of Citizens’ Housing and Planning Association (CHAPA).

Prior to CHAPA, he was a neighborhood planner for the city of Cambridge and director of housing for the Tri-City Community Action program.

I am very excited and humbled that these two individuals have agreed to accept the RHA Presidents Awards in recognition of their commitment and contribution to quality affordable housing.

There are plenty of additional things going on during the last quarter. Top of the list, for many, is the 2013-2014 Maintenance Mania® competition. Educational offerings include our annual Massachusetts Landlord Tenant Law update and a Breakfast Series program on industry trends. Our NextGen group hosts a career panel, and winds their successful year up with a holiday party.

It has been a great year, with plenty of education, networking and celebrating left to do. I hope I will see you at our upcoming events. n Lynn Bora is 2013 president of the Rental Housing Association.

Construction Professionals for Quality Residential Development For more information contact Jeffrey Ellowitz / 781.272.9440 / jellowitz@erland.com Erland Construction

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RHA’s Industry Excellence Award Winner Irma Schretter, President and founder, S-C Management Corp

Excellence in Public Service Award Winner

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5

Executive Director’s Message

BY JOHN E. LAFFERTY

Don’t Wrap up Your Budget without NAA

A

s budget season comes to a close, remember to check and see that you have included NAA events in your planning for 2014.

There are three major meetings, each with its own reason for you to attend.

On March 9–12, 2014, the Capitol Conference takes place at the Omni Shoreham Hotel in Washington, D.C. As the name implies, this is the conference which takes up national legislative and regulatory issue that impact your business.

In addition to attending briefings and panels presented by the experts, many members also take this time as an opportunity to schedule “Hill Visits” with their elected representatives.

From June 19–21, 2014, Denver, Colorado, is the host city for the 2014 NAA Education Conference and Exposition. This is also the venue for the 2014 Maintenance Mania finals. This

is the “big show” both in terms of the multi-track educational offerings tailored for each segment of the industry, and the number of industry leading suppliers displaying the latest in goods and services which keep our industry growing.

From Nov. 13–15, 2014, Boston is the host city for 2014 Assembly of Delegates. The Assembly of Delegates (AOD) is NAA’s largest business meeting of the year, where all NAA and NAAEI boards, committees and task forces meet and the new incoming volunteer leadership is installed. In 2014, there is a special reason you will want to attend the AOD in Boston. At this event, RHA past president Tom Beaton will be installed as 2015 chairman of the National Apartment Association How much to invest in you and your staff?

While we cannot guarantee pricing, we can make some estimates based on past events. Typically, NAA reserves a room block at host hotels in the $175 to $250 per night range. There is no

charge to attend the Capitol Conference or AOD; however, NAAPAC Better Government Fund events and the Installation Dinner at the AOD are ticketed events. The NAA Education Conference registration fee schedule varies depending on the date the date the registration is made and whether or not one is part of a group. (For example, an individual registration made in mid-April for the 2013 conference cost $775.)

And that is not all there is. Visit the NAA website for information on the following additional conferences: Apartment Revenue Management, NAA Student Housing Conference & Exposition and the NAA Green Conference.

If you have not already done so, please make NAA a part of your business plan for 2014. It is an investment in the most important asset your company has – YOU. n John Lafferty is the executive director of the Rental Housing Association.

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Photo Gallery

RHA Red Sox Pre-Party June 2013

RHA Golf Outing Franklin Country Club, May 2013

Affiliate Signature Event July 2013

Third Quarter 2013 • BAY STATE APARTMENT OWNER

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Back on Track After More Than a Decade, Roseland Bringing New Life to East Boston

By Cassidy Murphy

R

oseland is really dedicated to development in East Boston. It took more than 12 years – of permit struggles, a disastrous economy and numerous setbacks – but the company broke ground on the first of seven planned residential buildings in the Jefferies Point neighborhood earlier this year.

