A major Boston housing and institutional developer, Related Beal, has made a significant purchase of three large parcels in the industrial area of Rutherford Avenue for a combined total of $74.45 million.
Related Beal has been a major developer in the housing scene over the past several years, bringing large apartment/condo projects to the market in the South End, Fenway and around the city. They are just finishing a project called The Quinn in the South End, former home to the Quinzani Bakery and are in the midst of developing a property under the Citgo sign in Kenmore Square. In 2019, they purchased the Benjamin Franklin Institute in the South End and have proposed residential, office and assisted living there on that former campus.
In Charlestown, on the industrial side of Rutherford Avenue, there has been speculation for many years – mostly from land-bankers and in this case a well-heeled company based in New York City that has been making large purchases in that area since 2015. However, nothing much has ever come of the purchases, but now – after a very positive meeting on the re-design of the Rutherford Avenue corridor and a set timeline for construction – the prospects seem to look more real.
The purchases include 420 Rutherford Ave. (the CubeSmart building), 440 Rutherford Avenue, and 6 Bunker Hill Industrial Park.
Related Beal said it was very excited to enter the market in Charlestown in an area that is clearly transforming from past uses to a more residential feel.
“Related Fund Management is thrilled to acquire this three-building portfolio in Charlestown,” read a statement from the company. “Related Beal has a longstanding history of creating innovative, mixed-use developments that serve a variety of uses. We look forward to conversations with the community, neighbors, and elected officials in the coming months regarding the future of this development.”
State Rep. Dan Ryan actually lives across from the parcels, and said he did take notice of the purchase and looks forward to having conversations with Related Beal as they venture out into the community.
“I did see, through social media, the major land acquisition a few hundred yards from where I’m raising the next generation of Charlestown residents,” he said. “I’ve always welcomed these transformative real estate development discussions, within reason. The redevelopment of this final Charlestown frontier has been budding for 20 years. This is why I have fought to get more voices in the crowd and more seats at the table. The Rutherford Avenue corridor is some of the most prime Real Estate on the East Coast right now. However, new development in this area should not proceed until we have the right roads, school seats, playing fields and other pertinent infrastructure that can support the type of transformation such acquisitions require.”
The purchase marks a very successful land-banking venture for the New York company, Center Capital Partners, who purchased the three parcels from 2017 to 2019 for a total of $36.9 million, and sold it this month for a combined $74.45 million. That equals out to a gross clearing of about $37.55 million for the company on the deal without having so much as proposed any changes.
The breakdown on the parcels is:
•420 Rutherford Avenue – bought in 2017 for $15 million and sold this month for $36 million.
•440 Rutherford Avenue – bought in 2015 for $14.7 million and sold this month for $25.95 million.
•6 Bunker Hill Industrial Park – bought in 2019 for $7.2 million and sold this month for $12.5 million.
Another property owner abutting the purchase includes DLJ Partners, who at one time owned 8 Bunker Hill Industrial Park, buying it in 2019 for $10 million from a construction materials company. That company is the same company that redeveloped 40 Warren St. into new office space and the Tatte Bakery.
They were not immediately available for comment on the purchase.
Other land abutting the parcels includes KTI/Casella Recycling, whose major recycling facility behind the parcels doesn’t seem like it’s going anywhere soon, and Boston Sand & Gravel.