Banker & Tradesman March 11, 2019

2018 TOP LENDERS SEE PAGE 11

THE FINANCIAL SERVICES AND REAL ESTATE WEEKLY FOR MASSACHUSETTS

BY THE NUMBERS

PAGE 6

County close-up: Norfolk Spotlight: Milton

IN PERSON

PAGE 8

After a career start as a title examiner, Marianne Sullivan got her first taste of the real estate auction business when she joined Paul Saperstein Co. After 15 years, she was ready to strike out on her own and founded her own auction house, Sandwich-based Sullivan & Sullivan Auctioneers.

WEEK OF MONDAY, MARCH 11, 2019

BANKING

BY THE NUMBERS

TOP LENDERS

$1.3 million The size of Rockland Trust’s average residential construction loan in 2018.

See Bram Berkowkitz’s story on page 1.

Source: Rockland Trust

0.05 percent The difference in marketshare held by the top two mortgage lenders in Norfolk County. See By the Numbers on page 6.

Source: The Warren Group’s Marketshare Module

1,765 The number of single-family purchase mortgages originated in 2018 by Leader Bank, nearly double any other bank. See Top Lenders on page 11.

Source: The Warren Group’s Marketshare Module

2,518 The number of single-family purchase mortgages originated by Guaranteed Rate Inc. in 2018. See Top Lenders on page 11.

Source: The Warren Group’s Marketshare Module

$169 million The volume of commercial mortgages originated by Ladder Capital Finance, the second-biggest commercial loan originator in Massachusetts by dollar volume. See Top Lenders on page 14.

Source: The Warren Group’s Marketshare Module

$2,992,500 The mortgage on the top property in this week’s Gossip Report. See page 9.

Source: The Warren Group

3.87 percent The market share held by the thirdbiggest mortgage lender in Norfolk County. See By the Numbers on page 6.

Source: The Warren Group’s Marketshare Module

$2,000 to $2,500 Rents in areas targeted by Cambridge Savings Bank for multifamily construction lending. See Bram Berkowitz’s story on page 1.

Source: Cambridge Savings Bank

Unless otherwise noted, all data is sourced from The Warren Group’s Mortgage Market Share Module, Loan Originator Module, Statistics Module and/or proprietary database. For more information please visit www.thewarrengroup.com/business/ datasolutions.

SMALL DOLLAR LOANS DRIVING COMMERCIAL LENDING AT COMMUNITY BANKS

Deep in Cycle, Banks Will be Watching Market Closely

BY BRAM BERKOWITZ BANKER & TRADESMAN STAFF

A

lthough the real estate market is deep into the current cycle, commercial lending did not falter in 2018 and banks were able to achieve strong results by staying in their lanes and sticking to the individualized strategies they have

spent years building.

Every year, The Warren Group, publisher of Banker & Tradesman, compiles the top 10 mortgage lenders among Massachusetts’ credit unions, banks and mortgage companies, ranked by number of loans and loan volume in several origination categories. All loans were originated in 2018.

Despite being located in one of the most heavily-banked states in the country, community banks had a good showing and competed with the state’s larger banks in nearly every category.

Some community banks were able to thrive by sticking to smaller commercial loans instead of going for big, all-in-one home runs.

Despite being one of the largest statechartered banks in Massachusetts, Rockland Trust originated 103 commercial real estate purchase loans, excluding lending for purchases of multifamily properties, for a total volume of more than $104 million in 2018.

In making these loans, the bank focused on small, family-owned operators building Continued on Page 10

COMMERCIAL INTERESTS

C H E L M S F O R D AT T H E C R O S S R O A D S

Firm’s Mounting Losses and Big Portfolio Present Danger

Town Sends Development-Friendly Message, But Is It Enough?

Time to Worry About WeWork

By Scott Van Voorhis | Banker & Tradesman Columnist

Commercial Real Estate PAGE 3

Retrofitting Suburbia

By Steve Adams | Banker & Tradesman Staff

Commercial Real Estate PAGE 7

2 | BANKER & TRADESMAN

MARCH 11, 2019

The Week on the Web

Timothy M. Warren Jr., CEO and Publisher David B. Lovins, President and COO

BANKER & TRADESMAN

A ROUNDUP OF OUR MOST POPULAR STORIES FROM THE PAST WEEK

Published by The Warren Group

SHAKEUP AT BOSTON PRIVATE AS LONGTIME EXECS TO LEAVE COMPANY

ESTABLISHED 1872

PUBLISHING

Associate Publisher: Cassidy Murphy Managing Editor: James Sanna Associate Editor: Steve Adams Reporter: Bram Berkowitz Contributing Writer: Scott Van Voorhis Audience Solution Specialists: Jenell James, Sarah Ahlgren

• David Kaye, CEO of Boston Private’s corporate clients group, and Corey Griffin, CEO of Boston Private’s wealth management group, intend to depart from the company.

• Kaye, who has been with the company since 2007, is leaving in a few weeks, while Griffin, who joined Boston Private in 2013, will stay on until the end of May. • A regulatory filing said Kaye and Griffin announced their “intention to depart from the company,” yet also states that the two will receive severance benefits set forth in the executive vice president severance pay plan.

• Paul Simons will become the president of private banking, wealth and trust at the bank, and continue his role as executive vice president of the company and the bank

Advertising Account Manager: Steve Ketler

THE NEXT VERTEX? LIFE SCIENCE FIRM EYES BIG SEAPORT CAMPUS

Graphic Designer: William Samatis

DATA SOLUTIONS

Director of Sales & Marketing: John Bottini Communications Manager: Mike Breed

• HarborOne Bancorp will adopt a plan of conversion and pursue a second-step stock offering of new shares of common stock. The roughly $3.65 billion-asset bank will become a wholly-owned subsidiary of a new holding company • Analysts predicted a second step offering would come faster than anticipated after HarborOne acquired Warwick, Rhode Islandbased Coastway Bank in an all-cash deal valued at $125.6 million.

Data Solutions Account Managers: Chris Mirakian, Peter Sullivan

INFORMATION SERVICES

Director of Operations & Product Strategy: Samantha Bullock Data Operations Supervisor: Tammy Dandurant Data Vendor Coordinator: Tracey Kelley

Acquisitions Coordinator: Linda MacDonald Transaction Acquisition Coordinators: Wally Bullock

• Hobbs Brook Management is planning a 5-story, 500,000-square-foot office and lab development at its 225 Wyman St. campus.

• Construction is expected to begin in the second quarter of 2019 with the building ready for interior fit-out by the end of 2020.

• JLL has been named the exclusive broker for the space.

PARENT COMPANY OF HARBORONE BANK PLANNING SECOND STEP CONVERSION

Executive Data Solutions Account Manager: William Visconti

Data Quality Auditor: Ellen Gendron

NEW 500K SF SPECULATIVE OFFICE/LAB PROJECT PLANNED FOR WALTHAM

• Cambridge-based cancer researcher Foundation Medicine Inc. is seeking up to 1 million square feet in Boston or Cambridge for a life science campus and is focusing its search to a buildto-suit office and lab site in Boston’s Seaport District owned

by WS Development of Chestnut Hill, according to real estate industry sources.

ROBERTS AND FEIJO NAMED NO. 1 COLDWELL BANKER TEAM INTERNATIONALLY

INFORMATION TECHNOLOGY

BOSTON SAW ONE OF BIGGEST BUMPS IN HOME FLIPPING

Senior Applications Developer: Joe Chan Software Developers: Michael Paul, Mark Wearsch

FINANCE & ADMINISTRATION

Controller: Gena Salvo Accounts Payable: Olga Khalaydovsky Accounts Receivable Clerk: Stephanie Griffin Human Resources Manager: Linnea Blair HR Coordinator: Andy Wells

• Among the nation’s big metro areas, Boston saw the biggest increase in flipping at 33.3 percent in 2018, according to ATTOM Data Solutions.

• Boston was followed by Tucson, Arizona (up 27.3 percent); Raleigh, North Carolina (up 24.5 percent); Columbus, Ohio (up 13.1 percent) and Hartford, Connecticut (up 12.8 percent). The report did not identify the average or median prices of flipped properties.

• Nationally, flipped homes originally purchased by the investor with financing represented 39.1 percent of homes flipped in 2018, down from 39.4 percent in 2017 and down from 41 percent in 2008. Of the homes flipped in 2018, 13.8 percent were sold to FHA borrowers – likely first-time homebuyers – down from 17 percent in 2017 to an 11-year low.

• Gail Roberts, Ed Feijo & Team has been named the topperforming Coldwell Banker sales team in 2018 among all the agency’s small sales teams around the world, based on adjusted gross commission income.

• The team achieved a total sales volume of over $175 million in 2018.

• In addition to Gail Roberts and Ed Feijo, the team includes members Margo Delaney and Victoria Kennedy. It is affiliated with Coldwell Banker Residential Brokerage New England’s Massachusetts Avenue office in Cambridge.

HERE’S WHAT YOUR PEERS WERE INTERESTED IN LAST WEEK: BANKE R & TR AD ESMA N

1

New 500K SF Speculative Office/Lab Project Planned for Waltham

2

National Development Subsidiary Buys South Boston Parcel for $12.5M

3

Worker Killed at MIT Construction Site in Cambridge

4

Former Canton Resident Sentenced in Mortgage Fraud Case

5

Boston Saw One of Biggest Bumps in Home Flipping

6

The Next Vertex? Life Science Firm Eyes Big Seaport Campus

7

Don’t Expect a Crash in Boston’s Luxury Market

8

Roberts and Feijo Named No. 1 Coldwell Banker Team Internationally

9

27-Unit East Boston Project Proposed

(ISSN 0005-5409)

Volume 200, Number 10 Published each Monday. ©2019 The Warren Group Inc., 2 Corporation Way, Suite 250, Peabody, MA 01960. All rights reserved.

No part of this publication may be reproduced without the written consent of the publisher.

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10

Among the Smallest Banks, One is Bucking the Trend

POLL RESULTS Banker & Tradesman readers were divided on the impact of a glut of new luxury rental units expected to hit the market.

With over 20,000 apartments, mostly luxury, expected to hit the market in the next 24 months, are you worried?

We’ll see a slowdown in 37% No. new luxury building for a while, but that’s it.

Look out for a big crash 32% Yes. in rents!

If we get a recession, this 26% No. could make a dent in housing costs.