It all started back in 1999, when MassPort sent out a request for proposals for several of its properties in the area. By the end of 2000, Roseland, a Mack-Cali company, had been approved for the section along Marginal Street, between Lewis and Orleans. It took more than six years to get all of the permits aligned, and Roseland began some demolition and sitework. Then came the Great Recession; the economy tanked and financing dried up.

But Roseland is back on track, and is the first of several planned developments in the area to get started.

“We’re pioneers there,” said Joseph Shea, senior vice president/operating partner at Roseland. “When we went for financing and the bankers asked for comps, there really weren’t any. We’re testing the waters of the market there, and we have a really good feeling about the product we’re delivering. There’s so much excitement and energy there now; we think when we start leasing, it’s 8

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going to inspire others, and other projects – all types of projects – will go forward.”

Residential development along Boston’s waterfront is a hot topic these days, but Shea says the East Boston neighborhood of Jefferies Point has a number of characteristics that differentiate it from, say, the Seaport.

“Jefferies Point is an established neighborhood,” he said. “It has restaurants and amenities, like grocery stores, that the Seaport doesn’t have.”

The initial building is about 100 feet from the Blue Line’s Maverick Square T stop, which was the recent beneficiary of a $50-million facelift. One stop from State Street and the Aquarium in one direction, and one stop from Logan Airport in the other, Maverick is conveniently located.

“The Seaport started with lots of warehouses and parking lots, and then the convention center came in, and the hotels, the artists, and residential development followed,” Shea said. “The East Boston waterfront, while it has an industrial history, has a neighborhood feel.”

The first building, Portside at Pier One, is slated for completion in October 2014. Of the 176 units, 111 are one-bedroom with some studios, and 65 are two-bedroom units, and 15 percent are designated affordable.

Above, amenities near Pier 1 include Piers Park, with a planned expansion next year.

Below, the site on a busy day in early September.

Rendering courtesy of Roseland

With five floors, the design features some retail on the first floor with space for a future restaurant as density increases and other projects are built out. The development will be finished about 30 months from the completion of the first building, Shea said, and will contain about 600 apartments and condominiums.

Shea says East Boston has “the best views of the city in the city, by far. The view is astounding; you can see all the way from Bunker Hill down to the Harbor Islands.”

And if you’re not blinded by the view, the planned development has plenty to see on the ground.

Until Piers Park was developed, and even after, “the waterfront wasn’t accessible,” he said. “The area was full of industrial activities; the water was just there, and you’d never think about it. Now, it’s an incredibly beautiful place to be. We’ve come along and taken an industrial setting, and given the community access to the waterfront. It’s really going to show how interesting and cool East Boston really is.” n Cassidy Murphy is editorial operations manager for The Warren Group, publisher of Bay State Apartment Owner.

Photos by Cassidy Murphy Third Quarter 2013 • BAY STATE APARTMENT OWNER

9

Building Connections Between Industry Decision-Makers and Vendors

O The

Business Exchange

BY PHYLLIS HANLON

Michael Beaulieu Assistant Vice President Bain Pest Control Services 1320 Middlesex Street Lowell, MA 01851

A full-service company, Bain Pest Control has been providing residential and commercial pest management programs in the New England area since 1926. The company offers management services for a variety of pest issues from crawling and flying critters and problem birds to fumigations and tick and mosquito control. Moreover, Bain Pest Control has the versatility to service largescale, multifamily properties and businesses of all types.

The company also has the resources and knowledge to handle challenging accounts such as low-income housing and shelters.

Bain Pest Control’s goal is to be actively involved in the RHA on an affiliate level, according to Beaulieu, and the recent business exchange gave the company a prime opportunity to network. “We wanted to meet with some of our current customers to enhance our relationships, while building new relationships with other property managers,” says Michael Beaulieu. “I believe Bain Pest Control has a lot to offer the industry and we would like to create a partnership with property management teams to help protect their tenants and allow them to live more safely and comfortably.”

