of 2017 Est ab li s h e d 1 8 7 2
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WEEK OF MONDAY, OCTOBER 16, 2017
services
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real
estate
weekly
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massachusetts
A Publication of The Warren Group OPEN-DOOR POLICY
A Test Of Suburbs’ Resiliency Chelmsford Properties Offer Low Prices, Future Flexibility
INVESTING IN BANKS
ARE THE BUYERS OR SELLERS
THE BETTER PLAY?
BY STEVE ADAMS BANKER & TRADESMAN STAFF
C
helmsford isn’t the only Boston suburb struggling to fill vacancies in aging office buildings, but this Merrimack Valley community of 34,000 has been more responsive than most in positioning commercial properties for quick and flexible redevelopment. Last year the town rezoned 623 acres to allow developers to build hotels, retail and multifamily housing in place of the single-use office parks that line its main commercial district on Route 129. This week, brokers will get a better sense of how that strategy affects investor interest, as properties that formerly housed tech company Kronos Inc. and defense contractor Mercury Systems hit the auction block. The 21-acre former Mercury Systems property on Riverneck Road contains two office buildings totaling over 185,000 square feet. The property has visibility from I-495 and approximately five acres that could be suitable for new development.
Investors May See Better Returns With Acquisitive Banks Than Takeover Candidates
Continued on Page 9
COMMERCIAL INTERESTS
Dire Housing Shortage For Cape Residents Rental Conversions Decimate Mid-Range Market BY SCOTT VAN VOORHIS BANKER & TRADESMAN COLUMNIST
C
ape Cod has long been a tourist destination. Even so, there was always a sizable year-round population of regular folks – some newcomers drawn by booming restaurants and hotels, others with roots stretching all the way back to the Pilgrims. But the Cape now finds itself in danger of becoming not just an exclusive resort for the wealthy, but one that can’t even be bothered to make any provision for housing the help that does all the work, from cooking the meals to staffing the stores. More and more buyers are snapping up second homes on the sandy spit, stoking a dire affordability problem for the people who keep the Cape’s tourist economy humming, from restaurant workers and store Continued on Page 3
Most Acquisitive Publicly Traded Bank Holding Companies In Massachusetts 2011 - 2017 Berkshire Hills Bancorp MERGERS/ACQUISITIONS STOCK GAIN
(JAN. 2011 TO OCT. 11, 2017)
85%
Independent Bank Corp. Rockland Trust MERGERS/ACQUISITIONS STOCK GAIN
8
5
170%
(JAN. 2011 TO OCT. 11, 2017)
Brookline Bancorp MERGERS/ACQUISITIONS STOCK GAIN
(JAN. 2011 TO OCT. 11, 2017)
2
51%
BY BRAM BERKOWITZ BANKER & TRADESMAN STAFF
T
he common play for investors has long been to purchase shares in banks that are prime takeover candidates, hope they get sold and then collect a nice premium. But Sandler O’Neill, a firm that invests in banks in Massachusetts and nationwide, believes there’s a better approach. The investment banking firm in a recent industry note recommended buying stock not in the banks that may be sold, but rather in the banks making the purchases, or the most acquisitive banks. An analysis Sandler did of the stock price of the 21 most acquisitive banks between 2012 and 2017, none of which were in Massachusetts, showed an average return of 148 percent. Takeover premiums have been consistent in the 30 percent range over time, Sandler noted. While investing in takeover candidates or acquisitive banks can both reap significant rewards, they are ultimately two entirely Continued on Page 11
Strong Massachusetts Bank Acquisition Premiums DanversBank BUYER: PEOPLE’S UNITED BANK PREMIUM
35%
Legacy Bank BUYER: BERKSHIRE BANK PREMIUM
46%
Meetinghouse Bank BUYER: EAST BOSTON SAVINGS BANK PREMIUM
66%
Source: news articles and regulatory filings
Source: Massachusetts Division of Banks
CONTENTS
Residential ��������������������������������������������������������������� 8
Points ����������������������������������������������������������������������� 4
Commercial & Industrial ������������������������������������������ 9
By The Numbers ������������������������������������������������������� 6
Banking & Lending ������������������������������������������������� 11
In Person ������������������������������������������������������������������ 7
Classified Sections ������������������������������������������������� 14
Records Section ������������������������������������������������������ C1
SPECIAL SECTION Banker & Trademan’s Best ������������������������������������� B1