If a recession hits, quite a 5% Yes. few folks could lose their shirts.

MARCH 11, 2019

BANKER & TRADESMAN | 3

COMMERCIAL REAL ESTATE COMMERCIAL INTERESTS

Time to Worry About WeWork Firm’s Mounting Losses and Big Portfolio Present Danger

BY SCOTT VAN VOORHIS BANKER & TRADESMAN COLUMNIST

C

o-working company WeWork would probably like you to think of it as the Amazon of real estate as it gobbles up large blocks of prime office space in downtown Boston and cities

across the world.

WeWork envisions itself as tech startup leading the transformation of the global workplace, one that will “create a world where people make a life, not just a living,” as the company’s mission statement puts it.

But with its main source of revenue leasing office space, WeWork is not a tech startup.

Rather, it’s a real estate firm – and a risky one at that.

A better comparison is to a high-flying and ultimately ill-fated New York investment firm that spent a fortune back in 2006 to buy Boston’s most prominent tower.

Broadway Partners turned heads when it shelled out $1.3 billion at the height of the mid-2000s real estate boom to snag the Hancock Tower.

Much like WeWork today, Broadway was sure it could make the numbers work – and a hefty profit – by jacking up already high rents and then watching the money roll in, year after year after year.

Given that Broadway’s big beg wound up in foreclosure, it’s a comparison that should give chills to Boston tower owners who have cut

deals with WeWork, or, for that matter anyone else with a stake in the health of the downtown office market.

After all, WeWork now controls over 1 million square feet of office space in downtown Boston, leasing it from tower owners and then renting it out again at dramatically higher rates – on a membership basis – to everyone from tech geeks to lawyers.

Beware of a business model that involves betting the house – or, in this case, the office tower – on the ability to push already sky-high rents ever higher, year after year, recessions be damned.

And if WeWork, which just laid off 300 employees and is still losing money, were to run into serious financial problems during a downturn, an awful lot of suddenly cheap office space could open up just as companies in towers across the city dump space on the market.

A Broadway Partners Rerun?

Beware of a business model that involves betting the house – or, in this case, the office tower – on the ability to push already skyhigh rents ever higher, year after year, recessions be damned.

The key to WeWork’s strategy is to pack as many clients as possible into the large blocks of office space it leases at top dollar from downtown landlords.

When Broadway bought the Hancock Tower in 2006, it paid more than twice what the seller, Beacon Capital Partners, had paid just three years before.

The real estate market was hot, and Broadway bet that it would make back that number and then some from the ever-higher rents it thought it could charge.

Less than three years later in the depth of the Great Recession rents were falling, not rising. Broadway lost the Hancock at a foreclosure auction, with the buyers paying $660 million, half of what Broadway had just paid a few years before.

In a case of here-we-go-again, WeWork appears to be making a similar bet.

The co-working startup is shelling out hundreds of millions of dollars to tower owners to take on large blocks of office space under 10 to 15-year leases.

WeWork assuredly has had to pay top dollar – no landlord is going to give away space in the midst of a hot market for anything but a hefty premium.

WeWork’s Strategy: Pack Them In

To make the numbers work, WeWork has been turning around and charging astronomical rates for office space – albeit very well designed with perks like coffee – that are two or even three times those levied by owners of the city’s priciest office towers.

As an example, let’s take space in one of Boston’s top towers, where you could easily pay $50 a square foot. It would cost a company anywhere from $12,500 to $21,000 a year to rent 250 square feet of space – the traditional metric – for a single employee, the range based on a number of variables.

Continued on Page 15

We couldn’t do it without you!

Thank you to our lending partners who help make home ownership affordable for Massachusetts’ residents.

BRAINTREE, MASSACHUSETTS

|

FORBESBUSINESSCENTER.COM

Top MassHousing Loan Originators in CY 2018: List based on closing more than 20 loans

James (Jamie) C. Pollard, NMLS #441889, Academy Mortgage Corp. www.masshousing.com Elisa D. Bare, NMLS #699976, Residential Mortgage Services, Inc. George T. Koutsos, NMLS #29613, CrossCountry Mortgage, Inc. Nicholas Paleologos, NMLS #66223, Envoy Mortgage Ltd Denise A. Peach*, NMLS #41008, Village Mortgage Company Andrew Marquis, NMLS #29861, Guaranteed Rate, Inc. Savvas Fetfatsidis, NMLS #35213, Guaranteed Rate, Inc. Brieanna Kelley*, NMLS #303652, Village Mortgage Company Trevor McFarland, NMLS #38803, Residential Mortgage Services, Inc. Shant Banosian, NMLS #7206, Guaranteed Rate, Inc. Ann Marie Borghesani, NMLS #188551, First Home Mortgage Corp.

Dennis Ouellette, NMLS #50205, Fairway Independent Mortgage Corp.

Kenneth Askins, NMLS #522509, Mortgage Network, Inc. Eileen A Hennessey, NMLS #22400, Academy Mortgage Corp.

William B. Murphy, NMLS #19301, Fairway Independent Mortgage Corp.

Raymond B. Severance, NMLS #15875, Residential Mortgage Srv., Inc. * Denise A. Peach and Brieanna Kelley now at Total Mortgage Services, LLC

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Associate 617.457.3280 chayes@hunnemanre.com

OPPORTUNITY

www.masshousing.com

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4 | BANKER & TRADESMAN

MARCH 11, 2019

OPINION EDITORIAL

EDITORIAL CARTOON

Don’t Hike T Fares Without Ride-Hailing Fees

A

ccording to recent reporting, Gov. Charlie Baker is less than enthusiastic about skepticism regarding a 6.3 percent MBTA fare hike proposed by members of the transit agency’s Fiscal and Management Control Board.

At the board’s meeting last week, member and UNITE HERE Local 26 President Brian Lang said it would be “completely wrongheaded” to lean only on T riders to generate the extra revenue administration officials say it needs to bridge a structural budget deficit. Lang’s fellow board member Joseph Aiello echoed those sentiments.

At the ribbon-cutting for the new Fairmount Line Commuter Rail station that same week, board member and 128 Business Council Executive Director Monica Tibbits-Nutt echoed Lang Aiello.

“You have so many micro-mobility options right now and the fact that they’re not having to put as much money into the state, into the infrastructure, is ridiculous. I mean they’re using public roads,” she said, according to Commonwealth Magazine.

At the same event, Commonwealth reported, Baker affirmed he thinks the T should increase fares first, while increases in the gas tax or in fees paid by Uber, Lyft and other ride-hailing services should come later as Massachusetts negotiates a multi-state transportation emissions reduction agreement like former Gov. Mitt Romney’s Regional Greenhouse Gas Initiative.

We respectfully disagree.

Yes, it is unfair to raise fares on T riders to pay for service improvements while drivers who benefit from the system’s existence aren’t charged a penny.

The MBTA keeps hundreds of thousands of drivers off the roads every day, but more significantly it is critical to keeping the Massachusetts economy humming and strong.

More importantly, however, not making other commuters pay their fair share misses an opportunity to make a dent in congestion caused by ridehailing services by increasing fees beyond the $0.20 per ride under current law. It also could make congestion worse by enticing some commuters, particularly Commuter Rail and some bus riders, to abandon public transit for cars. As more riders leave for Uber or their own cars, the T’s revenue picture will only get worse.

A broad-based method of raising funds can easily be written to address very real regional equity concerns. Gas taxes and ride-hailing fees paid outside of the MBTA’s service area can be directed to the state’s smaller regional transit agencies as an operating subsidy or as block grants to fund specific improvements or capital expenses.

Baker is absolutely right to seek a regional compact that will put a price on the carbon emissions of the transportation sector. Such market-based solutions are key to reorienting the region’s economy for a low-carbon future.

However, the regional initiative Baker’s transportation emissions pact is inspired by took two years to negotiate. If the T needs new revenue as urgently as the Baker administration says, that is too long to wait. To borrow a line Baker is fond of repeating in the context of his proposed zoning reform bill, Massachusetts shouldn’t let the perfect be the enemy of the good when it comes to transportation funding.

Banker & Tradesman Cassidy Murphy

Associate Publisher c m u r p h y @th e w a r r e n gr ou p . c om

Timothy M. Warren Jr.

Publisher T i m o t h y M. W a r r e n

Publisher 1975-1988 Keith F. Warren

Publisher 1928-1975 W i l l a r d C. W a r r e n

Publisher 1901-1928

T H E N AT I O N ’ S H O U S I N G

Zillow Sued Over Hacked Listing of $150M California Mansion Suit Claims Breach ‘Dramatically’ Corrupted Listing Price

BY KENNETH R. HARNEY WASHINGTON POST COLUMNIST

W

hat may be the first-ever hijacking of an active real-estate listing online – a palatial mansion overlooking the Pacific Ocean in Bel Air, California – has led to a lawsuit seeking $60 million in damages against home-sale marketing company Zillow.

One or more hackers seized control of the mansion’s listing page on Zillow’s popular Zestimates site in February, causing it to display a series of bogus sales that were tens of millions of dollars below the $150 million asking price, according to the complaint filed in federal district court in Los Angeles. The net effect was to inflict financial damage on the seller by “corrupt[ing] the listing price dramatically,” according to the complaint, making it more difficult to obtain anywhere near the price the seller is seeking.

Hackers Used Chinese IP Address

The newly constructed hilltop house is a knockout, even by Hollywood standards: 12 bedrooms, 21 baths, 38,000 square feet of interior space, 17,000 square feet of “entertainment decks,” three kitchens, five bars, fitness spa, four-lane bowling alley, basketball and tennis courts, wine cellars and an 85-foot “glass-tile infinity pool,” to cite just some of the amenities. It is owned by a limited liability company controlled by Los Angeles luxury builder Bruce Makowsky.

The hijacking occurred when someone using a Chinese IP address and a made-up U.S. phone number managed to successfully claim “ownership“ of the mansion on Zillow’s Zestimates page. Zillow, which displays pages on 110 million American homes for sale and off the market, offers a feature that allows owners to amend descriptions of their homes on the site. The feature is heavily used by legitimate owners to modify information posted about their house – numbers of bedrooms and baths, for example, or a recent remodeling that affects the property’s market value. To successfully make such a claim, owners must answer questions designed to verify their identity.