Beaulieu hopes to become more involved in and learn more about the property management industry to enable his company to offer a higher level of service to its customers. “At the networking meeting we were informed of the upcoming events and were very impressed with the organization and the structure of the association.

At the networking exchange and the golf tournament we made several contacts with current members,” he adds.

“To be able to speak with the decision makers face-toface provided us with the opportunity to market our services on a much more casual level.”

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n July 13, the Rental Housing Association (RHA), a division of the Greater Boston Real Estate Board and the Massachusetts Affiliate of the National Apartment Association, hosted its third annual business exchange. This fundraiser and networking opportunity for the association’s 650-plus members who own or manage multifamily properties, and those who provide goods and services, attracted 20 industry member companies.

During eight- to 10-minute face-to-face meetings – in essence, mini sales calls – industry decision-makers and affiliate members had the chance to learn about each other’s companies. “The benefit to both parties is the efficient use of time,” says Lynn Bora, RHA’s president. “The industry members benefit by learning about new goods

Michael Maak

Director of Business Development Fincor Construction, Inc. P.O. Box 325 Rochester, MA 02770 A construction management company that specializes in interior, exterior and site renovations of multifamily properties, Fincor Construction, Inc. has managed more than $50 million in renovations since its founding in 2004. The company has applied its exceptional communication and project management skills to properties from Massachusetts to Florida.

For instance, Fincor completed a major renovation of 500 occupied apartments at Avalon Cove, situated in Jersey City directly across from Manhattan on the Hudson River.

Currently, Fincor is renovating 20 to 25 apartments every month at the Granada Highlands complex in Malden, Mass. According to Michael Maak, this project involves removing everything from a unit, except walls and windows. “The walls are repaired and painted, new kitchen cabinets and appliances are installed, new bathroom tubs and vanities are installed, new lighting and flooring is installed, and, after 30 days of intense renovations, the unit is ready for occupancy,” he notes.

Becoming a member of the RHA seemed like a good idea and attending the business exchange presented a prime opportunity to meet executives of Real Estate Investment Trusts and Commercial Property, owners of multifamily properties. “To get 10 minutes of one-onone time with one of these executives was an interesting proposition,” says Maak. Fincor also wanted to network with as many other executives as possible to seek referrals and new business opportunities.

Maak noted that the RHA is the “premier multifamily industry association in Boston,” citing the events they sponsor as well-attended and top notch. “I met several new vendors and prospects, made a few referrals and recommendations, and had a great time networking,” he says. “As a result of this event, Fincor is currently bidding on a [new] project and a second opportunity is in the works.”

Kristin Oxford and products and they get the vendor contact information to use for additional information in the future.”

Affiliate members made as many as 20 new contacts in an afternoon, something that would normally take days or weeks, Bora notes. “For the new affiliate members, it offers them the ability to build recognition quickly and to follow up with sales calls if there is a ‘match.’”

Some of the newest affiliate members shared their thoughts on this networking event.

Joel E. Breuer, PE Managing Partner HG Cornerstone, LLC Three Center Plaza Boston, MA 02108

HG Cornerstone has earned a reputation as a “consulting firm that solves complicated problems” related to buildings and/ or real estate. Specializing in real estate advisory, construction consulting, engineering and expert witness work, the firm offers a comprehensive portfolio of services for the multifamily rental housing industry from real estate brokerage, due diligence and investment, acquisition and disposition consulting to engineering design for capital improvement projects, dispute resolution and expert witness work for construction defects cases, insurance claims and real estate related matters.

“HG Cornerstone has spent years taking buildings apart and putting them back together again and has performed every type of upgrade, amenity installation and capital improvement project known to man on apartment properties,” says Joel E. Breuer. “We also help apartment buyers understand what they are getting into before they acquire a new property. And, we travel all around the country for our clients, many of whom own or invest in multiple states or regions.”

