SUMMARY MARKET ANALYSIS · PDF fileSUMMARY MARKET ANALYSIS Lowell High School Site Downtown...
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SUMMARY MARKET ANALYSIS
Lowell High School Site Downtown Lowell, MA
Prepared For:
Craig Thomas, Chief Design Planner Department of Planning and Development
50 Arcand Drive Lowell, MA 01852
Date of Valuation:
December 2015
December 22, 2015
Craig Thomas, Chief Design Planner Department of Planning and Development 50 Arcand Drive Lowell, MA 01852 RE: MARKET ANALYSIS ‐ Lowell High School Site, Downtown Lowell, MA 01852 Dear Mr. Thomas,
I respectfully submit herewith a summary market analysis for the Lowell High School site. This report puts forth my analysis of the relevant site characteristics and the market factors that influence development of the parcel.
I visited the exterior of the property on November 16, 2015. I did not perform an interior
inspection and do not have information on the condition of the buildings. The conclusions contained in this report are subject to the standard general assumptions
and the standard certification that are in conformance to the Uniform Standards of Professional Appraisal Practice.
The attached report has been completed in conformance to the Uniform Standards of
Professional Appraisal Practice (USPAP) guidelines.
Respectfully submitted, RP REALTY ADVISORS
Rose M. Perrizo Rose M. Perrizo, MAI Mass. Certified General Appraiser #1937 Certified through October 15, 2017
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TABLE OF CONTENTS
EXECUTIVE SUMMARY ......................................................................................................................... 2
AERIAL PHOTOGRAPH OF LOWELL HIGH SCHOOL ................................................................................ 3
SITE PLAN OF LOWELL HIGH SCHOOL ................................................................................................... 4
DESCRIPTION OF ASSIGNMENT ............................................................................................................ 5
IDENTIFICATION OF THE TYPE OF STUDY ................................................................................................................... 5 SCOPE OF ASSIGNMENT ......................................................................................................................................... 5 PURPOSE AND FUNCTION OF REPORT ...................................................................................................................... 6 COMPETENCY STATEMENT ..................................................................................................................................... 6
PROPERTY DATA .................................................................................................................................. 6
PROPERTY DESCRIPTION ........................................................................................................................................ 6 DOWNTOWN LOWELL OVERVIEW ............................................................................................................................ 9
MARKET AREA ANALYSIS .................................................................................................................... 15
DEMOGRAPHIC OVERVIEW ................................................................................................................................... 15 ECONOMIC OVERVIEW .......................................................................................................................................... 17 AVAILABLE DOWNTOWN LOWELL DEVELOPMENT SITES ........................................................................................... 18 OFFICE MARKET OVERVIEW ................................................................................................................................. 21 LOWELL RETAIL MARKET OVERVIEW ..................................................................................................................... 27 LOWELL RESIDENTIAL MARKET OVERVIEW ............................................................................................................. 33
HIGHEST AND BEST USE ..................................................................................................................... 40
ADDENDA
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS CERTIFICATION
QUALIFICATIONS OF THE APPRAISER
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EXECUTIVE SUMMARY Site Identification Lowell High School, 50 Father Morrissette
Boulevard, Lowell, MA 01852 Location/Access The property is located on the northern edge of the
core Downtown area, three blocks from the Merrimack River. Access to the regional highway system is via 1.2 miles of local streets (Arcand Drive, Thornton Street and Dutton Street) to the Lowell Connector which leads to Route 3 and Interstate 495, the region’s outer beltway.
Property Description The subject property comprises three non‐
contiguous sites and has frontage on Arcand Drive, Father Morrissette Boulevard, French Street, John Street, Paige Street, and Kirk Street.
The buildings were built in phases over the previous 100 years. Total site area is 285,043 square feet or 6.54 acres. The existing improvements total 794,378 square feet. The buildable potential of the site, based on the 4.0 FAR allowed under current zoning is 1,140,172 square feet.
Ownership City of Lowell – School Department Zoning DMU – Downtown Mixed Use Highest and Best Use There is a surplus of development‐ready sites in
Downtown and no market support for redevelopment of the subject site in the near future. Highest and best use is continued use of the site.
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AERIAL PHOTOGRAPH OF LOWELL HIGH SCHOOL
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SITE PLAN OF LOWELL HIGH SCHOOL
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DESCRIPTION OF ASSIGNMENT
Identification of the Type of Study Market analysis is defined as “a process for examining the demand for and supply of a
property type and the geographic market area for that property type .”1
There are numerous types of market studies ranging from the very general to site
specific. Based on the terms of the assignment, this is a summary market analysis that will
address economic conditions in Lowell’s core Downtown market, highlighting supply and
demand characteristics for likely reuses of the Lowell High School site.
Scope of Assignment
The term scope of the assignment means the extent of the process undertaken in
collecting, confirming, and reporting data in the appraisal report. I visited the exterior of the
subject property; investigated regional and local economic and demographic trends; reviewed
relevant market‐specific data as was found to be available; identified comparable properties;
and conducted interviews and independent market research. Data was collected from:
City of Lowell Craig Thomas, Chief Design Planner, Department of Planning and Development Allison Lamey, Economic Development Director, Department of Planning and Development Maria Dickinson, Economic Development Officer, Department of Planning and Development City of Lowell Assessor’s Office Market Sources Adam Baacke, Director of Campus Planning and Development, UMass Lowell President James C. Mabry, Middlesex Community College Fred Faust, President, The Edge Group, Inc. Mark Reardon, Executive Vice President, CBRE/New England Alex Plaisted, Senior Associate, CBRE/ New England Joanne Souza, Realtor, Heritage Properties Dennis Page, Realtor, RE/MAX Partners Tim Bulman, at District Real Estate Advisors Fran Sagendorf at Taupeir Real Estate Inc.,
1 Dictionary of Real Estate Appraisal, Fifth Edition, 2010, Appraisal Institute
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This study is prepared in accordance with the Uniform Standards of Professional
Appraisal Practice (USPAP) and the Appraisal Institute. Readers are encouraged to note the
General Assumptions and Limiting Conditions described herein.
Purpose and Function of Report
The purpose of this study is to evaluate the market support for potential reuses of the
Lowell High School site in the event that the high school is rebuilt outside of the Downtown. The
study has been prepared for use by the City of Lowell to assist in decision making for the
property.
Competency Statement
Rose M. Perrizo, MAI is competent to perform the appraisal assignment and is
experienced in the valuation of all types of commercial property. I am currently certified under
the continuing educational program of the Appraisal Institute and licensed by the
Commonwealth of Massachusetts as a Certified General Real Property Appraiser. Qualifications
are included in the Addenda.
PROPERTY DATA
This section of the appraisal report summarizes pertinent information concerning the
immediate neighborhood, property description, and applicable zoning regulations.