In this case, according to the suit, hackers figured out how to get past Zillow’s security questions and began manipulating information on the site. They erroneously reported that the house sold for $110 million on Feb. 4, then for $90.5 million on Feb. 9 and $94.3 million Feb. 10. They also listed an open house for the

property on Feb. 8, something that would be unusual in the rarified world of super luxury homes, where showings tend to be exclusively by appointment.

Overcoming Zillow’s Security Measures

The suit alleges that Zillow was negligent in allowing false and harmful information to be posted on the mansion’s page, despite repeated requests for “over a week” from the seller’s lawyers to pull the plug on the hackers. Zillow does not have adequate “safeguards in place to prevent internet trolls, criminals” and others “to commit illegal acts” by “logging into their system to post the false information,” the suit alleges.

“While we don’t discuss pending litigation, I can tell you that [the company] goes to great lengths to display current and accurate data,” Zillow spokesperson Kate Downen said in a statement, adding Zillow is “in the process of updating” the verification system for access to owner pages on the Zestimate site.

In an exhibit accompanying the complaint, attorneys for the owner included a copy of an email from Kim Nielsen, senior lead counsel for Zillow Group Inc. “Unfortunately, if someone is able to provide responses to the verification questions, they are able to claim the home … we do not manually check each time someone attempts to claim a home,” the email said.

“Any home on our website can be claimed by the homeowner. There are a series of questions ... but if someone attempts to claim [the property] enough times, they will know the questions asked and be able to figure out what information they need to verify their identity,” the complaint quotes Nielsen as saying.

“How is it that someone with a fake phone number (bad area code) and Chinese IP address and email can hijack [a] $150 million house,” said Ronald Richards, the seller’s attorney.

In an interview, Richards said “it’s impossible to have a site” like the Zestimate owner-claim page if effectively there are “no security protections.”

What should homeowners whose houses are listed on Zillow make of this suit? Even if your home is not a dazzling palazzo on a hill, the secret is out: Though it’s highly unlikely, your Zillow page can be hacked and stolen by online troublemakers. Until Zillow announces verification reforms, it’s probably worth checking your Zestimate page now and then.

Even if your home is not a dazzling palazzo on a hill, the secret is out: Though it’s highly unlikely, your Zillow page can be hacked and stolen by online troublemakers.

Ken Harney’s email address is harneycolumn@gmail.com

MARCH 11, 2019

BANKER & TRADESMAN | 5

OPINION ULI PERSPECTIVES

We’re Still Not Doing Planning Right Planners and Designers Must Respond to Changing Earth

BY MICHAEL GROVE SPECIAL TO BANKER & TRADESMAN

T

hroughout my career as a landscape architect and planner, I’ve always been an optimist. The act of planning is, by nature, forward-looking. When putting pen to paper, you are laying out your hopes and dreams for the future – blending the reality of present day needs with a vision for what might be.

As designers, we think of ourselves as stewards, with the belief that human potential can solve anything. I hope it can.

But if you’re planning for a utopian future without considering the mess we’ve gotten ourselves into, or if you’re an idealist without also being pragmatic, or if you’re sketching out your dreams without researching scientific realities, you’re not doing it right.

Embrace Biodiveristy

According to the Center for Biological Diversity, more than half of the planet’s species will be extinct by the end of the century. The Earth is currently losing animal species at 1,000 to 10,000 times the natural rate.

If you’re planning without prioritizing habitat loss and biodiversity, you’re not doing it right.

Our current extinction crisis is almost entirely caused by humans and the activities we’ve taken that result in habitat loss. We are often more focused on aesthetically-pleasing design outcomes than we are on real ecological resilience. If your design vision requires constant weeding and pruning, favoring the few plant species that have aesthetic value for humans at this particular moment in time, you are in essence terminating vital insects and causing an external disturbance to the larger ecosystem. We’ll probably never get it quite right, but we should at least try harder.

Currently, we’re working on the master plan for the Chengdu Panda Reserve – a 69-square-kilometer site in central China, with the ultimate goal of releasing bredin-captivity juvenile panda bears back into the wild. But it’s not just for the benefit of pandas. Protecting their habitat also benefits a third of China’s amphibian species, 365 bird species, and over 100 mammal species.

The plan by no means strives for perfection, but its goals for habitat protection are intentionally ambitious.

Even though there is much to fix in the world we are leaving to our children and our grandchildren, I remain optimistic. If there ever were a time in history for the design professions to step up, it is now.

By the end of the century, experts believe that our agricultural land will produce only half as much food as it does currently, even as the population is growing.

If you’re planning without prioritizing sustainable agriculture, you’re not doing it right.

Traditional farming will remain an important part of our food web, but the reality is that agriculture hasn’t seen much innovation over the past 10,000 years. I believe that the future of farming is urban. By 2050, 80 percent of us will be living in cities. To reduce our carbon footprint, we need to grow our food closer to where we live.

In Shanghai, we’re designing the Sunqiao Urban Agriculture District which is focused on closed-loop indoor farming. Over the last two decades, China has lost over 123,000 square kilometers of farmland to urbanization. But Sunqiao’s hydroponic systems will increase yields by 40 to 100 times what traditional soil-based farms can produce, all without the use of pesticides or fertilizers. Again, it isn’t perfect, but it’s moving the needle.

Put Resiliency First

By the end of the century, the United Nations predicts the Earth will be 4.3 degrees warmer than it is today if we don’t change course. This much warming translates to about $600 trillion in damage from climate impacts. If you’re planning without prioritizing resiliency, you’re not doing it right.

We must accept that climate-induced catastrophes will be a fixture of our future. That said, the discourse around resilience is primarily an people-focused one.

Though ecological change is a dynamic process, the anthropocentric mindset of resilient design prioritizes safeguarding the present to maximize its durability, even though the present system may be flawed.

It is unrealistic to expect that human settlement should retreat completely, but it is our role as planners to at least educate clients and communities about the potential impacts. Our research into sea level rise in Boston created guidelines for planners to reference when thinking about the future, and ongoing work for the Wuhan Yangtze riverfront leverages frequent flood events as a driver of placemaking strategies.

Even though there is much to fix in the world we are leaving to our children and our grandchildren, I remain optimistic. If there ever were a time in history for the design professions to step up, it is now. It is our responsibility as designers to provide a meaningful and lasting benefit to our society, to humanity and to the planet.

Michael Grove is a principal and the chair of landscape architecture, civil engineering and ecology at Watertownbased Sasaki Associates.

H A P P Y B I R T H D AY S

For 40 Years, CEDAC Has Catalyzed Positive Change Early-Stage Assistance Has Helped Build Housing, Transform Communities

BY ROGER HERZOG SPECIAL TO BANKER & TRADESMAN

I

n 1978, then-state Rep. Mel King introduced legislation that created the Community Economic Development Assistance Corp. (CEDAC), the nation’s first state agency designed to provide technical assistance to the burgeoning nonprofit community development movement.

The idea of such an agency grew out of the Wednesday Morning Breakfast Group meetings convened by Mel at MIT with community activists and planners.

In Boston, the group’s primary focus was the desire to establish community control over the redevelopment of acres of land in the heart of neighborhoods in the southwest area of the city that the state had taken by eminent domain for an Inner Belt highway. The highway was stopped through community activism and by 1978, it had become clear that there was a need for an agency like CEDAC. In the 40 years since we were established by an act of the legislature, Massachusetts and the community development sector have changed tremendously, and so has CEDAC. We started as an economic development organization that provided technical assistance to community-based nonprofits focused on small business development and job creation. But as the commonwealth’s economy changed, we’ve evolved into a community development financial institution that provides early-stage financing and technical assistance to nonprofits seeking to produce and preserve affordable housing and nonprofit early education facilities, through our affiliate, Children’s Investment Fund.

While it’s not easy to sum up 40 years of community development work, with its complications and challenges, the best way to share our accomplishments is to look at a sample of some of the nonprofit development projects we’ve assisted: Preserving affordable housing – The Chapman Arms story: Since the early 1980s, CEDAC has fought to preserve the long-term affordability of subsidized

multifamily housing, which is threatened by the timelimited use restrictions used as part of federal and state financing programs in the 1960s and 1970s. In 2009, the state passed an affordable housing preservation law, Chapter 40T, which provided the commonwealth with new tools to monitor and address this expiring use challenge. One of the key tools is purchase rights that allow the commonwealth’s Department of Housing and Community Development (DHCD) or its designee to acquire and preserve expiring affordable housing projects if an owner proposes to sell a building.

In the 40 years since we were established by an act of the legislature, Massachusetts and the community development sector have changed tremendously, and so has CEDAC. In 2011, Chapman Arms, in Cambridge’s Harvard Square, became the first major project whose affordability was preserved through the use of Chapter 40T’s purchase rights. CEDAC delivered technical assistance to DHCD and its nonprofit designee, Homeowner’s Rehab Inc., as well as a rapid commitment and closing on acquisition financing to preserve this mixed income 50-unit property.

Revitalizing neighborhoods – Northampton’s Live 155: Last year Way Finders, a community development corporation (CDC) focused on Western Massachusetts, opened Live 155 in Northampton. The mixeduse, mixed-income, new construction development of 70 apartments has helped to transform an important neighborhood in that city, a gateway into the downtown district. CEDAC provided $2.6 million in earlystage acquisition and predevelopment funding for that

project, and similarly provided financing for Lumber Yard Apartments, a project by the Valley CDC across the street. These two projects have spurred significant public investment from the city, the state, and private partners.

This is only one recent example of the effective role of CEDAC’s early-stage assistance that supports community nonprofits’ transformative efforts. Boston’s Jackson Square (where the original neighborhood battle against highway construction was waged) and Worcester’s Kilby-Gardner-Hammond are also examples where we’ve worked with community partners to reinvigorate those neighborhoods.

Supporting equitable transit-oriented development – The Residences at Fairmount Station: Late last year, Southwest Boston CDC and its development partner Traggorth Companies opened the Residences at Fairmount Station in Hyde Park, a 27-unit affordable housing development. The Residences represent equitable transit-oriented development: affordable housing built near the MBTA’s new Fairmount Corridor commuter rail line. Locations near transit offer opportunities for increased development density, and CEDAC and its financing partners provided $1.2 million in acquisition and predevelopment financing to ensure that low- and moderate-income residents can access these desirable locations.

CEDAC is celebrating our 40th anniversary at an event this March and we will honor Mel King for both his vision and his belief in the power of people to strengthen their communities. In the four decades since he introduced that legislation, Massachusetts has evolved into a national model of community development, in large part because of the institutional framework he helped to create. It’s gratifying for us to look at the innovative projects above and recognize we are carrying on an important legacy.

