O’Connell Hawley LLC (CBAC Presentation 4.6.2021 Submission Copy)CBAC Presentation
O’Connell Hawley LLC
10 Hawley Street, Northampton, MA
4/6/2021
Presentation Summary
•Site Orientation and Existing Conditions
•Central Business District Demolition Criteria
•Structural Obsolescence
•Extensive Deferred Maintenance
•Prohibitive Cost of Restoring the Building’s Base and Shell to Weather Tight Condition
•Functional Obsolescence
•Marketing History of the Site
•Current Market Conditions
•Adaptive Reuses and Market Outreach
•Cost Implications of Renovation v. New Construction
•Historic Tax Credits
•Low Income Housing Tax Credits
•Proposed Design of New Replacement Buildings
Site Orientation and Existing Conditions
Site Orientation and Existing Conditions Cont’d
Existing
Summary GSF Area
Basement 1,480
1st Floor 6,366
1st Floor Mezzanine 950
2nd Floor Tower 210
3rd Floor Tower 210
Bell Tower Floor 210
Total GSF 8,476 (NIC Mez.)
Basement Floor Plan -Existing
Scale: 3/16" = 1'-0"
Site Orientation and Existing Conditions Cont’d
1st Floor Plan -Existing
Scale: 3/16" = 1'-0"
Site Orientation and Existing Conditions Cont’d
Building Section -
Existing
Scale: 3/16" = 1'-0"
Building Section -
Existing
Scale: 3/16" = 1'-0"
3rd Floor Plan -
Existing
Scale: 3/16" = 1'-0"
2nd Floor Plan -
Existing
Scale: 3/16" = 1'-0"
38'-11"
Central Business District Demolition Criteria
III. Applicability
•Demolition of Historic Buildings
Demolition of historic buildings (those built prior to 1945)should be considered only
after all reasonable (emphasis added)alternatives--especially rehabilitation--have
been fully considered.For historic landmark or theme buildings,demolition should be
considered only when the building is unusable or is functionally and structurally
obsolete (emphasis added),and when an appropriate new building has been designed
to replace it (emphasis added).Demolition of historic transitional residential or
historic anomaly buildings should be considered only when the building is unusable or
is functionally and structurally obsolete,and when an appropriate new building has
been designed to replace it;however,an approved new theme building may replace a
transitional residential building regardless of its condition.
Design Guidelines Manual -Downtown Northampton Central Business District
Chapter 161.Demolition
§161-3:Buildings and structures regulated by this chapter.
Buildings or structures located within Local Historic Districts are subject to the provisions of Massachusetts General
Laws Chapter 40C.Applications for demolition in such districts will be reviewed as part of the Historic District
permitting process.Applications for demolition within the Central Business Architecture District will be reviewed by
the Central Business Architecture Committee (created by Chapter 156 of the Code)(emphasis added).If any of the
above-mentioned should cease to exist,the Northampton Historical Commission would administer this chapter in
those areas.The Historical Commission will review demolition applications in all other areas of the City.
Asbestos-Containing Thermal System Insulation Piping is throughout boiler
room and into the crawlspace. Piping diameter ranges from 2 to 5 inches.
Last Maintenance Record in
December 2015.
The boiler is insulated around the exterior with an asbestos jacket.
Asbestos-Containing Thermal System Insulation Piping is throughout boiler
room and into the crawlspace. Piping diameter ranges from 2 to 5 inches.
Deteriorated Window Caulk
and Window Framework
Fully Exposed Mortar Joints.
Fully Exposed Mortar Joints
and Miscellaneous, Significant
Cracking.
Rotted Trim, with Water
Infiltration.
Exposed Roof, with Extensive
Missing Shingles adjacent to
Bell Tower.
Fully Exposed Mortar Joints
and Miscellaneous, Significant
Cracking.
Efflorescence and Staining on the Bell Tower Brick, with
Evidence of Water Infiltration to the Interior.
