Adam Kenney
Vice president of operations, Peabody Properties
Age: 44
Industry experience: 21 years
Peabody Properties is among a group of Boston-area multifamily landlords and property managers that have endorsed Mayor Marty Walsh’s housing stability pledge, which seeks to minimize evictions since the Oct. 17 expiration of the state moratorium by creating payment plans and connecting tenants with rental assistance. Adam Kenney joined the Braintree-based property management and full-service real estate company in 2004 and currently serves as its vice president of operations, overseeing management, leasing and sales of approximately 6,000 units at more than 60 properties.
Q: Peabody Properties supported engagement in this year’s election, sending fliers and newsletters to residents to encourage voter registration and turnout. Was that a first?
A: This is a new one. Obviously, our role is to bring resources to our residents. We’re about 75-percent third-party managed, so it’s post-owner approval, but we did engage those residents. We’re trying to bring resources, especially during this difficult time, to their doorsteps, whether it’s rental assistance programs or locations where to vote and register.
Q: There’s been industry research indicating that asking rents for urban Boston and Cambridge apartments are off around 11 percent this year, while suburban properties are seeing slight gains. Is that the case at Peabody’s portfolio?
A: We’re about 55 percent suburban and 45 percent urban. We just had a call this morning and what we’re really seeing is a difficult time in the city of Boston for market rents versus the suburbs. We have one property used primarily to house Tufts graduate students. Because they’re not at school this year, it’s put us in a precarious situation. Whether it’s North End or East Boston or downtown Boston, you’re seeing a rise in vacancy. But with our suburban locations, we’re seeing those even have wait lists and higher occupancy. You have so much product right now in the city. How we’re dealing with it is higher concessions of rents and further outreach to corporate housing providers, shorter lease terms and being more flexible.
Q: Higher concessions also include free rent?
A: You’re seeing anywhere from two to three months. You’re trying to create situations where you’re maintaining the rents within the building for renewals as well. You’re going to have residents saying, “Hey wait a minute, this new rental is $1,100 and I’m an existing renter paying $2,100.” We’re offering these concessions in the short term and seeing if we can get to the point where there’s an upturn in the market. We initially looked at it being Jan. 1 and now we’re looking at it being later in 2021.
Q: How has rent collection held up during the pandemic?
A: We’ve been extremely proactive with our resident services team. Obviously, we know the CARES Act has had an effect in terms of how we collect rent. Our resident service coordinators, in concert with property managers, are bringing resources to their doorstep. They help residents fill out applications for rental assistance programs. For our portfolio, we’re still maintaining high-80s and low-90s [rent collection rates].
Q: How do you set your goals for lease-up timing in a new development?
A: It depends on the demographic. We have a lease-up going on right now in Ashland and it’s a 62-and-over property, The Ledges. Even with the struggles of COVID, something that would take 18 months is probably taking longer, because people are very wary of moving. The population we are targeting, it’s harder to source but [we] have been fairly successful.
Q: On Peabody’s condominium portfolio, have you seen a similar downturn in urban properties?
A: There’s maybe a slight downturn in the city of course, but it’s still a seller’s market. In suburban locations, you’re still seeing a seller’s market where they’re having numerous bids above asking prices. We have a property at the Hingham Shipyard and they’re having numerous bids above asking prices coming in.
Q: How are the day-to-day operations and management different during the pandemic?
A: It is a difficult time that I haven’t seen in my lifetime. Our employees have been in their offices and on-site since this all started. In our 62-and-older properties we had daily check-ins with that clientele. Their families couldn’t get to those residents and would put them at-risk. We reach out via phone and Zoom to those residents. We are creating flu clinics at the properties and creating locations for computer labs for kids who don’t have access to computers, getting Chromebooks in their hands. And we’ve given early leave on Fridays to employees to use for COVID support of their families.
Kenney’s Top Five Outdoor Dining Locations:
- Aria Trattoria, North End
- Anejo Mexican Bistro, Falmouth
- Tosca Café, Hingham
- Golden Sails, Falmouth
- Cisco Brewery, Nantucket