Roger Herzog is the executive director of the Community Economic Development Assistance Corp.

6 | BANKER & TRADESMAN

MARCH 11, 2019

BY THE NUMBERS COUNTY CLOSE-UP

NORFOLK

SPOTLIGHT Milton

YEAR SETTLED 1640

Milton was home to The Granite Railway, built in 1826 and often called the first commercial railroad in the United States. The horse-drawn railroad ran from quarries in Quincy to a dock on the Neponset River in Milton and was used to take the heavy stone to Charlestown for use building the Bunker Hill Monument.

YEAR INCORPORATED 1662 TOTAL AREA 13.3 square miles POPULATION 27,003 DENSITY 2,000 people per square mile TAX RATES Residential: Commercial:

STATISTICAL SNAPSHOT MEDIAN SALES PRICE Jan. 2019

Community Avon

Jan. 2019

Change from 2018

$287,500 -4.17%

12 -29.41%

Braintree

$460,000 -2.02%

24 20%

Brookline

$1,730,000 -4.81%

11 83.33%

Canton

$637,500 7.87% 10 25%

Cohasset

$940,000 51.00%

5 -16.67%

Dedham

$500,000 9.23%

15 -34.78%

Dover

N/A N/A N/A N/A

Foxboro

$440,000 33.33%

10 -9.09%

Franklin

$383,000 -19.87%

15 -6.25%

Holbrook

$372,000 15.89%

6 -45.45%

Medfield

$690,000 18.97%

9 12.5%

Medway

$398,000 -15.32%

9 12.5%

Millis

$437,400 4.14%

4 -63.64%

Milton

$692,500 9.92%

14 -26.32%

$1,102,000 7.25% 26

0%

Norfolk

$506,500 -8.53%

Norwood

$383,000 -10.93%

10

Plainville

$359,950 13.37%

10 150%

— Deval Patrick, 71st governor of Massachusetts and Milton resident

MEDIAN SALES PRICES 600000 $600,000 $500,000 500000 $400,000 400000 $300,000 300000 $200,000 200000

-50%

$500,000 10.99%

33 -13.16%

Randolph

$398,500 11.62%

18 -5.26%

Sharon

$520,000 15.56%

7 -46.15%

Stoughton

$325,000 -5.1%

13 -27.78%

Walpole

$454,125 -6.37%

18 20%

2011 ’11

2012 ’12

2013 ’13

2014 ’14

2015 ’15

2016 ’16

2017 ’17

2018 ’18

• All sales thru January 2019

2019 ’19

Norfolk Massachusetts

• Graph based on single-family home sales of $1,000 and above, excluding condominiums and foreclosure deeds • Source: The Warren Group

SALE VOLUME

Westwood

$761,500 -22.81%

14 16.67%

Weymouth

$389,500 1.17%

30 -9.09%

Wrentham

$500,000 12.99%

9 12.5%

Norfolk County

$498,950

354

-11.28%

• Statistics based on single-family home sales of $1,000 and above, excluding condominiums and foreclosure deeds • Source: The Warren Group

TOP 3 MORTGAGE LENDERS Rank

7500 7500 6000 6000 4500 4500

0

% of Market Share

1

Guaranteed Rate Inc.

4.13%

2

Leader Bank N.A.

4.08%

3

Quicken Loan Inc.

3.87%

TOP 3 LOAN ORIGINATORS

1500 1500 0

Lender

Rankings and Mortgage Market Share stats include purchase and refinance mortgages for single-family homes through December 2018 Market share percentage based on volume of mortgages • Source: The Warren Group

3000 3000

$1,382,000 4.46% 15 25%

9.18%

2010 ’10

4 -50%

Quincy

Wellesley

“A great teacher who is full of excitement and love for her students can make all the difference in their lives.”

N/A N/A N/A N/A

Bellingham

Needham

TOTAL NUMBER OF HOUSING UNITS 9,700

SALES VOLUME

Change from 2018

$20.20 $20.20

Rank

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ’10

’11

’12

’13

’14

’15

’16

’17

’18

’19

• All sales thru January 2019

• Graph based on single-family home sales of $1,000 and above, excluding condominiums and foreclosure deeds • Source: The Warren Group

Lender

Organization

1

Sueann Sheehan

First Republic Bank

2

Shant Banosian

Guaranteed Rate Inc.

3

Seth E. Goodwin

Wells Fargo Bank N.A.

Ranked by volume of loans through December 2018

TOP 10 EXISTING HOME SALES Street Address Community

Buyer Seller

Date Price

1

49 Margin St. Cohasset

Gerald Butler Peter A. Roy

11/14/2018 $12,500,000

2

282 Warren St. Brookline

John Hunt 282 Warren Street NT

3

67 Ledgeways Wellesley

4 5

Rank

Street Address Community

Buyer Seller

Date Price

6

396 Jerusalem Road Cohasset

396 Jerusalem Road RT Jason H. Soules

1/4/2019 $3,350,000

1/2/2019 $10,000,000

7

62 Strawberry Hill St. Dover

Split Rock RT Tamatha R. Macwilliams

11/16/2018 $3,250,000

Christopher K. Hart Ledgeways LLC

12/3/2018 $3,995,000

8

17 Glenoe Road Brookline

Chez Nil RT Marc R. Reinganum

1/2/2019 $3,200,000

22 Croton St. Wellesley

Aixia Bi JB RT

1/4/2019 $3,750,000

9

7 The Waterway Wellesley

Joshua L. Grodin Mark R. Jarrell

12/21/2018 $3,150,000

27 Ledgeways Wellesley

Robert J. Fitzpatrick Barnhart Baribeau RT

11/5/2018 $3,597,750

10

80 Dudley St. Brookline

80 Dudley LLC Sieon Sanieoff

11/15/2018 $2,974,000

• Statistics from Nov. 2018 - Jan. 2019 • New Construction Excluded • Source: The Warren Group

Rank

MARCH 11, 2019

BANKER & TRADESMAN | 7

COMMERCIAL REAL ESTATE C H E L M S F O R D AT T H E C R O S S R O A D S

Retrofitting Suburbia Town Sends Development-Friendly Message, But Is It Enough?

BY STEVE ADAMS BANKER & TRADESMAN STAFF

W

ell-situated Route 128 communities such as Burlington, Needham and Waltham have resuscitated moribund office parks with multifamily housing, restaurants and retail, enhancing their appeal to corporate employers tempted by downtown options.

Can towns along the Interstate 495 belt duplicate their success? Or do outer-ring suburbs need a different approach to maximize 21st century real estate patterns?

A test case is playing out in Chelmsford.

Two years ago, the town rezoned more than 600 acres off Route 3 with the goal of cutting office vacancies and encouraging mixed-use conversions similar to The District and 3rd Avenue in Burlington.

After Zoning Changes, Waiting

Since then, vacancies in Chelmsford’s 6 million-square-foot office market have declined from 47 percent to 32 percent, according to research by Colliers International in Boston.

New landlords have filled some of the low-rise office buildings on Route 129 with firms in robotics, biotech, and financial services, along with nonprofits and public agencies.

But transformative projects have failed to materialize. The new owners of a key parcel near the Route 3 interchange are taking a conservative approach, attempting to lease vacant office space before exploring additional development. And commercial brokers say there’s more demand for flex industrial space than traditional office uses in Chelmsford. That puts the responsibility on landlords to invest in retrofits despite the lower rent structures in outer suburbs.

“The town has really done as much as they can do as far as rezoning and making it easy for companies,” said Greg Klemmer, an executive vice president at Colliers who specializes in suburban leasing. “They can’t create industries or create demand. They just have to be positioned in the right way when demand comes.”

Now it’s the state’s turn. The Baker administration last year awarded a $90,000 grant to Chelmsford as part of MassDevelopment’s site readiness program. Chelmsford is using the money to pay for a real estate market analysis

by Boston-based Camoin Assoc. and to hire a new economic development coordinator, Lisa Marrone.

Marrone is overseeing a branding campaign for the Route 129 corridor, including development of promotional videos, a web site and logo to promote the Chelmsford Cross/Roads at Route 129 region.

A Wake-Up Call in the Merrimack Valley

Tech firm Kronos Inc. moved to Lowell’s Cross Point towers in 2017, leaving more than 300,000 square feet of vacancies at its former Chelmsford offices. Kronos’ exit dealt another blow to an office market in which vacancies have consistently topped 20 percent since 2014.

Chelmsford officials successfully pushed through an overlay district designed to attract live-work-play developments with flexible, fast-track permitting for retail, multifamily and hotels. One multifamily project has been approved so far, a 168unit apartment complex at 104 Turnpike St. which broke ground in November. Another, Princeton Properties’ 108-unit Mill and 3 complex, was previously permitted under the state’s Chapter 40B affordable housing law. And a developer is seeking to attract a brewpub-style tenant to 197 Billerica Road, hoping to attract the first new dining option since the rezoning passed.

“This is the first time since the overlay has been adopted that we’re beginning to hear of property owners who have reported serious interest in retail and restaurants, so this is very exciting,” said Evan Belansky, Chelmsford’s community development director.

Chelmsford officials had high hopes for the future of the 21-acre former Mercury Systems campus at 199-201 Riverneck Road, near the Route 3-Route 129 interchange. The property,

Chelmsford is promoting its commercial corridor as The Cross Roads at 129 to draw attention to its flexible zoning for retail, multifamily and hotel development.

with two office buildings spanning 185,000 square feet, has five undeveloped acres and potential for retail and hotel projects with highway visibility.

Manchester, New Hampshire-based Brady Sullivan Properties and CW Capital acquired the vacant property at auction for $5.2 million in December 2017 and are marketing the office space for lease.

James Tobin, a leasing representative for Brady Sullivan, said the company may explore additional development after securing tenants for the existing 2-story buildings.

“Chelmsford seems to be showing a willingness to play ball with developers down there,” Tobin said. “We’ve seen a lot of R&D requirements coming to the market, but we’re seeing office requirements as well.”

Chelmsford officials had high hopes for the future of the 21-acre former Mercury Systems campus at 199-201 Riverneck Road, near the Route 3 and 129 interchange.

