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Why Savvy Investors Should Choose Lowell MA Real Estate

Being a real estate investor is not always glamorous. There are many ups and downs to be concerned with. Plus, not all areas are profitable. You need to study and examine where you will invest so that you not only waste money but time and effort as well. If you are thinking about investing in Lowell real estate properties, you may be on the right track.

The Lowell Spinners, an affiliate of the Boston Red Sox, has a logo with a baseball bat working as a spindle. It is a way of paying tribute to the industrial past of this river city. There was a time when the mills in Lowell had more cotton spindles than all the 11 Confederate states.

It was not always great in this place. Lowell suffered from economic decline, which was so rapid that it caught many people off-guard. However, the Massachusetts Miracle in the 80s allowed it to impressively rebound, and until today, you can see that Lowell is continuing its revitalized ways.

A Creative Economy

Lowell is a wonderful example of an invigorated urban area. It has galleries, museums, a music festival that people look forward to in the summer, a flourishing restaurant scene, a sculpture park to commemorate Jack Kerouac, and many others that would get the attention of smart investors in real estate.

There is significant growth in many parts of the city, and it is undeniable. For one, the University of Massachusetts Lowell has plans of expanding the Tsongas arena in the downtown area. The university is indeed experiencing expansions physically and academically. In fact, there has been a 45% surge in enrollment since 2007. The university also has opened about eight buildings, and with a record-breaking number of graduates.

Within three years, the university has climbed to the 25th spot in the Best National Universities ranking of the US News and World Report. With such climb, it made the university the second fastest growing educational institution in the nation. Aside from all these improvements, it also broke ground for a home in May, which is used for the Manning School of Business and it was worth $40 million.

More Reasons to Consider Lowell for Your Next Real Estate Investment

The growth of the University of Massachusetts Lowell alone can make your head spin. However, there are other things that would interest you for real estate investing in the city. Here they are:

Another reason why investors should invest in Lowell real estate is because of its easy access to certain areas in the city. There is often no need for a car because of its walkability rate. You can find neighborhoods that will easily bring you to the downtown area, The Acre, or the Back Central. What's more, there is also public transit that is easily accessible for those on the run.

Lowell is just a short commute to Boston, which is only 30 miles away. Lowell is a great prospect for anyone looking for a cost of living that is lower than the capital. Therefore, you will not find it difficult to get a buyer willing to pay for your real estate property investment.

Different Kinds of Properties to Choose from in Lowell MA

Lowell is a city located in Middlesex County in the state of Massachusetts. It stands as the fourth largest city in MA after Springfield, Worcester, and Boston. The US Census Bureau puts Lowell as the second largest city in the metropolitan area of Boston.

Named after Francis Cabot Lowell, the city served as the foundation of the American Industrial Revolution. There were large series of factories and textile mills in Lowell during that time. Today, these manufacturing sites are now preserved, thanks to the efforts of the National Park Service, which was created for the Lowell National Historical Park.

Whether you are planning to buy a home to live in, a place to rent, or property you can invest in, Lowell has several options for you. Once a mill town, the city has many buildings from the past which have now been revamped and used as residential properties.

In addition to these housing options, there are many things you can find for working and playing in the city. The urban agriculture, the outdoor concerts, eclectic restaurants, and restored mill buildings are just some of the things you can expect from this vibrant city.

Lowell is home to Middlesex Community College and the University of Massachusetts Lowell, along with other educational institutions that are well respected.

With immediate opportunities for education, entertainment, and employment, Lowell is indeed a good place to call home. If you are thinking about moving here or investing in real estate, here are the types of properties you can expect to find:

Vacant Land or Lots

There are a few unimproved pieces of land in the city of Lowell. Many ranch and farm specialists have thrived in this kind of real estate. Agents look for empty land because of the corresponding commissions associated with the size of the property and the total price. However, as Lowell is rapidly growing, it is not always easy to find such unimproved area.

Nevertheless, it helps to specialize in this kind of property as it can be very lucrative, especially for agents. Land is not affordable anymore but compared to Boston, it is cheaper in Lowell. There are at least ten lots or land for sale in the city. The average listing price is $142,350 while the highest is $295,000.

There are many neighborhoods where available land is offered in the city. You can find at Middlesex Street, Gorham Street, and Billerica Street. Prices depend on the seller, the size, and other factors. An example is a piece of land up for sale in 51-57 Shirley Avenue. It is a 0.28 acre of land and costs the buyer $59,900.

Single Family

There are at least 150 single family homes in Lowell. The number would fluctuate at different times of the year. The average listing price for this type of property is $333,722, and the highest listed price is $1,499,900.

Single-family homes are a great investment. The home prices in the city are steadily increasing. As mentioned, the average home value is around $333k. Because such property appreciates in value, you can get a high percentage of profit over time.