Central Business District Demolition Criteria
Structural Obsolescence
1.Cost to Restore the Building to Weather Tight and Minimally Safe Condition
a.Cost Implications:
b.Rent Implications –Breakeven Analysis:
6,400
Shingle Slate
$378,600 $378,600
Roofing:
Architectural Shingle (without downspouts and gutters)$94,645
Slate Roof (including downspouts and gutters)$482,500
Scaffolding $104,000 $104,000
$87,500 $87,500
Total ($$)$664,745 $1,052,600
Comparison (Shingle v. Slate Roof)
Masonry - Repointing and Restoration Cleaning
Cost (Trade Description)
Replacement Windows
Rentable Building Square Footage (Approximate):
$350 $350
$2,240,000 $2,240,000
$664,745 $1,052,600
$2,904,745 $3,292,600
$290,475 $329,260
$45.39 $51.45
$250 $250
$1,600,000 $1,600,000
$664,745 $1,052,600
$2,264,745 $2,652,600
$18,872.88 $22,105.00
$2,096.99 $2,456.11
$3,812.70 $4,465.66
Add'l Annual Rent Required (Fixed $$/Yr)
Monthly Rent Required (Fixed $/RSF/Mo)
Required Starting Rent (45% OPEX Ratio)
Add'l Cost for Weather Tight Building
Commercial/Restaurant:
Fitout for Restaurant ($/GSF)
Fitout for Restaurant ($$)
Breakeven (10 Year Hold):
Multi-Family (9 Unit Rental)
Multi-Family Construction Costs ($/RSF)
Fitout for Multi-Family ($$)
10 Year Lease Annual Rent (Fixed $$/Yr)
10 Year Lease Annual Rent (Fixed $/RSF/Yr)
Add'l Cost for Weather Tight Building
Central Business District Demolition Criteria
Functional Obsolescence
1.Marketing History of the Site
a.The Building’s prior use ended on January 3, 2010, and has sat vacant and unused since that
time, despite being actively and continuously marketed until O’Connell Hawley’s purchase in
March 2020.
b.Approximately eleven years later, the Building has extensive signs of deferred maintenance, after
laying dormant and unheated for a large part of that period.
1.Current Retail and Commercial Market Conditions
a.Downtown Northampton is in a very challenging transition due to the pandemic and Amazon
effect.
b.Twice as many commercial vacancies as we have ever seen.
c.Obvious locations, such as Serio’s, have become challenging to fill with new tenants.
d.Multiple restaurants have closed.
e.Commercial realtors showed the church multiple times over the last 10 years. Prospects opted
not to offer on it because the costs to bring it to contemporary standards –i.e. due to structural
obsolescence –in order to create restaurant or commercial space, were prohibitive.
Central Business District Demolition Criteria
Functional Obsolescence
3.Adaptive Reuses and Market Outreach
a.Retail/Commercial -With the outbreak of COVID-19 and the government issued orders and strict measures that
followed, the end uses that were previously contemplated became financially unviable.
i.Boston-based restaurant/hospitality group proposed a multi-use venue, with outdoor music and outdoor
dining, but the lingering uncertainty over the long term effect on consumer spending habits caused them to
withdraw.
ii.O’Connell Development Group engaged Austin Design to design a brewery/restaurant concept space, but no
interest among breweries.
iii.Few Retail/Commercial end users are expanding their physical presence or have plans to do so. In fact, many
have begun to reevaluate their current space needs and business models, and have sought to reduce their real
estate footprint.
Outdoor Dining Patio
Central Business District Demolition Criteria
Structural Obsolescence
1.Cost to Restore the Building to Weather Tight and Minimally Safe Condition
a.Cost Implications:
b.Rent Implications –Breakeven Analysis:
6,400
Shingle Slate
$378,600 $378,600
Roofing:
Architectural Shingle (without downspouts and gutters)$94,645
Slate Roof (including downspouts and gutters)$482,500
Scaffolding $104,000 $104,000
$87,500 $87,500
Total ($$)$664,745 $1,052,600
Comparison (Shingle v. Slate Roof)
Masonry - Repointing and Restoration Cleaning
Cost (Trade Description)
Replacement Windows
Rentable Building Square Footage (Approximate):
$350 $350
$2,240,000 $2,240,000
$664,745 $1,052,600
$2,904,745 $3,292,600
$290,475 $329,260
$45.39 $51.45
$250 $250
$1,600,000 $1,600,000
$664,745 $1,052,600
$2,264,745 $2,652,600
$18,872.88 $22,105.00
$2,096.99 $2,456.11
$3,812.70 $4,465.66
Add'l Annual Rent Required (Fixed $$/Yr)
Monthly Rent Required (Fixed $/RSF/Mo)
Required Starting Rent (45% OPEX Ratio)
Add'l Cost for Weather Tight Building
Commercial/Restaurant:
Fitout for Restaurant ($/GSF)
Fitout for Restaurant ($$)
Breakeven (10 Year Hold):
Multi-Family (9 Unit Rental)
Multi-Family Construction Costs ($/RSF)
Fitout for Multi-Family ($$)
10 Year Lease Annual Rent (Fixed $$/Yr)
10 Year Lease Annual Rent (Fixed $/RSF/Yr)
Add'l Cost for Weather Tight Building
Central Business District Demolition Criteria
Functional Obsolescence Cont’d
3.Adaptive Reuses and Market Outreach
b. For Sale/For Rent Multi-Family Conversion
i.Cost Implications of Renovation v. New Construction
ii.Historic Tax Credits
iii.Low Income Housing Tax Credits
i.Funding Success Typically Requires Minimum Density of 30-40 Units
•Current test fit will only allow for a maximum of 9 units
•Assuming 5,120 RSF per floor, with 5 units per floor, any proposed building would be (at minimum) 6
stories tall.