Property Description
The subject property comprises three non‐contiguous sites in Downtown Lowell. The
sites are developed with Lowell High School buildings that were built in phases over the previous
100 years. Lowell High School has over 3,000 students.
According to data from the City of Lowell Assessor’s Office, total site area is 285,043
square feet or 6.54 acres. The existing improvements total 794,378 square feet. The buildable
potential of the site, based on the 4.0 FAR allowed under current zoning is 1,140,172 square feet.
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The property is summarized in the following table.
Location/Access ‐ The property is located on the northern edge of the core Downtown
area, three blocks from the Merrimack River. Access to the regional highway system is via 1.2
miles of local streets (Arcand Drive, Thornton Street and Dutton Street) to the Lowell Connector
which leads to Route 3 and Interstate 495.
The Lowell MBTA station at the Gallagher Transportation Center provides commuter rail
service to Boston. It is located 1.2 miles from Lowell High School at 101 Thorndike Street.
Street Frontage – The property has frontage on Arcand Drive, Father Morrissette
Boulevard, French Street, John Street, Paige Street, and Kirk Street.
A branch of the Merrimack Canal and Lucy Larcom Park separates the 50 Farther
Morrissette Boulevard and 38 Kirk Street school buildings.
Improvements – I visited the exterior of the property on November 16, 2015. I did not
perform an interior inspection and do not have information on the condition of the buildings.
38 Kirk Street ‐ I was informed that this is the original building. It is an attractive three and
one‐half story masonry building reportedly built in the 1920’s and in fair condition. It occupies the
Address Land (SF) GBA (SF) Buildable GBA * Comments
38 Kirk Street 100,627 386,936 402,508 Attractive 3 1/2 story
masonry. Built 1920s. Fair
condition.
50 Fr. Morrissette Blvd. 143,248 281,099 572,992 Brick. Two buildings built
1970/80s. Poor condition.
68 John Street 16,737 78,605 66,948 Freshman Academy
55 French Street 17,759 46,410 71,036 Freshman Academy
35 French Street 6,672 3,328 26,688 Freshman Academy
285,043 796,378 1,140,172
* 4.0 FAR
47 Fr. Morrissette Blvd. 108,043 parking garage
63 Kirk Street 16,144 ?? US Dept of Interior
* Assuming 4.0 FAR development
Lowell High School
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entire block between Father Morrissette Boulevard and Kirk Street and might have re‐use
potential, but I have no information to evaluate the physical condition.
50 Father Morrissette Boulevard – I was informed that this brick, two‐building connected
structure was built in the 1970’s and is in poor condition. One component is a hexagonal
auditorium and one section is a three‐story school building.
Freshman Academy – 68 John Street and 35 and 55 French Street comprise the Freshman
Academy component. The three buildings are attractive two and three story brick structures. I was
not provided with information on the physical condition.
Environmental – I was not provided with information on the environmental condition of
the property. As such, it is a general assumption and limiting condition of this report that the
subject property does not have any deleterious environmental conditions that would inhibit
development.
Zoning ‐ The parcels are zoned DMU (Downtown Mixed Use.) This zoning designation
allows a wide variety of commercial, retail, hotel, business, laboratory and institutional uses as of
right. Multi‐family housing is allowed with a special permit. This zone allows for a 4.0 FAR
development potential.
Adjacent Property Uses
North – U. S. Post Office is at the northwest corner of Father Morrissette Boulevard and
Arcand Drive. The 1,250 space Ayotte municipal parking garage is at 47 Father Morrissette
Boulevard. The River Place Towers rental apartment complex is at 1 River Place. The former Lowell
Five Savings Bank property, which is currently for sale, is at French Street and Merrimack Plaza.
The Boott Mills Storage building is at 30 French Street. Boarding House Park is at French
and John Streets.
East – The Joe Downes municipal parking garage is at 15 John Street. A Lowell National
Historic Park office building is located at 67 Kirk Street.
South – Commercial buildings are located on Paige and Kirk Streets. Merrimack Street is
the core Downtown artery.
West – The City Police and Fire Departments are situated on Arcand Drive. The 200 unit
North Canal Apartments affordable housing complex is located at 110 Arcand Drive.
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Downtown Lowell Overview
The City of Lowell is the fourth largest city in the state. It is located in northeastern
Massachusetts and is bordered by Dracut on the north, Tyngsborough on the northwest,
Chelmsford on the southwest, and Tewksbury on the east. Lowell is located 25 miles north of
Boston, 45 miles north of Worcester and 100 miles south of Portland.
Lowell is centrally located at the intersection of two major limited‐access highways,
Interstate 495 and Route 3, with convenient access to all of New England’s amenities and
resources.
Lowell was at the heart of the Industrial Revolution and textile industry that boomed in
New England in the nineteenth century. Many of the former mill buildings are part of the Lowell
National Historic Park. The park includes historic cotton textile mills, 5.6 miles of canals,
operating gatehouses, and worker housing.
The subject property is located at the northern edge of the Downtown. General
neighborhood boundaries are the Merrimack River on the north; Concord River and Lowell
General Hospital on the east; Appleton Street on the south; and the Western Canal on the west.
A Map of the City of Lowell Downtown Area follows.
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Over the past thirty years, Downtown Lowell has undergone dramatic changes.
Revitalization efforts during the 1970s and 1980s have radically changed Downtown Lowell from
a center of industry to a true urban village. Major initiatives, such as the Lowell National Historic
Park, the Tsongas Arena, and the redevelopment of numerous mill buildings have transformed
the city.
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Downtown Lowell is home to University of Massachusetts at Lowell and Middlesex
Community College. The student population has enhanced retail businesses in the CBD and
surrounding neighborhoods. Many new restaurants, bars and cafes have opened up in
Downtown Lowell in recent years.
The 3,200‐seat Lowell Auditorium hosts many of the country's top performers at
affordable prices. The UML Tsongas Arena is located in Downtown Lowell, along with the
Merrimack Repertory Theatre, which is one of the few self‐sustaining repertory theater groups
in the Northeast. Lowell boasts over a dozen museums, including Boott Cotton Mills Museum,
New England Quilt Museum, American Textile Museum, Morgan Cultural Center, National
Streetcar Museum, Revolving Museum and Brush Art Gallery and Studios.
University of Massachusetts at Lowell (UML) ‐ UML has expanded rapidly in recent
years to 17,500 students, which is an increase of than 50% from the student population of 11,600
in 2007. According to Adam Baacke, Director of Campus Planning and Development, the future
five‐year plan calls for expanding to 20,000 students.
The UML campus has three major locations; North, South, and East. The North and
South campuses are primarily academic buildings with some residence halls and playing fields.
The North Campus is on the north side of the Merrimack River and is connected to the East
Campus and Downtown area by the Howe Bridge.