Rising Industrial Demand a Factor

With affordable office space for sale, Marlborough-based Digital Credit Union acquired the 125,000-square-foot former Kronos headquarters at 297 Billerica Road for $12.4 million in 2017. DCU currently has 150 employees at the Chelmsford operations center, with potential expansion to nearly 1,000 with a potential building expansion enabled by the zoning overlay, DCU spokesman Edward Niser said.

Framingham-based SVN Parsons Commercial Group acquired part of the former Kronos campus at 2, 4 and 6 Omni Way in 2018 for $8.5 million and has leased up all but 22,500 square feet of the 215,665-square-foot portfolio.

SVN Parsons originally considered redeveloping 2 Omni Way as retail space, said Matthew Quinlan, SVN Parsons’ assistant managing director of brokerage. But office leases

by First Light Bio, robotics manufacturer Autoguide and the Massachusetts Department of Children and Families filled up the building and made redevelopment unnecessary.

Other landlords may add flex industrial space to existing office buildings, responding to tenant demand, Quinlan said.

“There’s some potential for biotech and some light assembly manufacturing, because the pricing in Burlington and Waltham and Lexington is pushing people out and they can find pretty good values,” he said.

Retail development may accelerate following completion of more housing, but a shortage of sizeable development parcels remains an obstacle, Colliers’ Klemmer said.

“Retail guys would go in there tomorrow, but the problem up there is the most logical buildings were Omni Way to knock down and create some sort of a hotel and retail at the beginning of the street for everybody. Without some critical mass of property, you’re not going to get a MarketStreet Lynnfield.”

Email: sadams@thewarrengroup.com

HOT PROPERTY WHAT: 255 WYMAN ST.

Each week, Banker & Tradesman commercial real estate reporter Steve Adams spotlights a commercial real estate property in Massachusetts notable for its high deal activity, unique design or one-of-a-kind special features.

WHERE: WALTHAM OWNER: HOBBS BROOK MANAGEMENT BUILT: 2019-2020

• Hobbs Brook Management will break ground this spring on 225 Wyman St., a 500,000-square-foot speculative office and lab project that will comprise the largest contiguous class A building on Route 128.

• The 5-story, lab-capable building is designed by Gensler to attain LEED Silver certification. The project includes a parking garage, courtyards and outdoor seating and walking trails designed by OJB Landscape Architecture.

• JLL Boston represents Hobbs Brook Management in leasing. Completion is scheduled for late 2020.

THEY SAID IT:

“We successfully worked with Hobbs Brook on the 312,000 square foot lease of 175 and 185 Wyman St. which was delivered to the market on a speculative basis. It’s our hope to repeat this success with 225 Wyman.”

— Alex Dauria, managing director, JLL

THINK YOUR PROPERTY IS HOT? Drop Steve a line at sadams@thewarrengroup.com

8 | BANKER & TRADESMAN

MARCH 11, 2019

IN PERSON

Deciphering the Fine Print of Real Estate Auctions

Q: What’s Sullivan & Sullivan’s niche within the industry?

A:

We’re a commercial auctioneering firm. We conduct foreclosures, condominium lien sales and we have diversified into the municipal auction market as well when we saw a decrease in foreclosures over the last five years. Now we hold contracts with the state of Rhode Island, Massachusetts and several major cities and towns. It’s really become another presence for our company: non-payment of real estate tax auctions all over the state. It’s big business. We’re continuing to invest in technology and always looking to the future of this industry. Online auctions are driving the market, so the business is really going to change within the next few years.

Q: When did you know you were ready to start your own company?

A:

I started the company in 2007 in Boston, renting a desk at a real estate office because I was very nervous and I had never run my own company before. Then we moved to the Cape and bought a property on Route 6A, and this is our headquarters. I’d had an opportunity to learn the auction business for 15 years and had great training and great leaders, but I knew I wanted my own company at that point. I wanted to be an expert and wanted my ethics to dictate what I could do, so I needed to have my own company and employees. About a year ago we were scheduling 175 auctions a month, but now obviously the economy is good and foreclosures are down. There are always some new moratoriums and case law, and it really keeps these law firms very busy.

Q: Did your father join the firm at the outset?

A:

He was part of the startup team. He is basically retired now and only works on a part-time basis, but he gave me everything that I need. He was in refrigeration and restaurant equipment and used to go to auctions. That’s how he knew Mr. Saperstein and that’s how I started to work with them.

Q: What are some of the complications of conducting a real estate auction?

A: Rhode Island, New Hampshire and Massachusetts are non-judicial foreclosure states, so we have to conduct auctions on or about the property. Sometimes properties are occupied. It’s a sensitive situation. It could be occupied by an owner or a tenant.

We have to be sensitive to all of the situations. We try to understand their difficulties and call the attorneys and be constantly relaying information, just to make sure that every opportunity has taken place that the foreclosure doesn’t go forward.

We’re just the messengers. We’re the auctioneers and we’re trying to facilitate an auction and an order from the attorneys we work with. It’s a very delicate situation.

MARIANNE SULLIVAN

Q: How are you using technology to enhance your services?

A:

Title: Founder, Sullivan & Sullivan Auctioneers Age: 54 Industry experience: 30 years

It’s been such a big investment for us. I think we’re the only firm which has a client login wherein our clients and banks can access a database that gives them any information they would be requesting on a piecemeal basis. All of our reports are accessible for the client.

BY STEVE ADAMS BANKER & TRADESMAN STAFF

A

fter a career start as a title examiner, Marianne Sullivan got her first taste of the real estate auction business when she joined Paul Saperstein Co. After 15 years, We are hired by banks she was ready to strike out and lawyers, and they are on her own and founded working under the strict her own auction house, Sandwich-based Sullivan & guidelines of the national Sullivan Auctioneers. The servicers, so we try to keep company has six employees that in mind when it comes and conducts approximately to compliance, training, 100 real estate auctions a security and technology. month in Massachusetts, New Hampshire and Rhode Island, with its expanding presence in the tax foreclosure business picking up the slack as foreclosures have declined.

I train our auctioneers and agents to go above and beyond. What time did you arrive at the property? How many qualified bidders did you have? What time did you make a certificate of entry? What was the weather? Who were the qualified bidders? They’ll be able to access everything, and we always keep the servicer in mind.

We are hired by banks and lawyers, and they are working under the strict guidelines of the national servicers, so we try to keep that in mind when it comes to compliance, training, security and technology. The servicers want to make sure they do business with people who are compliant and up-to-date on industry standards and knowledge.

SULLIVAN’S FIVE FAVORITE WAYS TO ENJOY THE SUMMER:

1

Performances at The Cape Playhouse

2

Visiting shops along scenic Route 6A

3

Cool sounds at Cape Cod Jazz Festival

4

Cruising in her ’56 Oldsmobile Super 88

5

Summer breezes at the Nantucket Hotel

MARCH 11, 2019

BANKER & TRADESMAN | 9

RESIDENTIAL REAL ESTATE THE NEXT FRONTIER

Will Technology Innovations in Real Estate Ever Replace Brokers?

How Brokers Can Stay Ahead of ‘iBuying’ Trend

BY AMY MIZNER AND SHERYL SIMON SPECIAL TO BANKER & TRADESMAN

T

echnology impacts every area of our lives. Innovation continues to change and often improves the way we do business. While embracing these promising technologies is Amy Mizner essential to staying current with clients, understanding the limitations of these new platforms must also be considered when helping clients determine the best path forward when it comes to buySheryl Simon ing or selling a home.

REX, a technology-focused platform that boasts it does not use MLS, raised $15 million in series B funding in January. REX pairs buyers and sellers together on a digital platform and the attraction of the technology is that it meets buyers and sellers wherever they are. Piloted last year in Colorado, California, Texas, New Jersey and New York, the company has raised more than $75 million to date. Also appealing to both buyers and sellers is that the entire transaction is conducted online, and REX charges a lower commission than brokers normally charge.

Offerpad is another up and coming real estate technology platform that generates valuations and offer prices to assist both buyers and sellers through a proprietary algorithm.

You can pick your own closing date, there’s no need for open houses or showings and the package includes a local move.

And another company in this new frontier targeting the “iBuyer” space is Opendoor. It’s gaining traction in the southern states for its ability to generate a home valuation that, if the seller accepts the price, will buy it outright with a 6.5 percent transaction fee. Of course, there are a few restrictions – they will only make offers on homes that were built post1960 and the valuation of the property must fall between $175,000 and $500,000.

Brokers Must Adapt

With more bright and shiny options than ever before attracting buyers and sellers, the role of the real estate broker must adapt. According to Matt Harris, a partner at Bain Capital, iBuying is the most significant financial trend in real estate today. Critics argue that these companies are trying to put more traditional real estate companies out of business, while others suggest that there’s room for everyone in this new frontier of real estate.

As brokers, it is our job to be the most informed professional in the room. From introductory listing presentations to advising on offer prices to guiding clients through their transactions.

Here are three ways that you can stay ahead of the curve:

Do your homework. Subscribe to real estate news channels to read about the latest trends and what our industry thought leaders are saying about iBuyers. List the pros and cons of each of these new entrants into the market and be prepared to advise clients on their merits and shortcomings. Even if some people decide to go the full digital route, you can serve as a trusted advisor and that can pay dividends on their next transaction or keep you top of mind as a referral to others.

Own your local market. The more knowledge you have in your market, the easier it is to demonstrate your value to potential clients.

Be sure you know what’s coming on and going off the market, pricing changes, and property features and benefits. This is especially valuable when inventory is historically low as it is now. Having an expert advisor on your side can help clients make better decisions.

Embrace technology and harness it. Forbes recently reported on a survey conducted by Owners.com that showed 33 percent of home-

buyers wished their agent had leveraged technology to better streamline the process. What does your company offer to help facilitate a smooth transaction? Do you have a mobile app? Online forms? Skype conferencing?

The role of a broker as a trusted advisor to buyers and sellers will never go away. While our job description may change as technology continues to evolve, there are some things that it can’t replace, like the warmth and understanding clients get from a personal connection. A broker who radiates knowledge and is a true partner will be there to advise their clients on every aspect of this changing terrain to ensure the best possible outcome for everyone involved.

Amy Mizner and Sheryl Simon are principals of Benoit Mizner Simon & Co., a residential real estate company servicing MetroWest Boston with offices in Wellesley, Weston, Needham and Sudbury.

