Banker & Tradesman, October 9, 2017

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www.bankerandtradesman.com

WEEK OF MONDAY, OCTOBER 9, 2017

financial

services

and

real

estate

weekly

for

massachusetts

A Publication of The Warren Group TARGET MARKET COMMERCIAL INTERESTS

Boston Real Estate Firms Increasingly Attractive Acquisitions Scaled Vertical Growth Necessary To Remain Competitive BY JIM MORRISON BANKER & TRADESMAN STAFF

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THROWING SHADE

Old South Church Holds Development Hostage With $19M Ransom BY SCOTT VAN VOORHIS | BANKER & TRADESMAN COLUMNIST

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pparently, the price of sunlight is going up in Boston. Way up. Back in 1999, the Old South Meeting House in Downtown Crossing hammered out a roughly $1 million settlement with a developer planning to build a 33-story office tower next door, citing the shadows it would cast. Fast forward to 2017. Old South Church off Copley Square now wants $19 million – a few million for repairs and another $15 million for affordable housing programs of its choosing – as compensation for a new tower planned a very long two blocks away above Back Bay Station.

Churches and nonprofits as well as neighborhood activists and projects opponents have played the shadow game for years, sometimes forcing developers to cough up a few extra hundred thousand or even fatally delaying some proposals. But Old South Church’s proposal definitely raises the stakes. Highway robbery is highway robbery, even if it’s a church that’s doing the stickup. I have covered development in Boston for years, but I have to admit I am not a shadow expert. Even so, Old South Church’s number seems picked out of sky above where Boston Properties hopes its new, 365-foot Back Bay tower will dwell. Continued on Page 3

CONTENTS Points ����������������������������������������������������������������������� 4

In Person ������������������������������������������������������������������ 7

Classified Sections ������������������������������������������������� 11

By The Numbers ������������������������������������������������������� 6

Banking & Lending ��������������������������������������������������� 9

Records Section ������������������������������������������������������ B1

he nationwide trend of real estate agencies mergers and acquisitions came to Boston this month with Douglas Elliman’s announced purchase of local Otis & Ahearn Real Estate. Smaller firms are feeling the pinch from rising costs and market forces, and more consolidations are likely. The increased attention from out-of-town players has been a major topic of conversation around the watercooler at Boston Realty Advisors, said Jason Weissman, founder and senior partner – and he couldn’t be happier about it. “It shows the strength of the market,” he said. “You have to look at Boston. If we end up going into a recession, Boston is going to have the softest landing of any city in the country because of the diversity of strong industries we have here. This city is going to outpace other cities.” Continued on Page 8 MONEY FOR NOTHING

Competition Heats Up In SBA Market Lenders Offering Better Terms, Less Money Down And Smaller Fees

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BY BRAM BERKOWITZ BANKER & TRADESMAN STAFF

s credit unions, large banks and community banks plunge deeper into the Small Business Administration loan market, the competition may drive financial institutions to offer better rates and loan terms to consumers, issue more SBA 504 loans and spur innovation. “We want to make as many SBA loans as possible,” said William Mullin, senior vice president of commercial lending at Worker’s Credit Union, which already regularly issues loans backed by the SBA. Late last year, Santander, another strong originator of SBA-backed loans in MassachuContinued on Page 9


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