The East campus is at the western edge of Downtown Lowell and is the location of the
majority of residence halls, the primary dining facility, recreation center, LeLacheur Baseball
Park, and Tsongas Center. UML also occupies a significant amount of space in the Downtown
Wannalancit Mills and Boott Mills office complexes. The UML Tsongas Center, which is located
north of Lowell High School, is the eastern most point of campus, with one exception. UMass
Lowell purchased a Downtown hotel at 50 Warren Street and now operates is as the University
Inn & Conference Center.
The university is completing a spate of new construction projects, including Riverview
Suites on the South Campus, a new Business School on the North Campus, and the recently
opened 230,000 square foot University Crossing student center which connects all three
campuses.
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In February 2013 UML joined NCAA Division I Athletics. The move to Division I will require
the University to add basketball capability to the Tsongas Center, make improvements to the
North campus Costello facility, and add new playing fields with artificial turf. The University
would also like to add another ice rink for practice, although there are no concrete plans at the
moment.
The University of Massachusetts Lowell (UML) recently announced the purchase of the
4.85‐acre parcel of land located at 225 Aiken Street and identified as the “Notini site.” The $5.8
million price indicates a unit value of $27.48 per square foot. UML’s initial plans are to use the
site as recreation fields for the East Campus.
While UML does not currently have funding for the needed athletic facilities, it could
build them on the Notini site or on the 122,743 square foot site at 152 River Place that it owns if
public funding becomes available.
Middlesex Community College – MCC is a two‐year community college with a total
student population of 9,000 students on its two campuses in Downtown Lowell and Bedford.
There are 4,700 students at the Downtown Lowell campus which is centered at Kearney Square
and is located three blocks east of Lowell High School along Merrimack Street, between
Prescott and Howe Streets.
MCC’s main building is the former Wang Corporate Education Center at Kearney Square,
which opened in 1991. MCC acquired the Federal Building in 2004, along with the historic John
Nesmith House. The College owns the Talbot building on Middle Street, which houses its health
and medical programs, and the Derby building. It leases the Pollard building to operate
Middlesex Charter School. MCC currently occupies 151,500 square feet in Lowell. The College is
renovating the former B&M railroad depot for its $20 million performing arts center; it is
scheduled to open in Fall 2017.
President James C. Mabry told me that MCC projects a decline in student population of
approximately 2% annually over the next five years, as a result of two trends. 1) Community
college growth tends to be countercyclical to growth in the larger economy; MCC experienced a
growing student population during the Great Recession years of 2008 – 2010, followed by
declines since then as the economy has improved and employers began hiring again. 2) A decline
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in the number of Lowell High School students is forecast for the near future based on City
demographic projections. President Mabry said MCC’s near term plans in Downtown Lowell are
to revitalize its existing space. Like all public institutions, capital plans are subject to state
funding and there are no plans for future spending.
Hamilton Canal District ‐ This 14‐acre redevelopment district is located on the south
side of Lowell’s Downtown. The City anticipates that the District will be transformed as the
primary gateway into the City and double the size of Downtown. The Hamilton Canal District
will connect the transportation hub at the Gallagher Terminal and Lowell Connector with the
core Downtown, the Arts District, and the major event venues.
The District master planned development began in 2005 when Trinity Financial was
selected as the master developer. To date, significant infrastructure improvements have been
made and two projects are completed. The City of Lowell recently issued a RFP to select a new
master developer.
The City of Lowell is committed to creating a transit‐oriented, mixed‐use neighborhood
along the canals through an expedited permitting process. There are plans to secure local, state
and federal incentives to maximize business growth and commercial investment. Enormous
time and energy has been invested in this project in the hope that it will strengthen the
residential and commercial markets, expand the City’s employment base, and broaden the
population base of creative professionals in the City.
The following table summarizes the completed, planned, and permitted sites in the
District. There are currently nine development‐ready sites totaling 475,729 square feet of land
(almost 11 acres.)
Given the flexibility in height and density restrictions in the form based code, it is
appropriate to apply a 4.0 FAR allowance to derive a general estimate of the maximum build out
potential. Application of 4.0 FAR indicates a potential buildout of 1.5 million square feet.
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Address Planned Use Zone
Land
Area (SF)
Max GBA
* Comments
Completed
#6 & 7 ‐Appleton Mills 219 Jackson Street Renovated apt
building.
DMU 76,336 219,245 Renovated mill
bldg. 130 units
affordable,
live/work units.
#10 ‐ UML Innovation
Hub
110 Canal Street Renovated mill
building.
DMU 14,048 58,450 UML Innovation
Hub. Renovated
mill bldg (4.16 FAR)
Subtotal 90,384 277,695
Planned
Lowell Trial Court 351 Middlesex St. Institutional 127,291 255,555 14 acre site at
southern edge of
HC
#2/3A & 4 341 Jackson St. Residential DMU 58,258 140,000 Genesis Health
Care. Skilled
nursing.
#14/ Parking Garage parking DMU 65,581 262,324 City planning 980
space garage.
# 17/ 17A Commercial DMU 23,853 60,000 Watermark;
proposed 6 story
office
Subtotal 251,130 717,879
Permitted
#1 330 Jackson St. Commercial DMU 22,586 89,500 Proposed 6 story
bldg. (3.96 FAR)
#5 291 Jackson St. Commercial DMU 22,688 90,752 Commercial or
theatre.
#8 & 9 193‐239 Jackson St. Residential DMU 50,946 203,784 130 units
#11 193‐239 Jackson St. Residential DMU 24,944 99,776
# 15 & 16 ‐ Signature
site
Commercial DMU 79,582 318,328 232,000 sf
Subtotal 200,746 802,140
451,876 1,520,019
* Based on 4.0 FAR when actual density is not known.
Hamilton Canal District
TOTAL PLANNED/PERMITTED
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Market Area Analysis In order to estimate the future demand of a particular property the economic vitality of
both the immediate and general areas encompassing the property must be considered. Market
area analysis focuses on the social, economic, governmental, and environmental forces that
affect real estate, which are all ultimately understood in terms of their effects on the economic
climate in which property transactions occur.
This section examines the supply of and demand for real estate in the primary market.
Demographic Overview The primary market is the Downtown Lowell submarket. It is defined as the 0.5‐mile
radius around 100 Market Street. A map of the submarket follows.
Downtown Lowell Submarket Map
Key demographic data for the Downtown Lowell submarket, the City of Lowell, the
Boston metropolitan area, and the Commonwealth of Massachusetts are summarized in the
following table. The data was provided by the Site To Do Business, and compiled by RP Realty
Advisors.
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Population ‐ Downtown Lowell’s current population is 10,514 and is projected to grow
1.27% annually to 11,178 in 2020. It comprises only 10% of the City of Lowell’s population, which
is currently 107,625. The City’s population is forecast to grow 0.52% annually by 2020.
