Tremont Breaks Ground on Boston-Area Development
The company also received a $44.5 million construction loan for the upcoming community.
Tremont Asset Management has broken ground on 259 Lenox St., a 145-unit project in Norwood, Mass. Partners on the Boston-area development include SV+Partners and Callahan Construction Managers.
The company recently obtained a $44.5 million construction loan for the multifamily development from Beacon Bank. Colliers arranged the deal.
The transit-oriented community will rise on a former industrial site. The five-story building received approvals under the MBTA Communities Act, a 2021 law intended to increase housing supply near public transit.
The property is taking shape close to Norwood Memorial Airport and MBTA Norwood Central Commuter Rail Station. The city center will be within 1 mile, while downtown Boston will be about 22 miles northeast.
The unit mix will comprise one- and two-bedroom floorplans. A total of 20 percent of the units will be designated as affordable.
The community will have multiple amenities, including a golf simulator, dedicated coworking spaces and gaming areas, a fitness center and grilling areas, along with a courtyard and a swimming pool with a sun deck. The project is being built according to PHIUS Passive House standards, with modern building systems and efficient structural design.
The Norwood/Route 1 South submarket has continued to post solid multifamily performance, supported by steady rent growth and consistently high occupancy, according to Colliers. Over the past five years, rents have increased 4.8 percent annually, while occupancy has stayed above 95 percent on average.
Boston multifamily pipeline remains solid
At the end of the first quarter, Boston had 10,218 units under construction, a Colliers report shows. This was slightly below the previous quarter’s figure, when there were 10,487 apartments underway. However, it represented an almost 20 percent increase year-over-year.
Activity has remained steady beyond the first quarter, with several multifamily developments commencing construction in recent months. A few weeks ago, a public-private partnership between The Boston Housing Authority, Leggat McCall Properties and Joseph J. Corcoran Co. started work on Building F, a 266-unit project that is part of a master plan. The venture obtained a $172 million financing package for the development in April.
