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the
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www.bankerandtradesman.com
WEEK OF MONDAY, APRIL 18, 2016
services
and
real
estate
weekly
for
massachusetts
A Publication of The Warren Group COMMERCIAL INTERESTS
Boston Not Tops In Life Sciences Investment New Report Finds Greater Boston Nipping At Silicon Valley’s Heels BY SCOTT VAN VOORHIS BANKER & TRADESMAN COLUMNIST
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hink the Boston/Cambridge area is the top biotech market in the world? Think again. Money talks, and when it comes to venture capital and investment dollars pumped into promising life sciences firms, the Boston area ranks No. 2, behind Silicon Valley. The good news, though, that we are gaining fast on our slicker and hipper West Coast rivals, having doubled our portion of dollars going into the biotech sector since 2000. I know all this not because I have morphed overnight into a life sciences guru; rather, I was fortunate enough to have veteran lab market researcher Brendan Carroll, who has struck out on his own, send me his latest insights – nifty new reports with intriguing titles like “Blue,” the inaugural report on the office market; “Green,” covering life sciences; “Steel” focusing on the industrial market; Continued on Page 3 REMOVING ROADBLOCKS
When Will Development Begin In Lynn?
RISING PRICES
Recovered From The Crash,
WILL MEDIAN HOME PRICES CONTINUE TO SOAR? Market Sends Mixed Signals As Prices Climb BY JIM MORRISON BANKER & TRADESMAN STAFF
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assachusetts home prices have largely returned to their pre-crash peaks, but nationwide concerns about another looming recession and signs of markets softening across the country have some concerned as the spring market heats up. The Brookings Institute in January ranked Boston first in the nation for income inequality. In a February editorial, UMass’ Donahue Institute said the state economy is “emitting mixed signals.” Year-over-year, the median sale
price of a single-family home in Massachusetts in February 2016 decreased 4.3 percent to $299,000, the lowest it’s been since February 2014, according to The Warren Group, publisher of Banker & Tradesman. Could the rising cost of residential real estate be leveling off – or even starting to fall? Shant Banosian, branch manager of Guaranteed Rate, says no – not yet. “Conventional loan interest rates are close to three-year lows and jumbo rates have never been lower,” Banosian said. “The U.S. economy is Continued on Page 8
OUTCOME OF A RATE RISE David Lazowski, branch manager of Fairway Independent Mortgage, does the math – so you don’t have to.
Base mortgage payment: $1,800 Down payment: 20 % Rate: 3.5% Purchase price: $480,000 Rate: 4.5% Purchase price: $440,000 Loss of buying power: $40,000 or 9.2%
Vast Vacant Parcels Come With Headaches BY STEVE ADAMS BANKER & TRADESMAN STAFF
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he city of Lynn offers a rare-as-steaktartare development opportunity in the current real estate market: a chance to build high-rise housing on the waterfront less than 10 miles from Boston. The city unfurled a red carpet in 2008 when officials approved a new master plan that allows buildings up to 20 stories in mixed-use complexes on a 305-acre stretch of desolate coastal parcels. With mechanical cranes nowhere to be seen on Lynn Harbor and the real estate cycle entering a mature phase, Gov. Charlie Baker’s administration has singled out this Gateway City of 90,000 for extra attention. A task force of top administration officials has been meeting with local and federal repContinued on Page 9
CONTENTS
Commercial & Industrial ������������������������������������������ 9
Points ����������������������������������������������������������������������� 4
Residential �������������������������������������������������������������� 8
Classified Sections ������������������������������������������������� 10
By The Numbers ������������������������������������������������������� 6
In Person ������������������������������������������������������������������ 7
Records Section ������������������������������������������������������ B1