The Boston‐Cambridge‐Quincy MA‐NH CBSA population is estimated as 4,665,265 and
grew 0.50% annually from 2010. The State’s population of 6,689,353 in 2015 represents a 0.43%
annual population growth. Modest population growth is anticipated in these two jurisdictions.
Median Age – The median age in Downtown Lowell is 34.7. The median age in the City
of Lowell is 33.6.
Households – Downtown Lowell has 5,094 households. Annual average growth of 1.52%
is projected over the next five years. The average household size in Downtown Lowell is 1.94
persons, which is much smaller than the City of Lowell’s average household size of 2.64 persons.
The City of Lowell has 39,084households, which indicates a 0.32% annual average
increase since 2010.
Ann. Av.Chg. Ann. Av.Chg.
Population 2010 2015 2010‐ 2015 2020 2015 ‐ 2020
Downtown Lowell 9,885 10,514 1.27% 11,178 1.26%
City of Lowell 106,519 107,625 0.21% 110,427 0.52%
Bos‐Camb‐Quincy MA‐NH CBSA 4,552,402 4,665,265 0.50% 4,825,949 0.69%
State of Massachusetts 6,547,629 6,689,353 0.43% 6,880,602 0.57%
Ann. Av.Chg. Ann. Av.Chg.
Households 2010 2015 2010‐ 2015 2020 2015 ‐ 2020
Downtown Lowell 4,734 5,094 1.52% 5,646 2.17%
City of Lowell 38,470 39,084 0.32% 40,235 0.59%
Bos‐Camb‐Quincy MA‐NH CBSA 1,760,584 1,813,395 0.60% 1,881,436 0.75%
State of Massachusetts 2,547,075 2,613,774 0.52% 2,695,209 0.62%
Ann. Av.Chg. Ann. Av.Chg.
Average HH Size 2010 2015 2010‐ 2015 2020 2015 ‐ 2020
Downtown Lowell 1.95 1.94 ‐0.10% 1.93 0.00
City of Lowell 2.66 2.64 ‐0.15% 2.63 0.00
Bos‐Camb‐Quincy MA‐NH CBSA 2.50 2.48 ‐0.16% 2.48 0.00
State of Massachusetts 2.48 2.46 ‐0.16% 2.46 0.00
Ann. Av.Chg.
Median HH Income 2015 2020 2015 ‐ 2020
Downtown Lowell $21,578 $23,437 1.72%
City of Lowell $49,380 $54,444 2.05%
Bos‐Camb‐Quincy MA‐NH CBSA $75,060 $84,306 2.46%
State of Massachusetts $67,601 $78,488 3.22%
Source: Esri Business Analyst Online; compiled by RP Realty Advisors
Demographic Information
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Median Household Income –The median City household income of $49,380 is 34%
below the metro’s median income and 27% below the state’s median income.
Downtown Lowell’s median household income is only $21,578. However, this figure is
somewhat misleading. There are a number of low and very low income residents in public
housing in the Downtown, as well as many upper income residents in the high rise apartment
towers.
Economic Overview Major Employers – The following table details the top 20 employers in the City of Lowell.
The Health Care and Education sectors sector provide the lion’s share of employment.
Telecommunications follows, followed by Electronics.
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Unemployment Rate – According to the Massachusetts Department of Employment
and Training, the most recent employment statistics for October 2015 show that the City of
Lowell’s total labor force is 53,568, of which 50,440 were employed indicating an unemployment
rate of 5.8%.
The data in the following table shows that in comparison, unemployment rates in the
Lowell‐Billerica‐Chelmsford, MA‐NH Region and State of Massachusetts were 4.6% for the
same period. The US unemployment rate was 5.0%.
Available Downtown Lowell Development Sites
Details of available, development‐ready sites in Downtown Lowell are found in the
following table.
Jurisdiction %
City of Lowell 5.8%
Lowell‐Billerica‐Chelmsford, MA‐NH Region 4.6%
State of Massachusetts 4.6%
USA 5.0%
Unemployment Rates ‐ Oct. 2015
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Off Market ‐ The University of Massachusetts Lowell (UML) recently announced the
purchase of the 4.85‐acre parcel of land located at 225 Aiken Street and identified as the Notini
site. The $5.8 million price indicates a unit value of $27.48 per square foot. UML’s initial plans
are to use the site as recreation fields for the East Campus.
Available Land – Four significant land parcels are available and development ready in
the Downtown Core area. All are immediately adjacent to the Lowell High School. The parcels
total almost 7.0 acres and possess a buildout potential of over 1.2 million square feet.
Map of Available Downtown Development Sites
The City of Lowell owns two parking lots at 168 and 230 Martin Luther King Boulevard.
The City’s efforts to market these sites to private developers has meet with tepid interest.
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UML owns a developable site at 152 River Place, next to the Tsongas Arena. I was
informed that an RFP was issued to develop this site, but only a private dormitory developer
expressed interest.
Lowell Five Cent Savings Bank has been marketing its 2.2 acre former headquarters site
for several years. Recently Mark Reardon from CBRE took over marketing efforts and has
attached an asking price of $4 million or $41.60 per square foot. It is noted that this unit price is
50% higher than the price that the Notini site sold for and appears unrealistic. The only interest
has come from the same private dormitory developer that expressed interest in the City’s and
UML’s land.
There are nine permitted and pad‐ready development sites in the Hamilton Canal
District. The parcels total 475,729 square feet and offer development potential of over 1.6 million
square feet.
In total, there are 13 development sites in Downtown Lowell that are being actively
marketed. The sites total almost 18 acres of land and would afford development potential of
over 2.7 millions square feet. This is a vast supply of available land and would allow for many
years of future development, before consideration of the subject site.
Office Market Overview
Colliers International provides market indicators for the Greater Boston Office Market.
The most recently published data is from the Greater Office/R&D Market Snapshot: 2nd Quarter
2015 and is found below.
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Total office supply in the Greater Boston office market is 218 million square feet, of which
63.2 million square feet are found in Downtown Boston; 21.5 million square feet are in
Cambridge; and 133.73 million square feet are in the Suburban market.
Overall vacancy in Greater Boston is 14.2%. Vacancy in the Suburban market is 17.2%.
The average overall rental rate in the Boston metro market is $35.34 per square foot. The
average rental rate in the suburban market is $24.50 per foot.
Route 495 North Office Submarket ‐ Lowell is in the Route 495 North Office Submarket.
The average rental rate is $19.80 per foot. Class A space reports an average of $20.94 per foot.
Class B space reports an average of $19.70 per foot.
Lowell’s submarket is the weakest office submarket among the 20 submarkets in the
metro area, as shown by the vacancy rate of 23.5% and negative year to date absorption of
(313,361) square feet.
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Lowell Office Market – I found no published, third‐party surveys of the Lowell office
market. I relied on data from Costar Professional Data Service for information on the Lowell
Downtown Submarket. It is important to note that the data is self‐reported from owners and
brokers marketing their properties and has not been independently verified. Further the Costar
report includes data only for larger Class A and B properties. Data for many of the smaller, Class
C buildings found in Downtown Lowell is not included.