The business exchange afforded HG Cornerstone the opportunity to meet many decision makers and learn about their operations, goals and the way they evaluate and make buying decisions. “We had very good discussions and it seemed like there was an immediate need to utilize the services that HG Cornerstone offers – a very good fit, in fact, in many cases,” says Breuer.

Impressed by the exchange, Breuer says, “The event was definitely distinct and unique in the sense that you don’t get to meet that many decision makers all in the same place, at the same time, who are all basically a captive audience. They know why they are there and you have their full, undivided attention – very powerful, not an opportunity that a service provider firm gets every day.

Everyone that I spoke with was very attentive, in good spirits, receptive and took a genuine interest in what I had to say. They each made an effort to contemplate and envision how HG Cornerstone’s services fit into their own firms’ needs, goals and requirements.”

Regional Sales Executive Capture the Market 1805 Royal Lane, Suite 102 Dallas, TX 75229 Originally a television show out of Dallas, Capture the Market (CTM) wanted to bring a fresh visual approach to renters and property managers. So the company developed a fullservice video production operation that specializes in the multifamily industry. In addition to creating and producing a video that illustrates the life of an apartment community, CTM offers managing, streaming and distribution services to optimize video marketing for the apartment communities.

According to Kristin Oxford, CTM works with all of the Dolben Communities, Kettler, Korman, Greystar, Lincoln, Riverstone, Corcoran Management and others. She covers the entire Northeast and notes that events like the business exchange are invaluable.

CTM has clients in Canada and across the U.S., but wanted to enhance its service area by joining the RHA. “It is important to get your name out there, especially in a unique market like Boston because we do not have a huge presence here. We are building our portfolio in the Northeast and networking events can’t be missed when you are trying to grow your business and create relationships with people in your market,” Oxford says. “We are also newer members of the RHA and it is important to support your association and be involved in events such as this.”

Ashish Patel President Pilera Software, LLC 43 Technology Way Nashua, NH 03060

In response to a challenge from a homeowner association officer to create a more efficient electronic management system, Ashish Patel launched Pilera Software, an easy-to-use, and comprehensive online property management solution for rental communities, condominiums and association managers. The community management software improves the lines of communication and saves time for property managers by facilitating access to information from a secure web-based program for use on computers and mobile devices. The company currently provides its software solutions to multi-housing properties.

The business exchange came at just the right time for Pilera Software. “Our current client list in the rental market is in New Jersey, Connecticut and New Hampshire.

But we did not have a presence in Massachusetts,” says Patel. “We wanted to gain access to decision makers within the Boston rental market.”

The brief meet-and-greet situations at the business exchange helped Patel make some inroads into the Massachusetts market. “We got to meet a great set of people and important decision-makers, who were not yet aware of our software,” Patel reports. “Attending networking events like the business exchange gives us one-on-one exposure to important clientele. Also, we were able to engage in a much more detailed discussion than would normally happen at a business expo or conference.”

Third Quarter 2013 • BAY STATE APARTMENT OWNER

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G2448

RREG-G2448-Bay State Apartment Owner-4.75x9.75-4C-V2

2013 RHA Calendar October 3 NAA Maintenance Mania The Lantana, Randolph

November 6-8 NAA Assembly of Delegates Adolphus Hotel, Dallas, TX

June 19–21, 2014 NAA Education Conference and Exposition Colorado Convention Center, Denver

October 15 RHA Breakfast Series See RHA website for location

November NextGen Holiday Party

November 13–15, 2014 NAA Assembly of Delegates InterContinental Boston

October Landlord Tenant Law See RHA website for location October NextGen Career Panel See RHA website for location

December 12 RHA Presidents Awards Renaissance Waterfront Boston December NextGen Gathering March 9–12, 2014 NAA Capitol Conference Omni Shoreham, Washington, D.C.

Where indicated, dates and locations are subject to change.

For additional information, visit www.gbreb.com/rha.