In 2005, Boston Property Development shifted it's focus and began building and acquiring residential rental properties throughout greater Boston. Since 2005, BPD has acquired, renovated, and rented over 150 residential units. Approximately 70% of the units are rented to subsidized tenants.
In March 2009, BPD purchased two of three condominium units at 80 Draper Street in Dorchester. The property required minimal work as the units had already been renovated to condominium quality. BPD took advantage of the downturn in the real estate markets in this neighborhood to acquire high quality rental units at less than half of their true market value. The units are both rented and earn a nice, stable monthly cash flow.
In April 2008, BPD purchased a neglected and run down 18 unit D apartment complex in a C neighborhood in Mattapan. The property required a complete overhaul and a major repositioning in a neighborhood where it had deservedly acquired a very poor reputation. New exterior siding, windows, and a comprehensive landscaping overhaul followed by extensive interior renovations including decentralization of the heating systems, new kitchens, baths, flooring, lighting, painting and a significant upgrade to the common areas helped turn the perception of the property around. By December 2008 the complex was 100% leased up at above market rents and the neighborhood and city officials were very happy with the much improved quality of the property.
In October 2008, BPD purchased a neglected 6-unit C building in a B neighborhood in Quincy, MA. In order to optimize net operating income, the buildings exterior was painted, the yard was landscaped and all of the exterior decks were replaced. On the interior, electric panels were installed in each unit, heating service was decentralized and each unit was given its own gas meter and boiler, kitchens and bathrooms were upgraded, lighting fixtures, switches and outlets were updated, floors were sanded and refinished and all of the walls were painted. The property is now 100% occupied and recently appraised at more than double its purchase price, generating a 120% return on investment in less than one year.
In January 2006, BPD purchased a 15,000 square foot parcel of land on River Street in the lower mills neighborhood of Dorchester, MA. Working effectively with the building department, BPD received permitting for two 2-family homes to be built on the parcel. In July of 2006, the two, 2-family modular homes were constructed on the property and by October 2006 each of the 3 bedroom, 2 bath units were occupied.