GOSSIP REPORT 1

5

WELLESLEY

1

Address: 66 Edmunds Road, Wellesley Price: $4,275,000 Buyer: Joshua A. Golden Seller: 66 Edmunds Road LLC Size: 6,354 square feet on 0.61 acres Sold: 2/20/2019

2,4

The fifth home in this week’s Gossip Report is a lovingly preserved, elegant Cambridge Victorian with a tall ceilings and original molding around the parlor fireplace. The large, eat-in kitchen has a wall of windows giving views of a lush back garden, new deck and goldfish pond.

3 2

BOSTON

Address: 160 W Canton St., Boston Price: $3,895,000 Buyer: Peter McLoughlin Seller: Jean E. Gibran Size: 4,585 square feet Sold: 2/22/2019

3

NANTUCKET

Address: 24 Fair St., Nantucket Price: $2,780,500 Buyer: My Fair Lady NT Seller: James B. May and Roma C. May Size: 2,856 square feet on 0.07 acres Sold: 2/20/2019

4

BOSTON

Address: 476 Beacon St. #2, Boston Price: $2,725,000 Buyer: Spencer Hoffman and Sarah Millet Seller: David Orfao and Mary E. Orfao Agent: Lili Banani, Coldwell Banker Residential Brokerage Size: 1,610 square feet Sold: 2/25/2019

5

CAMBRIDGE

Address: 42 Prentiss St., Cambridge Price: $2,675,500 Buyer: Pamela Slater-Gilman Seller: Margot Kaplan-Sanoff and Robert S. Sanoff Agent: Carol Kelly, Rachel Miller and Shannah Hall, Carol Kelly Team, Compass Size: 3,049 square feet on 0.13 acres Sold: 2/26/2019

10

2018 TOP LENDERS A SPECIAL SECTION OF BANKER & TRADESMAN

MARCH 11, 2019

TOP LENDERS

Residential Gains from First-Time Homebuyers, Wealthier Clients Continued from Page 1 one to four units through teardowns, significant renovations or subdivisions, said Gerry Nadeau, president and chief commercial banking officer at Rockland Trust.

With an average residential construction loan of $1.3 million in 2018, Rockland’s portfolio required significant underwriting activity, Nadeau said, but the bank pursued this course by design.

“We really like having a lot of granularity in our commercial real estate portfolio,” he told Banker & Tradesman. “Larger banks often are very strong on larger transactions, but not usually as focused on smaller loan types.”

The largest loan the soon-to-be $11 billion-asset bank issued last year was $18 million, despite having an in-house lending limit of $100 million.

Most of Rockland’s residential construction loans were made in three geographies.

Many went to the usual suspects –wealthier Greater Boston suburbs such as Newton, Wellesley and Weston – and mostly for significant renovation and teardown projects.

Simultaneously, the bank also did significant business in communities along the Interstate 495 beltway such as Franklin, Bellingham and Wrentham, Nadeau said, where there are still some large, undeveloped parcels. Elsewhere outside the state’s most expensive com-

munities, the bank did relatively little lending on the North Shore, but provided financing for many residential construction projects on the South Shore in communities such as Carver, Middleborough, Pembroke and Plymouth.

Premier Clients Powered CSB’s Success

Cambridge Savings Bank also made the top commercial lenders list, largely by sticking to smaller loans.

The bank did a lot of $1 million loans in its backyard in Cambridge and Arlington but also did bigger deals in the $5 million to $30 million range, many of which were done with one of the bank’s main partners, National Development, according to Chief Lending Officer Michael Lindgren.

“We have a very strong premier client base and we are not trying to be everything to everybody,” Lindgren said, adding that the bank’s approval process is very quick. “We have chosen really strong sponsors who want and demand and respect our type of service. We get very strong terms in terms of structuring loan-tovalue [ratios].”

Lindgren also said the bank actively lent to support multifamily construction projects. Within this sector, Cambridge Savings focused on projects in areas with affordable

As more community banks are bought, Rockland Trust President Gerry Nadeau believes his bank’s experience in the space will leave it well positioned to fill gaps in the market.

Continued on Page 14

Align Credit Union has been focused on matching our Members with the right loan since 1922.

Thank you to Banker & Tradesman for recognizing us as one of the 2018 Top Lenders in Massachusetts.

Whether you need a great rate on a commercial loan or a customized mortgage, speak with our lending team today.

AlignCU.com (800) 942-9575

NMLS ID 423280

Rockland Trust and Cambridge Savings Bank distinguished themselves in several mortgage origination categories, according to data from The Warren Group, publisher of Banker & Tradesman.

F

or more than 145 years, The Warren Group has been the most trusted and reliable source in New England for real estate property data. The company maintains the most comprehensive property database today due to its long-standing relationships with town assessors, clerks and county registries as well as its extensive daily collection of transaction records in the field.

Transactional data is collected daily, verified, matched to the appropriate property record and posted weekly; it includes sales transfers, mortgages and refinances.

The data in this report represents purchase and non-purchase loans made by banks, credit unions and mortgage com-

panies in Massachusetts in 2018. Category breakdowns include purchase mortgages for single-family, multifamily (two-family and three-family combined), condominium and commercial properties, as well as non-purchase residential loans (includes refinances and HELOCs). Residential and commercial data are not combined in any reports. The commercial data in these reports caps all loans at $1 billion. Each category ranks the top 10 lenders by both dollar volume and number of loans.

For more information, please contact The Warren Group’s customer service department at customerservice@thewarrengroup.com or 617-896-5388.

COMMERCIAL HOME EQUITY LENDING LOANS

MORTGAGES

+ AMESBURY + DANVERS + FRAMINGHAM + HAVERHILL + LOWELL + METHUEN + WILMINGTON +

MARCH 11, 2019 BANK

CREDIT UNION

BANKER & TRADESMAN | 11 MORTGAGE CO.

Single-Family Purchase Loans Bank Number of Loans

2018 TOP LENDERS Condominium Purchase Loans Bank Number of Loans

Leader Bank

1,765

RBS Citizens Bank

Mortgage Company Number of Loans

Credit Union Number of Loans

Leader Bank

961

Harvard University Credit Union

169

Guaranteed Rate Inc.

986

Wells Fargo Bank

442

Digital Federal Credit Union

167

Fairway Independent Mortgage

1,446 784

Wells Fargo Bank

864

First Republic Bank

392

Metro Credit Union

87

Residential Mortgage Services Inc.

588

Santander Bank

851

Santander Bank

392

Jeanne D’Arc Credit Union

85

Mortgage Network Inc.

522

Bank of America

820

Bank of America

359

Rockland Credit Union

44

United Shore Financial Services LLC

449

Cape Cod Five Cents Savings Bank

767

RBS Citizens Bank

346

Navy Federal Credit Union

32

LoanDepot.Com LLC

385

Envision Bank

510

Blue Hills Bank

228

Align Credit Union

23

Quicken Loan Inc.

346

Blue Hills Bank

474

Cape Cod Five Cents Savings Bank

219

Direct Federal Credit Union

21

Cross Country Mortgage Inc.

292

Rockland Trust Co.

439

Eastern Bank

162

Greylock Federal Credit Union

21

First Choice Loan Services Inc.

289

USAA Federal Savings Bank

369

Envision Bank

138

Workers Credit Union

21

Salem Five Mortgage Co.

286

Bank Volume of Loans

Credit Union Volume of Loans

Bank Volume of Loans

Leader Bank

$827,017,647

Wells Fargo Bank

$536,694,405

Bank of America

$461,734,519

RBS Citizens Bank

Mortgage Company Volume of Loans

$364,350,101

Harvard University Credit Union

$75,557,101

Guaranteed Rate Inc.

First Republic Bank

$306,464,677

Digital Federal Credit Union

$41,533,996

Fairway Independent Mortgage $261,806,903

Wells Fargo Bank

$251,593,850

Metro Credit Union

$30,786,175

Mortgage Network Inc.

$425,650,497

Bank of America

$186,610,428

Jeanne D’Arc Credit Union

$21,108,558

Residential Mortgage Services Inc. $162,431,292

First Republic Bank

$360,812,471

RBS Citizens Bank

$128,168,912

Rockland Credit Union

$10,591,211

LoanDepot.Com LLC

$130,335,158

Santander Bank

$338,462,831

Santander Bank

$120,649,594

USA Alliance Federal Credit Union

$10,401,050

First Choice Loan Services Inc.

$124,615,869

$10,309,575

United Shore Financial Services LLC $116,816,251

Cape Cod Five Cents Savings Bank $308,434,213

Leader Bank

Blue Hills Bank

$95,306,064

Navy Federal Credit Union

$73,354,896

$583,328,250 $174,597,533

Blue Hills Bank

$226,256,091

Boston Private Bank

Baxter Credit Union

$8,744,140

Washington Trust Mortgage Co. $106,863,428

Rockland Trust Co.

$189,828,440

Cape Cod Five Cents Savings Bank $60,826,314

Direct Federal Credit Union

$7,643,459

Quicken Loan Inc.

$93,692,434

Envision Bank

$175,960,000

Eastern Bank

Liberty Bay Credit Union

$7,583,600

Cross Country Mortgage Inc.

$83,570,843

$56,502,037

Credit Union Number of Loans Digital Federal Credit Union

419

Greylock Federal Credit Union

327

Navy Federal Credit Union

241

Metro Credit Union

186

Jeanne D’Arc Credit Union

181

Harvard University Credit Union

164

Polish National Credit Union

136

Freedom Credit Union

130

Rockland Credit Union

102

Workers Credit Union

102

Credit Union Volume of Loans Digital Federal Credit Union

$133,639,323

Navy Federal Credit Union

$95,708,297

Metro Credit Union

$85,318,678

Harvard University Credit Union

$80,222,694

Jeanne D’Arc Credit Union

$71,933,991

Greylock Federal Credit Union

$56,619,661

Rockland Credit Union

$34,620,812

Polish National Credit Union

$28,619,300

Central One Federal Credit Union $27,991,935 Workers Credit Union

$27,761,006

WE’RE ALL ABOUT FINDING THE RIGHT LENDING OPTIONS – FOR YOU AND YOUR BUSINESS. Let’s start our relationship today.

Robert Kershaw 617.441.7048

Mortgage Company Number of Loans Guaranteed Rate Inc.

2,518

Fairway Independent Mortgage

2,280

Residential Mortgage Services Inc.

2,262

Mortgage Network Inc.

1,509

United Shore Financial Services LLC

1,459

LoanDepot.Com LLC

1,286

Quicken Loan Inc.