The Costar Professional Data Service reports that the Downtown Lowell submarket
contains 2.3 million square feet of office space.
The vacancy rate is reported as 10.7%, with a 12.4% availability rate, although these rates
appear low. It may be that owners and brokers have removed available space from the market
after lengthy marketing periods. Also, the DMU zoning allows for mixed‐use buildings in the
Downtown and upper floors may be used as either commercial or residential space.
Full service/ gross rental rates range from $7.00 to $23.44 per foot and average $12.91
per square foot.
The Downtown Lowell annual absorption rate is weak; it was reported as only 25,092
square feet in the previous year, with an 11,827 square foot average.
The data is presented below.
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Office Market Rental Rate Analysis – I spoke with office market experts, including Fred
Faust, President, The Edge Group, Inc., Mark Reardon, Executive Vice President, CBRE/New
England, Alex Plaisted, Senior Associate, CBRE/ New England, Joanne Souza, Realtor, Heritage
Properties, and Dennis Page, Realtor, RE/MAX Partners.
I have examined the Lowell office rental market several times over the last eight years.
The following table compares the results of same‐building market rental studies in 2007 and in
2015. The buildings include Wannalancit Mills, Boott Mills, Gateway Center, 100 Merrimack
Street, and Crosspoint.
Typical office tenants are small, local business with space requirements of 500 to 2,000
square feet. Typical rental rates for the best Downtown buildings range between $15.00 and
$14.00 per square foot, on a partial gross basis, or $13.00 to $15.00 per foot on a triple net basis.
The 2015 office rental rates are at essentially the same level as the rental rates found in
my 2007 investigation. These rent levels are not sufficient to support new construction for
investors.
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Downtown Lowell’s office market has an ample supply of good quality office space in
Wannalancit Mills, Boott Mills, Gateway Center, and 110 Canal Street. The existing space should
be able to satisfy office demand into the near future.
# Address SF/ Available Basis Ask Avg. NNN SF/ Available Basis Ask Avg. NNN Comments
1 Wannalancit Mills 25,245 Gross $12.00 $8.00 21,608 Partial $15.00 $13.00 Adj. to UML & Tsongas Arena.
175 Cabot & 660‐72 Suffolk/ 8.92% 7.64% Gross to $18.00 to $15.00 283,000 sf complex. 1866/1987
283,000 SF 3.0 parking ratio
2 Boott Mills Substantially $19.00 $15.00 49,994 Partial $15.00 $13.00 300,000 sf. former mill building in CBD.
120 and 200 John St./ vacant. 45.45% Gross to $20.00 to $15.00 Renovated in 1990/2002.
110,000 SF
3 Gateway Center I NAV NNN $13.50 $13.50 3,464 NNN $13.00 $13.00 2 Class A buildings. Built 1997‐ 1999.
10 George Street/ 10.50% $15.00 to $15.00 Op. Exp, CAM, RE taxes are $5‐$6/sf.
33,000 SF
Gateway Center II NAV NNN $13.50 $13.50 12,116 NNN $15.00 $13.00
10 George Street/ 36.72% to $15.00
30,000 SF
4 100 Merrimack Street/ NAV Gross $10.00 $7.00 8,475 Gross $10.00 $7.00 Renovated Class B.
33,900 SF 25.00% Offered for sale at $1.4M or $41/sf.
5 Crosspoint 1, 2, 3 150,000 Gross $19.00 $14.00 511,100 Gross $22.00 $14.00 1.2MSF complex with amenities
900 Chelmsford Street/ 12.00% $23.00 $18.00 42.59% Vacancy dropped to 150,000 sf (12%)
1,200,000 SF as a result of recent large leases in 2007.
Excellent highway access & parking.
6 UML Innovation Hub 55,000 $13.00 Completed in 2012. UML leases the top
110 Canal Street 50.00% to $15.00 two floor for research lab space.
110,000 SF In spite of tax credits and public incentives,
there is still high vacancy.
Market Office Rental Rates ‐ Lowell, MA ‐ Comparison of 2007 and 2015
2007 Rental Rates 2015 Rental Rates
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Lowell Retail Market Overview
The Keypoint Eastern Massachusetts/Greater Boston, 2015 Report surveys conditions in
the Eastern Massachusetts retail market. The 2015 newsletter observed that inventory
increased to 193.2 million square feet, while at the same time vacant retail space also increased
to 8.8%, up from 8.5% in 2014.
A general trend in Eastern Massachusetts was increases in vacancy rates among smaller”
stores, largely attributable to “mom and pop” stores that could not recover from the Great
Recession. Key findings are presented in the following table.
Lowell is located in the Northwest retail submarket, which has a total supply of 17.8
million square feet. The vacancy rate is reported as 7.1%, up 80 basis point from the previous
year’s vacancy rate of 6.4%.
While Lowell does not have a regional, enclosed mall, there are ample mall shopping
opportunities available in adjacent towns.
Retail space in Lowell is concentrated in strip shopping centers anchored by
supermarkets or discount stores. Most of the retail space is located two miles outside of the
Downtown, on state roadways.
I relied on data from Costar Professional Data Service for information on the Lowell
Downtown Submarket. It is important to note that the data is self‐reported from owners and
M a r k e t A n a l y s i s – L o w e l l H i g h S c h o o l
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brokers marketing their properties and has not been independently verified. Further the Costar
report includes data only from larger properties and not smaller, Class C space may be excluded.
The Costar Professional Data Service reports that the Downtown Lowell submarket
contains slightly more than 1.0 million square feet of retail space.
The vacancy rate is reported as 4.2%, although this rate appears low. Costar only includes
data that is being marketed. It may be that owners and brokers have removed available space
from the market after lengthy marketing periods.
The current average asking rental rate, on a triple net basis, is $10.08 per foot, which is
consistent with the five year average rental rate of $9.60 per foot.
The annual absorption rate is weak; it was reported as negative (11,406) in the previous
year, with a 28,518 square foot average.
The data is presented below.
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Retail Market Rental Rate Analysis – Lowell’s Downtown core has numerous vacant
retail spaces. While the many new residential developments in Lowell have brought a changing
demographic and the addition of several upscale shops and restaurants, the supply of
Downtown retail space currently exceeds the demand created by new residents.
I spoke with two retail experts including Tim Bulman, at District Real Estate Advisors,
Fran Sagendorf at Taupeir Real Estate Inc., Fred Faust, President, The Edge Group, Inc., Joanne
Souza, Realtor, Heritage Properties, and Dennis Page, Realtor, RE/MAX Partners. The following
table summarizes the results of my detailed study at six properties.
Typical retail tenants in Lowell are service‐related or restaurants and range in size from
1,000 to 2,000 square feet. Retail rents range from $8.00 to $15.80 per foot, on a triple net basis.
