Huge prices for commercial real estate reveals out of control climate

By Josh Resnek

Two recent real estate transactions for commercial properties in different locations in the city magnify the belief held among local real estate owners and realtors that the Everett commercial real estate scene is rising more quickly than any other sector of the business.

A transaction by Boston Sand and Gravel for a ten acre property located on the Island End River which separates Everett by water from Chelsea emphasizes the soaring prices paid for commercial real estate in the current marketplace.
Boston Sand and Gravel sold the 10 acre parcel for $15 million two weeks ago, according to information provided to the Leader Herald by Banker and Tradesman.

The parcel has been owned by the cement giant for many, many years, and had been for sale since 2011 before being sold recently.

The Rover Street LLC is the purchaser.

It appears the sale was made with cash as no mortgage was recorded, according to the Southern Middlesex Register of Deeds.

The land use attached to the property is commercial/sand quarry.

A visual inspection of the property this week shows sand being stored on the sprawling site which has an outlet to the Mystic River on the Island End River.

The exact square footage is listed in the Everett City Assessor’s office as 475,719.
As of 12/4/2017 the property was assessed by the city for $9,777,400.

Another transaction closer to the Revere Beach Parkway for property on Norman street once again highlights the tremendous uptick in prices for commercial property and raised eyebrows among local business owners and realtors.

The former Strogoff junk yard properties, two of them – 79-89 Norman Street – totaling 167,000 square feet, approximately 4 acres –  sold to an investment trust for $5,500,000.
This sale reveals a vast differential between the striking price for the property and its assessed value.

According to the Everett Assessor’s office, these parcels are presently assessed for $1,647,800 as of 12/4/2017.

The difference between the assessed value and the sales price reveals the demand and higher value for prime commercial parcels in the city’s industrial areas.

Unlike the sale of the Boston Sand and Gravel parcel, the Norman Street transactions required a mortgage from the Hingham Institute of Savings for $4 million as reported in Banker and Tradesman.

The assumption is that new owners, Investment Real Estate, put down 20% or slightly more than $1 million to accomplish the sale.

Both properties will shortly be erased for taxation purposes by the Assessor’s Office to reflect the new valuations and taxes to be paid to the city.

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