Real estate renewal in the South End

Shown are the DGC’s 5th Annual Real Estate Summit speakers (from left): Todd Fremont-Smith, senior vice president & director of mixed-use projects, Nordblom; Ron Druker, president, The Druker Co.; William Gause, executive vice president & director of acquisitions, Leggat McCall Properties; Ted Tye, founder & managing partner, National Development; Laura Gregoriadis, principal, DGC and Jon Farrell, partner, DGC.

Boston, MA The future of the South End continues to look bright, according to a panel of leading real estate developers who spoke at DiCicco, Gulman & Company’s (DGC) 5^th annual Real Estate Summit. The panelists were proud to say they are actively developing property in the South End, whereas not that long ago the area was rough, property values were low and most would not have considered it as an opportunity for real estate investment and redevelopment. The vision of a few real estate developers, who first entered the market, is leading the way to a complete transformation that has many developers flocking to the neighborhood. While the transformation is still on-going, one can walk down the street today and shop at Whole Foods, eat at a restaurant owned and operated by a renowned chef, and enjoy the culture from the once industrial neighborhood.

On September 21, over 150 people gathered to hear insights about topics such as the history of the neighborhood, why the South End is experiencing this renewal, what attracted each of the panelists to the area, and what challenges were encountered along the way. Jonathan Farrell, a partner and leader of DGC’s real estate practice welcomed the audience and introduced the panel of developers. Laura Gregoriadis, a principal in DGC’s real estate practice, moderated the panel which included Ron Druker, president of The Druker Co.; William Gause, EVP and director of acquisitions of Leggat McCall Properties; Todd Fremont-Smith, SVP and director of mixed-use projects at Nordblom Co.; and Ted Tye, founder and managing partner of National Development.

The South End’s renewal has accelerated at a relatively rapid pace. The transformation from where it was 10 years ago to what it is today is remarkable, but it has not been without its challenges. The panelists spoke about rising costs, fierce competition in the market and making the margins work, while balancing the desires of the current residents and the city. Transportation in the neighborhood is also a challenge, but the likes of Uber and Lift have alleviated the need for public transportation, although all major MBTA lines are also a short walk or bike ride away. The panelists also spoke to the history including the negative connotation with certain street names, causing developers to change the address of certain projects to try to break away old images that were associated with those streets.

Many people doubted the viability of the area, but this recent renewal is only the beginning. The panelists have opportunities to expand their projects and there are many other projects in the pipeline.

When asked about the future of the neighborhood and the next big opportunity for development, the panelists were optimistic about the fundamentals and were not overly concerned about the market or any particular asset class being overbuilt. There is a significant need for residential development in the city and there is confidence that the office tenants will come. In terms of the next big thing, it is yet to be determined.

DGC is a CPA and business consulting firm with a large real estate practice. DGC specializes in services to the real estate industry in both compliance and consulting services, including tax planning and structuring. The firm also serves Architectural & Engineering firms in the commercial practice, and high net worth individuals. Their depth of experience and industry expertise enable us to suggest new approaches and offer proactive, innovative solutions. DGC’s team of over 125 collaborates with clients to understand their objectives, and position them for the future.