The rental rates are not sufficient to support new construction. New retail development will not
be economically feasible until significant new demand generators are in place.
# Tenant/Address Size/SF Basis Ask Avg. NNN Comments
1 Discount Furniture Store 15,500 NNN $10.00 $8.00 Shopping plaza on edge of Downtown.
Central Plaza Shopping Ctr.
93,900 SF 4.0/ 1,000 sf parking ratio
2 Available 30,000 $20.00 $15.00 A 30,000 sf pad site is available for new
336 Church Street construction. Site currently occupied with
5,000 sf office building.
3 Cricket Cell Phones 1,000 Mod $13.20 $9.20 3 year lease. Two 5‐yr options with 10%
118‐122 Merrimack Street Gross steps.
Op. Exp, CAM, RE taxes estimated at $4/sf.
4 Retail user 1,100 Gross $21.80 $15.80 Renovated Class B.
104 Merrimack Street Op. Exp, CAM, RE taxes estimated at $6/sf.
5 Retail user 1,800 Mod $14.67 $10.67 Located in heart of downtown.
95‐103 Market Street Gross Large storefront. Plus basement use.
6 Retail user 900 Mod $14.50 $10.50
96 Merrimack Street Gross
Market Retail Rental Rates ‐ Lowell, MA ‐ 2015
2015 Rental Rates
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According to the Urban Land Institute, a general rule of thumb for retail development is
that 1,000 new housing units are required to support an additional 100,000 square feet of retail
space. As new market‐rate housing is introduced Downtown and resident’s disposable income
increases, the demand for new retail space should grow. Thus a greater critical mass of housing
will be required before new retail development becomes viable in Downtown Lowell.
Retail Leakage and Surplus Analysis – This analysis examines the quantitative aspect
of a community’s retail opportunities. It is a guide to understanding retail opportunities but does
not designate unconditional opportunities. It is also called a Gap Analysis or a Supply and
Demand Analysis and can aid in identifying how well the retail needs of local residents are being
met; uncovering unmet demand and possible opportunities; understanding the strengths and
weaknesses of the local retail sector; and measuring the difference between actual and potential
retail sales.
The following Retail Marketplace Profile of Downtown Lowell, using Esri data for the 0.5
mile radius around 100 Market Street, identifies “retail leakage” and “retail surplus.”
Retail leakage (shown as positive figures in green) suggests that there is unmet demand,
although it does not necessarily translate into direct opportunities. For example, there could be
strong competition in a neighboring area that dominates the market for that type of product or
store.
Downtown Lowell appears to have retail leakage in motor vehicle, general merchandise,
furniture, and building supply categories. However, purchases in these categories tend to be
“high value.” The small number of households in the trade area, only 5,094, there is not large
enough to sustain stores in these categories.
Retail surplus (shown as negative figures in red) means that the trade area is attracting
non‐local shoppers. This may mean that certain types of retailers have become destination
stores for outsiders. Downtown Lowell appears to have retail surplus in the retail trade and food
and drink categories.
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Lowell Residential Market Overview Housing data for Lowell is summarized in the following table. The data was provided by
the Site To Do Business, the Massachusetts Executive Office of Housing and Economic
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Development’s Subsidized Housing Inventory, and The Warren Group’s Real Estate Records
Search and compiled by RP Realty Advisors.
There are an estimated 42,397 housing units in the City of Lowell. The vacancy rate is
7.8%. Renters occupy slightly more than half of all units.
As of December 2014, Subsidized Housing Inventory (SHI) 12.4% of the city’s housing units
were considered affordable. Lowell is one of the few communities in the state to meet the
Commonwealth’s Chapter 40B mandate to make 10% of all units affordable.
The median single family home sale price for the first ten months of the year was
$240,094. The median condominium price was $165,000.
2015 Housing Units Number %
Total Units 42,397
Vacant Units 3,313 7.8%
Renter Occupied Units 21,339 50.3%
Subsidized Housing Inventory 5,250 12.4%
Median SF Price (Jan‐Oct 2015) $240,094
Median Condo Price (Jan‐Oct 2015) $165,000
Housing Data
City of Lowell
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Housing prices in Lowell have not recovered from the peak in 2005. Median single family
home prices are currently 13% below the 2005 price of $274,900. Median condo prices are 15%
below the $194,200 median 2005 price.
In comparison, the current median Middlesex County single family home price of
$460,000 is above the 2005 price of $435,000; the current median condo price of $365,000 is
above the 2005 price of $300,000.
New Development ‐ The empty mill buildings in Lowell’s Downtown provide an
opportunity for adaptive reuse to commercial and residential use. The City of Lowell offers many
unique financial incentives to encourage new growth and development. Many former mill
properties have been converted to residential use.
The City of Lowell’s Office of Economic Development compiles an annual list of the
Downtown Lowell new residential projects. I reviewed this list in 2007 which showed that 783
new and renovated units had been completed in 18 buildings since 2000.
I reviewed the 2015 list which shows that 1,631 new units in 30 buildings have been
completed since 2000. This indicates an addition of 848 units have been added to the Downtown
market in the last eight years, or an average of 106 units per year.
I have analyzed the list and present it on the following page.
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There are currently 165 units under development in four Downtown buildings. There are
an additional 788 units planned and permitted at five other developments.
Given the experience of the previous eight years, these 953 new units could take almost
10 more years to be built and absorbed by the market.
Downtown Lowell Condominium Prices– I surveyed sale prices at new and recently
modernized loft buildings in Downtown Lowell in 2006 and 2007 and compared prices at three
of the same properties which had recent transactions. The results of the survey are found on the
following page.
Average sale price in 2006 and 2007 ranged from $142 to $211 per square foot of unit
area. My research found that prices actually declined in the last eight years; average prices are
now $135 to $152 per foot in the same buildings.
Ayer Lofts, 172 Middle Street – The current average unit price of $148.79 per foot
indicates a 30% decline from the 2006 – 2007 sale price average of $211.27 per foot.
Cottonhouse Lofts, 240 Jackson Street – The 2015 average unit price of $152.08 is
slightly higher than the 2007‐unit price of $142.90 per foot, indicating annual appreciation of
0.8%.
Canal Place, 200 Market Street – The current average unit price is $135.42 per foot,
which is 14.5% lower than the $158.47 average price.
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Downtown Lowell Apartment Rental Rates – In spite of the downturn in the sales
oriented market, I did not find a corresponding decline in the rental market.
I re‐surveyed four rental properties in Lowell and the results are found in the following
table.
The Loft 27 property (formerly Joan Fabrics Building) is located at 27 Jackson Street and
was renovated into 173 residential units in 2005. College Street Development originally intended
to market it as a condominium project, with units priced at $275,000. Winn Development
purchased the property and is operating it as a rental property. The upscale property features
granite kitchen counters, tile bath and kitchen floors and a large recreation center.
