Lynn, Lynn, the city of … multi-million dollar waterfront redevelopment with hundreds of thousands of square feet of shiny new residential, office and retail projects?
If that’s not the jingle you remember learning as a kid, don’t fret. You’re not losing your memory of local culture, or color. The city fathers of that infamous municipality just north of Boston are trying to make Lynn’s image – with its history of urban grittiness and debauchery – a thing of the past. And if city leaders have their way, Lynn’s transformation will be pushed in large part by commercial real estate development.
A 305-acre swath of Lynn’s waterfront has been designated a “growth” district by Gov. Deval Patrick to encourage development of parcels of unused or underutilized land along Route 1A/The Lynnway from approximately the city’s Waterfront Park to the General Edwards Bridge.
Economic development officers envision a grand scheme with scores of residential towers alongside office and retail buildings, all overlooking the Lynn coastline. Those apartments or condos would be filled with residents working in Lynn, Boston or beyond who want water views for cheaper prices than in the Hub. The office space, ideally, would house firms with similar money-saving mindsets, and the same for the retailers.
No one is saying it will be easy for Lynn to accomplish those goals. It’s a second- or third-tier city, and outside the borders that investors usually operate in – namely Boston, Cambridge and well-known suburbs like Waltham and Burlington. And when a bank can choose between lending millions of dollars for a project in a secondary or tertiary city versus a less risky multifamily project in, say, Brighton, the bank will usually choose the multifamily project, according to one industry expert.
But now, a set of massive industrial power lines that once towered directly above the coastline has been moved. Those power lines represented the elephant in the waterfront development living room – so much so that people were actually afraid to be anywhere near them, said James Marsh, development director for Lynn.
“It would be like if Rowes Wharf, one of Boston’s greatest waterfront assets, had power lines running right above it,” Marsh quipped in a recent interview. “They were this huge barrier to development.”
‘Eclectic Downtown Population’
The waterfront has been zoned for building heights up to 20 stories along the coast and getting lower as construction approaches the city center. But the large growth district has only about 50 acres of land currently vacant and ready for development. The remainder is dotted with industrial properties, a Wal-Mart and other uses inappropriate for the waterfront, Marsh said.
While the city has been focusing its efforts on the waterfront, there are other development opportunities in the heart of Lynn. In total, General Electric owns about 22 acres worth of nearly vacant lots near the corner of Western Avenue and Federal Street. There is a 65,000-square-foot, vacant industrial building on one of the sites, Marsh said. CB Richard Ellis is marketing the property for redevelopment.
“Lynn has a very eclectic downtown population,” said Don Hause, managing partner for Keystone Strategies who has looked closely at potential development opportunities in Lynn. “The right developer for the sites has to understand that demographic, can secure the equity, and has a plan that will evolve over time working closely with the city. It can’t be overnight, but they also can’t wait 20 years to develop it either. The person needs a broad vision for the entire city, [not just narrowly focusing on one part].”
One developer has already made his mark on the city and was one of the first to turn the old downtown factories into apartments: John McGrail, head of Boston’s Mayo Group, which has developed hundreds of new condos and apartments in Lynn, with plans to start construction soon on another 49 units. He just secured a $1.3 million construction loan from Northern Bank for 129-167 Broad St., which currently has 27 finished units and 12 retail spaces, with capacity for another 22 residential units.
And according to Marsh, the economic development director, more than 300 new residents have moved into Lynn in recent years, thanks partly to McGrail’s efforts.
“Lynn is the next big thing,” McGrail mused in a recent interview. “A lot of redevelopment will be coming down the pipeline for them.”
Email: jcronin@thewarrengroup.com