ii.Highly Competitive
iii.Schedule: 2 years from Pre-Application to Full Application to the Awarding of Tax Credits
iv.Parent Company’s Portfolio includes 1,228 units of income-restricted properties (all in Massachusetts).
•112 units are owned in Northampton.
iv.Housing Development Incentive Program (HDIP)
i.Project is Ineligible –Northampton is not a “Gateway City”, which requires:
•Population greater than 35,000 and less than 250,000;
•Median household income below the state average; and
•Rate of educational attainment of a bachelor’s degree or above that is below the state average.
Central Business District Demolition Criteria
Functional Obsolescence Cont’d
Total SF
Division #Description of work Renovate Church into 5
For-Sale Units
1 General Requirements 280,000.00$
2 Existing Conditions 118,500.00$
3 Concrete 57,683.33$
4 Masonry 438,600.00$
5 Metals 13,251.00$
6 Wood & Plastic 444,325.31$
7 Thermal & Moisture 593,505.00$
8 Doors & Windows 119,573.80$
9 Finishes 343,411.50$
10 Specialties 24,333.00$
11 Equipment 37,401.56$
12 Furnishings 83,819.53$
13 Special Construction -$
14 Conveying System -$
21 Fire Suppression 36,250.00$
22 Plumbing 167,500.00$
23 HVAC 218,875.00$
25 Integrated Automation -$
26 Electrical 171,781.06$
27 Communication -$
28 Electronic Safety & Security -$
31 Earthwork 75,000.00$
32 Exterior Site Improvements 22,000.00$
33 Site Utilities 4,505.50$
SubTotal 3,250,315.60$
General Requirements Additional Cost
Gen liability and umbrella insurance $3.75 / 1,000 12,188.68$
P&P Bond $0.00 / 1,000
Contingency/OH&P 455,044.18$
TOTAL CONSTRUCTION COST 3,717,548.47$
Soft Cost
Soft Costs (Architectural and Engineering)5.50%180,000.00$
Builder's Risk Insurance (Premium Per Year)20,000.00$
Land Cost (Allocation)230,000.00$
Real Estate Commissions 6.00% (of Sales Price)264,737.14$
Cost per Unit (Breakeven)882,457.12$
10% Contingency/4%OH&P
Affordable Housing Projects under O’Connell Development Group
Ownership in Northampton
36 Bedford Terrace, Northampton, MA
20 units -1, 2 and 3 bedrooms
74 State Street, Northampton, MA
6 units –2 bedrooms
71 State Street, Northampton, MA
86 units –Efficiency, 1 and 2 bedrooms
Age and Income Restricted
Proposed Design of New Replacement Buildings
Options During and After Demolition
1.Pre-demolition salvage of materials/components with Architectural Value.
2.Offer those materials/components on a first-come/first serve basis.
Appendix
Market Rate Comparable Apartments
Boiler House (https://www.roundhillnoho.com/apartments) (as of 3/30/2021)
Completion Date: January 2021
Unit 1 --1 Bd./1 Ba.
725 SQ/FT -----$2,000 / Month
Unit 3 --1 Bd./1 Ba.
735 SQ/FT -----$2,000 / Month
Downtown Retail Market
Downtown Retail Market
Downtown Retail Market