Average one bedroom rents were $1,450 per month in 2007 and are now $1,630,
indicating a 12% overall appreciation rate. Two bedroom rents increased from $1,800 to $2,400
in the same period, or 33%.
303 Dutton Street average one bedroom rents were $1,085 per month in 2007 and are
now $1,310. Two bedroom rates were $1,450 in 2007 and are now $1,700 per month.
Boott Mills and MassMills also experienced positive rental rate appreciation in the same
period.
Apartment Name\Type SF Rent $/SF SF Rent $/SF
#1‐Loft 27, 27 Jackson St. 2007 1330 $1,450 $1.09 1600 $1,800 $1.13
2015 1330 $1,637 $1.23 1972 $2,400 $1.22
#2 ‐ 305 Dutton Street\ Existing 2007 910 $1,085 $1.19 1124 $1,450 $1.29
2015 910 $1,310 $1.44 1200 $1,700 $1.42
#3 ‐ Boott Mills\ Existing 2007 940 $1,175 $1.25 1145 $1,450 $1.27
2015 927 $1,765 $1.90 1195 $2,075 $1.74
#4 ‐ MassMills I & II 2007 750 $900 $1.20 1125 $1,150 $1.02
2015 750 $1,330 $1.77 1125 $1,520 $1.35
Compiled by RP Realty Advisors
Apartment Market Rental Survey ‐ Lowell, MA: 2007 and 2015
Two BR/ Two BAOne BR/ One BA
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HIGHEST AND BEST USE
Highest and best use is defined as:
“The reasonably probable and legal use of vacant land or an improved property, which is
physically possible, appropriately supported, financially feasible, and that results in the
highest value. The four criteria the highest and best use must meet are legal
permissibility, physical possibility, financial feasibility, and maximum profitability.”2
This definition refers to the highest and best use of both vacant as well as improved
property. Implied in the definition is that the determination of highest and best use takes into
account the contribution of a specified use to the community and community development
goals, as well as the benefits of that use to individual property owners. An additional implication
is that the determination of highest and best use results from the appraiser’s judgment and
analytical skill, that is the use determined from analysis represents an opinion, not a fact to be
found.
The definitions of highest and best use indicate that there are two types of highest and
best use. The first type is highest and best use of land or site as though vacant. The second is
highest and best use of property as improved. Each type requires a separate analysis. In the case
of the subject property, analysis, as vacant, is necessary.
Highest and Best Use As Vacant – The question to be answered in this analysis is what
use should be made of the land? That is, what type of building or other improvement (if any)
should be constructed on the land?
Physically Possible – In the case of the subject, lot shape and dimensions do not pose
unusual constraints to development. Much of the site is relatively level and at grade and would
support many types of development. The physical characteristics of the property will allow most
types of commercial, retail or industrial uses.
2 The Dictionary of Real Estate Appraisal, 3rd Edition, published by the Appraisal Institute (1993), p.171.
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Legally Permissible – The site is located in the DMU (Downtown Mixed Use.) This
zoning designation allows a wide variety of commercial, retail, hotel, business, laboratory and
institutional uses as of right. Multi‐family housing is allowed with a special permit.
Financially Feasible – In addition to being physically possible and legally permissible, a
use must make financial sense and have sufficient market support.
Downtown Lowell Supply: There are currently 13 development‐ready sites available in
Downtown Lowell. All have been actively marketed in recent years with limited interest from
private developers.
Four sites are adjacent to Lowell High School and would afford over 1.2 million square
feet of development potential.
Nine sites are in the Hamilton Canal District and offer over 1.6 million square feet of
potential development area.
In total, development on the almost 18 acres of pad‐ready land would increase the supply
of the Downtown market by more than 2.8 million square feet.
Downtown Demand:
Institutional Use: The University of Massachusetts Lowell and Middlesex Community
College are among the top five employers in the City of Lowell and major users of Downtown
office space. UML expects to add 3,000 more students in the next five years, although most of
the growth will occur on the existing campus footprint.
UML joined NCAA Division I Athletics in 2013 and this move will require the University to
add basketball capability to the Tsongas Center, make improvements to the North campus
Costello facility, and add new playing fields with artificial turf. The University would also like to
add another ice rink for practice, although there are no concrete plans at the moment.
The University of Massachusetts Lowell (UML) recently announced the purchase of the
4.85‐acre parcel of land located at 225 Aiken Street and identified as the “Notini site.” UML’s
initial plans are to use the site as recreation fields for the East Campus.
While UML does not currently have funding for the needed athletic facilities, it could
build them on the Notini site or on the 122,743 square foot site at 152 River Place that it owns if
public funding becomes available.
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MCC projects an annual 2.0% decline in its student population over the next five years
and will not need more space in Downtown Lowell in the near future.
Office Use: The vacancy rate in the subject’s Route 495 North submarket is the highest
among all 20 submarkets in the Greater Boston office market, at 23.5%. Year to date absorption
was reported as negative (313,361) square feet at the end of the second quarter of 2015.
My same‐building Downtown Lowell rental rate analysis between 2007 and 2015 found
that rates are essentially the same and below the level needed to support new construction.
There is very little demand for new office space in Lowell or the surrounding market. Thus, office
use, while legally allowed, would not be financially feasible.
Retail Use: Commercial and retail uses are also allowed “as of right.” Lowell’s Downtown
core has numerous vacant retail spaces. While the many new residential developments in Lowell
have brought a changing demographic and the addition of several upscale shops and
restaurants, the supply of Downtown retail space currently exceeds the demand created by new
residents.
As new market‐rate housing is introduced Downtown and resident’s disposable income
increases, the demand for new retail space should grow. At this time Downtown Lowell has not
achieved the critical mass of residential housing required to support new retail development.
Residential Use: Lowell’s housing prices have not recovered from the peak in 2005.
Median single family home prices are currently 13% below the 2005 price of $274,900. Median
condo prices are 15% below the $194,200 median 2005 price.
In spite of the downturn in the sales oriented market, I did not find a corresponding
decline in the rental market. My same‐building rental survey of three converted apartment
buildings found that rental rates have increased 2% to 5% on average between 2007 and 2015.
Maximally Productive – Simply stated, highest and best use is that use which fully
develops the land's potential.
Institutional demand appears speculative at this time. There is only lackluster demand
demonstrated for office use in Downtown Lowell. Demand for support retail, restaurant and
commercial uses will follow once residential buyers and tenants move to Downtown Lowell.
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There is positive demand for residential rental properties but 953 units are under
construction or planned in Downtown Lowell, which indicates ample supply.
Conclusion – At this time, there is a surplus of development‐ready sites in Downtown and
no market support for redevelopment of the subject site in the near future. Highest and best use
is continued use of the site.