1,263

Salem Five Mortgage Co.

793

Cross Country Mortgage Inc.

788

Homebridge Financial Services Inc.

772

Mortgage Company Volume of Loans Guaranteed Rate Inc. Fairway Independent Mortgage

$1,115,547,297 $850,196,457

Residential Mortgage Services Inc. $725,705,301 Mortgage Network Inc.

$585,353,930

LoanDepot.Com LLC

$488,309,092

United Shore Financial Services LLC $475,800,445 Quicken Loan Inc.

$419,264,883

Cross Country Mortgage Inc.

$307,541,988

Salem Five Mortgage Co.

$297,673,839

Homebridge Financial Services Inc. $279,464,071

Visit cambridgesavings.com/b&t NMLS ID# 543370

12 | BANKER & TRADESMAN

MARCH 11, 2019

2018 TOP LENDERS

THE BEST KEPT SECRET IN MORTGAGE BANKING

Residential Refinance Loans Bank Number of Loans RBS Citizens Bank

We’ve got all the best people. . . Except you.

30 Year Massachusetts Purchase Leader Single Family Homes (#4) Condos (3#) Multifamily Homes (#5) Refinance Loans (#10)

Unlock your possibilities today at www.MortgageNetworkCareers.com

Bank Volume of Loans RBS Citizens Bank

$1,968,591,851

Bank of America

10,022 6,279

Bank of America

$1,409,078,672

Santander Bank

4,214

Santander Bank

$844,232,640

Eastern Bank

3,028

First Republic Bank

$696,372,675

TD Bank

2,733

Rockland Trust Co.

$601,914,450

Rockland Trust Co.

2,721

TD Bank

$559,173,637

Cape Cod Five Cents Savings Bank

1,729

Eastern Bank

$530,012,088

Leader Bank

1,251

Cape Cod Five Cents Savings Bank $463,560,876

Main Street Bank

1,116

Leader Bank

$377,134,354

Century Bank and Trust Co.

1,041

JP Morgan Chase Bank

$320,937,642

Credit Union Volume of Loans

Credit Union Number of Loans Digital Federal Credit Union

3,409

Digital Federal Credit Union

$390,867,576

Hanscom Federal Credit Union

1,270

Metro Credit Union

$210,485,750

1,169

Hanscom Federal Credit Union $169,963,478

Rockland Credit Union Metro Credit Union

946

Rockland Credit Union

$131,901,649

Workers Credit Union

869

Workers Credit Union

$96,705,767

Jeanne D’Arc Credit Union

687

Jeanne D’Arc Credit Union

$93,350,819

Greylock Federal Credit Union

555

Direct Federal Credit Union

$85,075,471

Sharon Credit Union

524

Central One Federal Credit Union $69,179,548

Direct Federal Credit Union

520

Webster First Federal Credit Union $64,886,330

Webster First Federal Credit Union

512

Mortgage Network, Inc. 99 Conifer Hill Drive | Danvers, MA 01923 career@mortgagenetwork.com © 2019 Mortgage Network, Inc. NMLS ID# 2668. All rights reserved. Trade/servicemarks are the property of Mortgage Network, Inc. 99 Conifer Hill Drive, Danvers, MA 01923. Also doing business as MNET Mortgage/MNET Mortgage Corp. For full legal disclosure, visit www.mortgagenetwork.com License and Disclosure Information page. The information contained herein is intended for recruitment purposes only.

Sharon Credit Union

$62,415,610

Mortgage Company Volume of Loans

Mortgage Company Number of Loans Quicken Loan Inc.

4,978

Quicken Loan Inc.

$1,313,021,574

LoanDepot.Com LLC

2,031

LoanDepot.Com LLC

$582,588,132

Salem Five Mortgage Co.

1,351

Salem Five Mortgage Co.

$337,746,145

Nationstar Mortgage

1,190

Guaranteed Rate Inc.

$334,319,050

Guaranteed Rate Inc.

915

Nationstar Mortgage

$276,688,679

Fairway Independent Mortgage

912

Fairway Independent Mortgage $265,587,029

HarborOne Mortgage

815

Mortgage Network Inc.

Residential Mortgage Services Inc.

767

United Shore Financial Services LLC $222,802,942

United Shore Financial Services LLC

743

Residential Mortgage Services Inc. $185,314,367

Mortgage Network Inc.

642

HarborOne Mortgage

$223,737,374

$151,140,867

Leader Bank ranked #1 among banks in 2018 for purchase mortgages in Massachusetts Leader Bank’s competitive rates, innovative products, and first class service have earned the trust of Massachusetts realtors.

1 Single Family

#

1 Condos

#

1 Multi Family

#

Join our winning team!

www.leaderbank.com

Leader Bank ended 2018 closing $1.8 billion in total mortgage volume. We are always seeking high-performing, motivated Loan Officers. Contact Sean Valiton at svaliton@leaderbank.com or 781-641-8651.

Lender NMLS# 449250

MARCH 11, 2019

BANKER & TRADESMAN | 13

2018 TOP LENDERS Multifamily Purchase Loans Bank Number of Loans

Bank Volume of Loans

Leader Bank

210

Leader Bank

Santander Bank

182

Rockland Trust Co.

$74,509,623

RBS Citizens Bank

152

Santander Bank

$73,447,003

Rockland Trust Co.

138

RBS Citizens Bank

$70,909,949

Envision Bank

78

First Republic Bank

$42,468,550

Blue Hills Bank

77

Blue Hills Bank

$39,259,979

Eastern Bank

55

East Boston Savings Bank

$35,404,756

First Republic Bank

53

Hingham Institution for Savings

$32,744,045

TD Bank

51

Needham Bank

$32,619,850

Enterprise Bank & Trust Co.

49

Cambridge Savings Bank

$31,618,285

Credit Union Number of Loans

$112,098,234

RECOGNIZED AS A TOP LENDER!

by The Warren Group

Credit Union Volume of Loans

Metro Credit Union

34

Metro Credit Union

$15,315,834

Greylock Federal Credit Union

27

Digital Federal Credit Union

$13,835,993

Harvard University Credit Union

21

Harvard University Credit Union

$11,789,945

Jeanne D’Arc Credit Union

20

Jeanne D’Arc Credit Union

$10,532,450

Digital Federal Credit Union

19

Polish National Credit Union

$6,515,137

Align Credit Union

14

Align Credit Union

$6,162,270

Polish National Credit Union

12

Rockland Credit Union

$3,771,000

Workers Credit Union

10

Greylock Federal Credit Union

$3,597,019

Freedom Credit Union

8

Navy Federal Credit Union

$2,906,883

Southbridge Credit Union

8

Leominster Credit Union

$1,918,500

Mortgage Company Number of Loans

Mortgage Company Volume of Loans

Residential Mortgage Services Inc.

446

Guaranteed Rate Inc.

$156,110,107

Guaranteed Rate Inc.

314

Residential Mortgage Services Inc. $145,948,990

Fairway Independent Mortgage

287

Fairway Independent Mortgage $107,299,847

United Shore Financial Services LLC

215

United Shore Financial Services LLC $73,602,354

Mortgage Network Inc.

154

Mortgage Network Inc.

$62,088,918

Caliber Home Loans

139

Caliber Home Loans

$53,024,744

LoanDepot.Com LLC

128

LoanDepot.Com LLC

$50,623,285

Village Mortgage Co.

125

Cross Country Mortgage Inc.

$45,678,603

Cross Country Mortgage Inc.

123

MSA Mortgage LLC

$45,016,480

Radius Financial Group

110

First Choice Loan Services Inc.

$38,673,063

At East Boston Savings Bank, our experienced lending team is hard at work making sure you get the loan that’s just right for you. If you’re looking to partner with a top lending team, look to EBSB’s proven experienced lenders.

Call 800.657.3272 and let’s start working together today.

#3 Commercial Loans - Dollar Volume #4 Commercial Loans - Total Quantity #7 MultiFamily Loans - Dollar Volume

Member FDIC Member DIF

EBSB.com

THE WARREN GROUP | LOAN ORIGINATOR MODULE

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Dedicated to providing an AWESOME experience for YOU and YOUR CLIENTS. Fairway Independent Mortgage Corporation is proud to be recognized as one of the

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www.Fairway-NewEngland.com Visit www.thewarrengroup.com to view a sample report. Contact 617.896.5388 or email customerservice@thewarrengroup.com for more information.

Copyright©2019 Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-877-699-0353 Equal Housing Lender. MA Mortgage Broker and Lender License #MC2289.

Copyright©2018 Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-877-699-0353 Equal Housing Lender. CT License Number LO-1313138 Maine License Number 1313138. MA Mortgage

1957161

14 | BANKER & TRADESMAN

MARCH 11, 2019

2018 TOP LENDERS Commercial/Retail Loans Bank Number of Loans

Credit Union Number of Loans

Rockland Trust Co.

103

Mortgage Company Number of Loans

Digital Federal Credit Union

22

Guaranteed Rate Inc.

45

Eastern Bank

63

Align Credit Union

21

Salem Five Mortgage Co.

37

Enterprise Bank & Trust Co.

62

Taunton Federal Credit Union

15

Residential Mortgage Services Inc.

30

East Boston Savings Bank

56

Pawtucket Credit Union

10

Fairway Independent Mortgage

28

Leader Bank

56

Webster First Federal Credit Union

10

Pulte Mortgage Corp.

21

TD Bank

52

Metro Credit Union

9

HarborOne Mortgage

17

Cape Cod Five Cents Savings Bank

48

St. Anne’s Credit Union

9

United Shore Financial Services LLC

15

Main Street Bank

45

Freedom Credit Union

8

Mortgage Network Inc.

11

RBS Citizens Bank

38

First Citizens Federal Credit Union

7

Cross Country Mortgage Inc.

10

BayCoast Bank

34

Rockland Credit Union

7

SIC Property Finance

10

Bank Volume of Loans

Credit Union Volume of Loans

Mortgage Company Volume of Loans

Santander Bank

$347,041,939

Digital Federal Credit Union

$50,877,760

SIC Property Finance

$374,320,000

Wells Fargo Bank

$236,755,853

Metro Credit Union

$13,898,834

Ladder Capital Finance LLC

$169,125,000

East Boston Savings Bank

$209,972,699

Rockland Credit Union

$13,022,750

Cantor Commercial RE Lending LP $150,000,000

Brookline Bank

$192,390,450

Align Credit Union

$12,057,990

CBRE Capital Markets Inc.

