Asking Price Contact for pricing
NOI Net Operating Income N/A
Cap Rate N/A
Asking Price Contact for pricing
NOI Net Operating Income N/A
Cap Rate N/A

Documents

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Create an account on the Investor Center to save your search and investment preferences, save and share opportunities, access exclusive documents, and more. More questions? Visit our FAQ. You'll need to sign a Confidentiality Agreement (CA) to access exclusive documents in the Deal Room. Signing the CA means you agree not to divulge or release sensitive information related to this property. More questions? Visit our FAQ.

Attributes

Year Built 1992
Tenure Type Leasehold
Building Area
Land Area
Number of units 147

Property Description

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Jones Lang LaSalle Americas, Inc. (JLL) is pleased to offer, on an exclusive basis, the opportunity to acquire the leasehold interest in the Constitution Inn, a blank slate redevelopment opportunity situated in Boston’s Charlestown neighborhood. Owned by the YMCA of Greater Boston, the Constitution Inn has 147 guestrooms and a 25,000 square feet fitness center; however, the property’s zoning allows for a wide range of uses including lodging, multifamily, senior housing, student housing and medical office subject to the necessary approvals. 


Less than two miles from downtown Boston, the Constitution Inn benefits from a highly favorable location. Situated in Boston’s historic Charlestown neighborhood, the property is surrounded by prominent medical institutions including Spaulding Rehabilitation Hospital, Harvard Medical School’s Department of Physical Medicine and Rehabilitation, MGH Institute of Health Professions, Martinos Center, and Mass General Hospital – one of the leading healthcare institutions in the country. Additionally, the market features key Boston tourist attractions including the Charlestown Navy Yard featuring the USS Constitution, TD Garden (home to the Boston Bruins and Celtics, Boston Freedom Trail, and Bunker Hill Monument amongst others. 


The Constitution Inn presents investors with an extremely rare blank slate redevelopment opportunity. The site’s location in the Boston market, and in a qualified opportunity zone, offers easy access to robust commercial locations and allows for a wide range of development options.

Investment Highlights

A BLANK SLATE REDEVELOPMENT OPPORTUNITY

The Constitution Inn presents investors with an extremely rare blank slate redevelopment opportunity in a leading urban U.S. market. The Property’s zoning allows for a range of uses that would complement its location. Potential uses for the Property include lodging, multifamily, senior housing, student housing, and medical office subject to approvals by the Boston Planning & Development Agency and the Zoning Board of Appeal. A new owner will have the option to determine the appropriate product type, operating strategy, and future positioning of the Asset.


PROPERTY CHARACTERISTICS

The Constitution Inn sits on a 0.33-acre parcel of land leased to current ownership under a long term ground lease agreement with the Boston Planning & Development Agency. Built in 1992, the six-story, 111,388 SF Property maintains 147 guestrooms with a 25,000 SF YMCA fitness center including a full-size gymnasium, fitness studios, a basketball court, and a four-lane swimming pool. In light of the organization’s charitable and investment goals and its lack of willingness to continue operations during an economic slowdown, ownership has decided to close the Property on October 31, 2020. Upon a sale, the Y is open to leasing its existing fitness center space from a new owner or relocating its branch to a new location in Charlestown. 


ATTRACTIVE BASIS RELATIVE TO REPLACEMENT COSTS

The Constitution Inn offers investors an attractive alternative to new construction with product flexibility subject to the necessary approvals. The Property is being offered at a significant discount to replacement costs for various product types in the market. The lack of developable land, a difficult and lengthy permitting process, and high construction costs make Boston an extremely challenging development landscape. 


QUALIFIED OPPORTUNITY ZONE

The Constitution Inn is located in a qualified Opportunity Zone designated by the US Department of Treasury, offering tax benefits to investors. A new owner would have the opportunity to roll capital gain tax liabilities into an investment in the Property on a tax-deferred basis.


BOSTON: EXCELLENT MARKET FUNDAMENTALS

Boston’s status as a leading gateway market makes it an excellent location for real estate investments. Powered by Fortune 500 Companies, leading healthcare centers, a highly-educated workforce, and an unmatched ecosystem of innovation, Boston is one of the leading economies in the U.S. The city is home to several top tier universities including Harvard University and Massachusetts Institute of Technology attracting a wealth of intellectual capital and attracting some of the most innovative companies in the world. The market attracts more than 19 million visitors annually, contributing to its historical ranking as one of the top 5 performing lodging markets in the nation.


FAVORABLE LONG TERM GROUND LEASE WITH THE BPDA

The Constitution Inn is subject to a long term ground lease with the Boston Planning & Development Agency (BPDA) with an initial 65-year term that expires in 2056 with extension options through 2120. The Y has informed the BPDA of its plans to sell the Constitution Inn and the BPDA has expressed a willingness to negotiate a new long-term ground lease with a potential buyer. 

Last Updated Date: 13 Oct 2020
Alan Suzuki
Alan Suzuki
Managing Director, Capital Markets
Denny Meikleham
Denny Meikleham
Managing Director, Capital Markets
License details
RI-REB.0017202 MA-9519748

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Last Updated Date: 13 Oct 2020

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