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ADDENDA
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GENERAL ASSUMPTIONS & LIMITING CONDITIONS I assume: 1. That the subject property's fee simple estate is marketable and that the property is free and clear of all liens,
encumbrances, easements and restrictions unless otherwise noted. 2. No liability for matters legal in nature. 3. That property ownership and management are in competent, responsible hands. 4. The property is not operating in violation of any applicable government regulations, codes, ordinances, or statutes.
Any zoning variations and special permits currently in place are assumed to be available as of the date of value. 5. That there are no concealed or dubious conditions of the subsoil or subsurface waters, including water table and flood
plain or environmental hazards. Further, that there are no regulations of any government entity to control or restrict the use of the property, unless specifically referred to in this report.
6. Building and unit area estimates are based on information supplied by the others including the building information
provided by the current owner to the appraiser preparing this report. The following limiting conditions are submitted with this report: 1. All of the facts, conclusions, and observations contained herein are consistent with information available as of the date
of this report. The value of real estate is affected by many related and unrelated economic conditions, both local and national. I, therefore, assume no liability for the effect on the subject property of any unforeseen change in the economy.
2. The market analysis, which applies only to the property described herein, was prepared for the purpose so stated and
should not be used for any other purpose. 3. I have not made a survey of the property. Any and all maps, sketches, and site plans provided to me are presumed to
be correct, but no guarantee is made as to their accuracy. 4. Any information furnished by others is presumed to be reliable and, where so specified in the report, has been verified,
but no responsibility, whether legal or otherwise, is assumed for its accuracy or can it be guaranteed as being certain. No single item of information was completely relied upon to the exclusion of any other information.
5. The signatory herein shall not be required to give testimony or attend court or appear at any governmental hearing
with reference to the subject property, unless prior arrangements have been made. 6. Disclosure of the contents of this report is governed by the bylaws and regulations of the Appraisal Institute. Neither
this report nor any portions thereof (especially any conclusions as to value, the identity of the analyst or the firm with which she is connected, or any reference to the Appraisal Institute or the MAI or RM designation) shall be disseminated to the public through public relations media, news media, advertising media, sales media or any other public means of communications without my prior written consent and approval.
7. I have no present or contemplated interest in the subject property. 8. Employment and compensation for the report are in no way contingent on the conclusions reported herein. 9. This report has been made in conformance to the Code of Professional Ethics and Standards of Practice of the
Appraisal Institute, of which Rose M. Perrizo is a member, and represents the best judgment of the analyst. 10. No responsibility is taken for the effect on the subject property of changes in market conditions after the date of the
report. 11. No effort has been made to determine the impact on this project of possible energy shortages or present or future
federal, state, or local legislation, including any environmental or ecological matters or interpretations thereof. 13. Other than the zoning analysis herein, the appraiser did not ascertain further legal and regulatory requirements,
including permits and licenses and other state and local government regulations.
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CERTIFICATION
I certify that, to the best of my knowledge and belief:
• I have the requisite knowledge and experience to competently undertake this assignment.
• The statements of fact contained in this report are true and correct.
• The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions.
• I have no present or prospective interest in the property that is the subject of this report and I have no personal interest or bias with respect to the parties involved.
• I have not performed any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three year period immediately preceding acceptance of this assignment.
• My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event.
• My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, promulgated by the Appraisal Foundation.
• I visited the exterior of Lowell High School subject property on November 16, 2015.
• No one else provided significant professional assistance to the signatories of this report.
• I certify to the best of my knowledge and belief, the reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute.
• I certify that the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
• I certify that I am appropriately certified to appraise the subject property in the state in which it is located. Rose M. Perrizo, MAI is registered with the Commonwealth of Massachusetts as Certified General Real Estate Appraisers, Certification No. 1937.
• Rose M. Perrizo, MAI is competent to perform this assignment and are experienced in the valuation of all types of commercial property, including but not limited to, office buildings, industrial buildings, research and development facilities, retail developments, lodging facilities, mixed use projects, multi‐family residential property, and undeveloped land. Ms. Perrizo is currently certified under the continuing education program of the Appraisal Institute.
Rose M. Perrizo, MAI
Rose M. Perrizo
Rose M. Perrizo, MAI Mass. Certified General Appraiser #1937 Certified through October 15, 2017
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QUALIFICATIONS OF ROSE M. PERRIZO, MAI
Rose Perrizo has extensive experience in commercial real estate consulting, valuation and market analysis across the United States. Ms. Perrizo has expertise with all property types, including land, ranging from urban renewal sites to master planned developments; office, retail, and industrial buildings, ranging in size from 50,000 to two million square feet; and every type of residential use including apartment towers, condominiums and mixed‐use facilities. Ms. Perrizo has served as an expert witness and provided litigation support for cases in U.S. District Court, U.S. Bankruptcy Court, and the Massachusetts Superior Court. She has a special expertise with federal and state housing programs and transportation agencies and has earned the highest real estate appraisal designation, Member of the Appraisal Institute.
PROFESSIONAL EXPERIENCE RP REALTY ADVISORS, Boston, MA (1992 to Present) Principal and Owner
Prepare appraisal and market studies for MassHousing, U.S. Postal Service, major law firms, and numerous other institutions.
Develop market transactional analyses, highest and best use studies, market rent reports and feasibility reports for public transportation agencies including Massachusetts Bay Transit Authority, New York Thruway, and Chicago Transit Authority.
Estimated the highest and best use and market value of a 31‐acre freight yard in Brockton, MA for the owner, CSX Corporation, in connection with disposition decisions.
Prepared valuation of the one million square foot Technology Square Campus in Cambridge, MA to assist Prudential Insurance Company with an underwriting investigation.
Engaged as a testifying expert in a professional malpractice case in U.S. District Court, Boston to estimate the value of ocean front land and homes in Cotuit, MA. Successful resolution at mediation.
LANDAUER ASSOCIATES, New York, NY (1987 ‐ 1992) Senior Vice President
Supervised teams of consultants on large‐scale engagements across the United States. Examples include current asset valuation of a $2.5 billion real estate portfolio; advisory study of 16 land developments in Maryland; and the feasibility analysis of 220 Dallas land parcels.
RELATED EXPERIENCE (1981‐1987) New York City Dept. of Housing Development – Responsible for planning projects in Manhattan Joseph J. Blake & Associates and The Weitzman Group – Real estate consulting studies across the U.S.
EDUCATION & PROFESSIONAL AFFILIATIONS
M.P.A. Public Administration and Urban Planning, cum laude, SYRACUSE UNIVERSITY, 1980
B.S. Political Science, magna cum laude, UNIVERSITY OF WISCONSIN, Stevens Point, 1979
Member of the Appraisal Institute, #7765
Certified General Real Estate Appraiser, MA, #1937
Guest Lecturer at New York University Real Estate Institute
Former Member of the Town of Sharon Conservation Commission
DBE Certification
Open Water Diver, IDEA #1004781