The development of new lofts and the recent conversion of apartment buildings into condominiums helped fuel a surge in condo sales in the city of Chelsea last year.
More than 300 condos were sold in Chelsea through November of last year, a 113 percent increase from the 142 units that were sold in 2003, according to The Warren Group, parent company of Banker & Tradesman.
Local Realtors attribute the sales jump to a slew of new condominium developments that have emerged in the last two years, particularly Spencer Lofts – a project that involved the conversion of an old textile factory into 100 loft condominiums that have been selling for anywhere from $210,000 up to the low-$300,000s.
Many units within that development were sold last year, including a 908-square-foot loft that sold for $285,000 last month. Such new loft space is helping to draw young professionals who find it difficult to afford a home in trendy Boston neighborhoods like the South End, Charlestown and South Boston.
“I think the loft market has stimulated Chelsea a lot,” said Dana Schaefer, a real estate agent with Paragon Properties in Boston.
When Schaefer receives phone calls from homebuyers who are seeking a loft or condo in the South End with 1,000 to 1,200 square feet of living space and parking for under $350,000, she often suggests Chelsea as an alternative.
“People are not really familiar with where it is,” said Schaefer, who emphasizes Chelsea’s convenient location and access to Routes 1, 16 and 20 and the Massachusetts Turnpike to homebuyers.
“Chelsea is what the South End was,” years ago, she said.
‘Bang for Your Buck’
Loft living and affordable prices are not the only features attracting homebuyers to the area. A short drive from Boston and Logan International Airport, Chelsea is an ideal location for busy professionals who have to work downtown or must travel frequently, according to local Realtors.
Bill Black, a Chelsea resident who opened Cobblestone Real Estate in the city three years ago, said residents get a steep discount for the Tobin Bridge tolls. And Chelsea homeowners who don’t want to drive into Boston and other points can take advantage of several bus lines and a private water taxi.
Another benefit that Chelsea offers is a residential tax exemption, according to Black.
“You can get a lot of bang for your buck,” in Chelsea, said Black.
Chelsea also features an eclectic mix of residents, separate neighborhoods that each have their own unique flavor and breathtaking views of the Boston skyline, according to Realtors.
Even before the newer residential development in the city, the waterfront and neighborhoods like Admiral’s Hill had been attracting homebuyers for years, according to Adrienne O’Keefe, a real estate broker who grew up in Chelsea. Two four-level townhouses with water views at Admiral’s Hill fetched $480,000 and $459,900 in September.
“Chelsea is a great location,” said O’Keefe, who is co-owner of City Square Realty in Chelsea. “It’s a great little town. It’s more of a town than a city.”
Realtors note that home prices have been steadily rising. The median price for condos sold from January through November of last year was $229,900 – a 15 percent increase from the same period in 2003. The median selling price for single-family homes in the same period increased 13 percent to $305,000 from $269,100.
Developers and investors seem to be taking notice. In the last few years, developers have discovered old unused sites that have become new residential properties.
The Prattville School on Washington Street, for example, was converted into 22 lofts more than three years ago. Schaefer, who sold three lofts in that development last year, said unit values at the Prattville School Lofts have soared. A 1,070-square-foot condo with deeded parking that Schaefer sold at the complex in September went for $337,500. The same condo sold for $190,500 in 2000 – a 77 percent difference.
Besides lofts, dozens of newly created condos have come on line. This year, a 16-unit condo complex at 960 Broadway was completed.
Within the last two years, two apartment complexes were converted into condos. An apartment building at 55 Eleanor St., which sold for more than $1.47 million in April 2002, was renovated into 21 condos. In addition, an apartment building at 70 Warren Ave. that sold for more than $3.7 million in July 2002 was transformed into Warren Heights, a 36-unit complex of one- and two-bedroom condo units. Units at Warren Heights that sold in 2004 went for between $174,900 and $198,000
More condos are in the works. Keen Development of Cambridge is planning to transform the Mary C. Burke School into 23 new artist lofts that will sell for up to $300,000. The project is expected to be ready next year.
A new project on Washington Street with 13 units known as Tudor Lofts is planned, and new units are being constructed at the Mill Creek Condominiums, a condo complex that was started in the 1980s but stalled during the market downturn.
One of the largest developments in the works involves the Forbes Industrial Park, an old, underutilized factory site. Davis Design/Development Corp. of Somerville wants to the redevelop the 17.7-acre site – which currently consists of up to 19 buildings with about 330,000 square feet – into a mix of mostly residential units and some commercial space. The developer is planning about 225 condos and roughly 20,000 square feet of commercial space, with construction expected to start next month.
Owners of two- and three-family homes also have seen an opportunity to profit from the booming real estate sales market. Several multifamily properties have been converted into condos in recent years.
Despite the progress in the city, it’s difficult to erase Chelsea’s troubled history from some people’s minds. The city was once plagued by a high crime rate, and government corruption plunged it into state receivership more than a decade ago.
But those painful memories are fading for newcomers and longtime residents. According to the latest statistics available through the Massachusetts State Police, the number of violent crimes committed in Chelsea dropped 15 percent from 680 in 2002 to 576 in 2003. Still, the city’s crime rate was higher than Everett, a nearby city comparable in size, where only 137 violent crimes were committed in 2003.
The city’s image may be shifting and the recent momentum in the residential real estate may be a reflection of that.
“Chelsea is not the old Chelsea anymore and it’s actually headed in a great direction,” Black said.