$89,900,000

JP Morgan Chase Bank

$150,024,800

First Citizens Federal Credit Union $10,254,175

HarborOne Mortgage

$54,440,246

Key Bank

$147,200,000

St. Mary’s Credit Union

$6,887,500

Salem Five Mortgage Co.

$47,240,368

RBS Citizens Bank

$145,676,773

Taunton Federal Credit Union

$6,126,500

Walker & Dunlop LLC

$37,313,000

Cambridge Savings Bank

$129,836,108

St. Anne’s Credit Union

$5,206,800

Farm Credit East ACA

$27,639,500

Main Street Bank

$124,723,721

Freedom Credit Union

$3,602,000

Red Mortgage Capital LLC

$25,830,000

HSBC Bank USA

$104,720,000

Pawtucket Credit Union

$3,584,160

Berkaida Commercial Mortgage LLC $25,029,000

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Member FDIC. Ranking Published in the Banker & Tradesman “Top Lenders,” March 2016, March 2017, March 2018 & March 2019. Rockland Trust ranked #1 for number of purchased money loans in Commercial Mortgages category.

Rockland trust saw the largest amount of its mortgage dollars loaned on the South Shore, Cape Cod and the islands, where new construction has been prevalent.

Top Lenders Continued from Page 10 rents in the $2,000 to $2,500 range instead of in areas like Back Bay or the Seaport, where rents can be as much as $6,000 per month.

“As long as we see employment and population growth, we will continue to support that sector,” Lindgren said.

Leaders Keeping Weather Eye on Market

Going into 2019, both Nadeau and Lindgren expect another strong year for commercial lending but will be watching the market closely.

“We are obviously scrutinizing things more, anticipating as we look out that we don’t have the same runway that we had,” said Lindgren, who said Cambridge Savings is projecting growth in the 5 percent range for its commercial loan portfolio.

Nadeau said Rockland looked at and rejected more loan proposals this year than any other year in the history of the bank.

Looking ahead, he has some concerns about smaller construction loans because rising interest rates have made short-term profits harder to achieve in residential construction. But he also believes the current pace of consolidation will present opportunities for banks like Rockland that make smaller commercial loans. As more community banks are bought, he believes Rockland’s experience in the space will leave it well positioned to fill gaps in the market.

Residential Lenders ‘Fortunate’ to Serve Boston Area

Rockland Trust also made the top residential lenders list, originating 439 loans for a total volume of nearly $190 million, according to The Warren Group.

Nadeau said the strong year in residential construction loans translated into a solid residential purchase loan market.

Rockland saw the most mortgage dollars loaned on the South Shore, Cape Cod and the islands, where new construction has been prevalent.

The bank also saw success on different ends of the spectrum, from first-time homebuyers to some of its wealthier clients.

Rockland’s partnership with MassHousing and the Federal Housing Administration paid off and allowed the bank to work with firsttime buyers that had to stretch to get into their first homes.

The bank also has substantial residential business coming from Blue Hills Bank and plans to open a loan office in Worcester.

On the other hand, many of the bank’s wealthier clients shifted to 5-1 and 7-1 adjustable rate mortgages and the Boston market remains strong as well, despite a lack of inventory.

“Whether it’s the job market, education or health care, we have so much going for us,” said Nadeau, referring to the Boston market. “We are very fortunate to be where we are located.”

Email: bberkowitz@thewarrengroup.com

MARCH 11, 2019

BANKER & TRADESMAN | 15

National Development Subsidiary Buys South Boston Parcel for $12.5M

A

National Development subsidiary has added another parcel to the collection of industrial buildings it owns near South Boston’s Andrews Square.

As Banker & Tradesman first reported in August 2018, the Newton-based firm is assembling the parcels for a large development project.

A 2016 study by the Boston Planning and Development Agency projected a rezoning proposal it is working on could generate as much as 16 million square feet of new development on 144 acres between the MBTA’s

Broadway and Andrew stations over the next 20 years.

285 Washington St. was sold to SB Gateway IV LLC for $12.5 million on Feb. 27, according to documents filed with the Suffolk County Registry of Deeds. The 0.37-acre plot sits at the intersection of Dorchester Avenue and Old Colony Avenue and is currently occupied by Hong Kong Food, a produce wholesaler.

The Newton-based development firm bought a pair of contiguous 663-365 and 345 Dorchester Ave. parcels, which span nearly 4.3 acres, in September of last year.

Former Canton Resident Sentenced in Mortgage Fraud Case

A

dual U.S.-Irish citizen was sentenced in federal court in Boston on charges arising out of a multi-year mortgage fraud scheme.

Patrick Lee, 46, formerly of Canton and Easton, was sentenced to four years in prison, three years of supervised release and ordered to pay restitution of $842,552 to victim lenders. Lee will also be subject to asset forfeiture, in an amount to be determined later.

Lee pleaded guilty to wire fraud and making an unlawful monetary transaction in November 2018. He was extradited from Ireland in 2017 to face the charges, marking the first extradition from Ireland to the United States since 2012.

Lee engaged with others in a mortgage fraud scheme between July 2005 and May 2007. Specifically, Lee or a relative bought five multifamily buildings in Dorchester and South Boston, financed those purchases with fraudulently obtained mortgage loans and

quickly converted the buildings to condominiums which facilitated the resale of individual units in the buildings to straw buyers.

The straw buyers were recruited for this purpose and their purchases were financed with fraudulently obtained mortgage loans.

The straw buyers were assured that they would not have to put any money down or pay the mortgages, and that they would get a fee at closing and/or a share of the profits when the properties were sold.

The loans were funded with interstate wire transfers from the mortgage lenders to the closing attorneys’ conveyancing accounts, and the proceeds were then distributed to Lee and/or a family member, the recruiters, and others involved in the scheme. According to the government, mortgage lenders suffered losses of about $3.9 million. Many of the lenders are no longer in business or no longer hold the fraudulent loans at issue.

Recession Would Leave WeWork – and Market – in Trouble Continued from Page 3 WeWork charges members a monthly fee, rather than for a certain number of square feet, so it can be hard to make direct comparisons.

That said, a recent report by consulting firm CB Insights found WeWork manages to squeeze five office renters into the space normally reserved for a single worker in a traditional office space layout, or five per 250 square feet.

Based on the average member revenue of $6,641 per year, that’s $33,205 in revenue for every 250 square feet – a cut above and then some from what even the priciest towers are charging.

“Underneath this aspirational culture is a fundamental business truth. The company makes money primarily through rent arbitrage: charging its members more than it has to pay its landlords,” CB noted. “The principal means of accomplishing this is by packing a lot of people into its locations.”

Yet despite this huge amount of rent, We-

Work, which was launched, continues to lose money, shedding more than $400 million in the first nine months of 2018 alone.

One can only imagine what will happen when the economy takes a dive, as it must and will, whether this year or, more likely 2020 or 2021.

As the freelancers, entrepreneurs, solo practitioners and other assorted small businesses renting WeWork space lose contracts and revenue, they may very well decide their garage, their home office, or their local Starbucks is suddenly a more appealing option than spending thousands of dollars a month on fancy downtown digs.

Here’s hoping the owners of Boston’s office towers truly know what they are getting into as they turn over an ever-larger share of the city’s office market to WeWork.

IN EVERY COMMUNITY, WE SEE OPPORTUNITY. MassDevelopment provides financing and real estate solutions to hundreds of projects across Massachusetts. Our collaborations create jobs, revitalize communities, and stimulate the local economy. Visit MassDevelopment.com or call 800.445.8030 and ask to speak with one of our economic development professionals.

@MassDev

Scott Van Voorhis is Banker & Tradesman’s columnist; opinions expressed are his own. He may be reached at sbvanvoorhis@hotmail.com.

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16 | BANKER & TRADESMAN

MARCH 11, 2019

CLASSIFIEDS SECTION

THE ONE PLACE TO FIND OPPORTUNITIES

Classified Ads can also be accessed online. Visit bankerandtradesman.com and click on The Marketplace.

RESIDENTIAL REAL ESTATE

COMMERCIAL REAL ESTATE

AUCTION

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HELP WANTED

To Place an Ad in Classifieds, Please Contact Steve Ketler at 617-896-5307.

AUCTION J

MORTGAGEE’S FORECLOSURE

AUCTION

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MORTGAGEE’S SALE OF REAL ESTATE AT

PUBLIC AUCTION

NORFOLK 3-BAY CAR WASH WEDNESDAY, MARCH 13, 2019 AT 1:00 PM

BILL DELAHUNT PARKWAY & SHEA MEMORIAL DRIVE WEYMOUTH, MA

APPROXIMATELY 214 ACRES ZONED FOR UP T0 8 MILLION SQUARE FEET OF COMMERCIAL DEVELOPMENT INCLUDING OFFICE, INDUSTRIAL, RETAIL, AND HOSPITALITY USES. THE PROPERTY IS LOCATED ADJACENT TO THE SOUTH WEYMOUTH MBTA STATION AT THE SITE OF THE FORMER SOUTH WEYMOUTH NAVAL AIR STATION. TERMS OF SALE: $150,000.00 Deposit. Balance due in 30 days.

ALL DEPOSITS MUST BE IN THE FORM OF CERTIFIED CHECK OR BANK CASHIER’S CHECK. FOR FURTHER INFORMATION ON THESE AND OTHER PROPERTIES OR TO JOIN OUR MAILING LIST PLEASE VISIT OUR WEBSITE! WWW.RE-AUCTIONS.COM

31 New Chardon Street, Boston, MA 02114 PH: 617-646-1019 F: 617-646-1290 MA Lic. #835

36 Pine Street (Route 115) Friday, March 29 at 11AM

31,742± SF Lot improved by a 3,410± SF 3 bay car wash facility built in 2013, with office area and external vacuum stations.

Mortgage Reference: Norfolk Cty in Bk 31704, Pg 363 Terms: $25,000 Deposit; addt’l deposit of 10% due within 5 business days & balance due 30 days. Lauren A. Solar, Esq., Hackett Feinberg P.C., 155 Federal St, Boston, MA, Atty for Mort. Other terms announced at auction.

Accuracy of info is not guaranteed. Call or visit website for more info.

Sullivan-Auctioneers.com • 617-350-7700

V I S I T C L A S S I F I E D S. B A N K E R A N D T R A D E S M A N. C O M