These properties are all around the city, including in Rear Lakeview Avenue, Rogers Street, and Suffolk Street.

Multi-Family

There are multifamily properties in Lowell, such as apartments in their various forms: midrise, garden, and high-rise. There are at least 75 multifamily homes in the city that were up for sale in the month of October. During that time, the average listing price was $375,689. The highest price listed for a multifamily property in Lowell is $2 million.

Pawtucket Boulevard has a number of multifamily homes for sale, as well Melrose Avenue, and Central Street. There are also apartments for rent in the city, including at Princeton Park, Westford Park, and the Imperial Gardens. Other great locations for renting apartments in Lowell are River Place Towers, the Colony Park, and the Grandview Apartment Homes.

One of the popular communities in the city for renters and homebuyers is the Princeton Park Apartment. It is family friendly, and the place is close to restaurants, malls, and highways. The apartment units have plenty of space for bigger families, and there are updated appliances as well.

There are also condominiums in the city with at least 110 listed in October 2017. On average, the condo units are priced at $230,056 while $659,000 was the highest list price for the same month. Mammoth Road is a great place to look for condos as well as Baldwin Street.

Other Real Estate Properties in the City

Lowell also has office buildings for lease, both urban and suburban types. Urban buildings, such as high rise and skyscrapers are scattered in many areas of the city. However, there are more suburban buildings, which are smaller and have been clustered in office parks.

An example is a property for sale near the University of Massachusetts Lowell, right at the Riverview East and West Residential Hall. It is priced at $3.4 million for 0.54 acres of land and comes with various amenities like storage units, car wash, and one more building under construction.

There are also retail properties in the city where shopping centers and restaurants frequent. Many industrial buildings are in Lowell as well. It is easy to locate buildings that can handle various industrial operations for tenants.

There are many hotels in the city ranging from limited to full service to boutique hotels. You can also find extended stay apartments or hotels, and you can normally book for them online.

The city of Lowell has a lower median selling price of properties compared to the state of Massachusetts, which has an average of $365,000 in 2016 based on the Middlesex North County Registration of Deeds. As for the selling prices of condos, Massachusetts has higher prices as well with the median selling price at $339,900 in 2016 as well.

With several options and affordable housing, Lowell is one of the best cities in Massachusetts for those hunting for a new property for living or renting.

City of Lowell’s Housing Market and Trends for 2017

Lowell is a great city for people looking for a place that they can call home. With the rich culture and history, Lowell offers many things for everyone – whether you are young or old. In addition to activities in the city, there are also a number of housing options. From single family to multifamily homes, you can find what you are searching for in Lowell.

Meanwhile, if you are a real estate investor, 2017 has been kind to sellers in the Lowell area. In fact, experts believe that the city is a sellers’ market at the current time.

Why Lowell is a Good Place to Invest in Real Estate

Lowell, MA presents many opportunities for those who want to buy and sell or invest in real estate properties. Since last year, the city has robust openings for sellers. April 2017, in particular, was a good month for investors. Now that 2017 is drawing to a close, it still remains a sellers’ market in Lowell.

According to a number of sellers in the area, there have been multiple offers for their homes and apartment units, which means that buyers are active. There are plenty of reasons why buyers are looking into owning a home in the city, making Lowell a desirable place to live in Massachusetts.

Currently, the real estate market in Lowell suffers from a low inventory where homes for sale are in very low numbers compared to nearby areas in the county. While this fact signals buyers there is not much option in the city, sellers can actually take advantage of the market’s condition.

Therefore, if you are thinking about selling your home that is located in Lowell, it is the right time to do so. 2017 is a good year for sellers, so you should not wait. It is also possible that the city will continue to have a sellers’ market until next year. You should certainly take the opportunity now and sell your home because of the low inventory and the ongoing increase in home values in the city. It is possible that putting your home up for sale in Lowell can give you the most return on investment you are looking for over a short period.

2017 Summary of the Real Estate Market in Lowell

Different housing options surround the city of Lowell in which there are single family properties, multifamily buildings, condos, and land. Lowell has an average of 153 listings per month in 2017 for single family homes with properties on sale spending an average of 65 days on the market. Single family homes have an average price of $332,000, while multifamily properties have an average of $370,000 for the list price.

The multifamily units spend fewer days on the market with an average of 57 days only. There are also condos in the city with an average list price of $224,000. Normally, they stay on the market for about 67 days. As for empty lots for sale, these pieces of land typically spend 82 days on the market and have an average price of $119,000.

Rental structures in the city have a median price of $1,000, which is quite low, making the city a great choice for those looking to save on steep prices in other cities such as Boston.

Meanwhile, for the overall housing market in the city, the median home value is marked at $242,000. There has been a decrease in home appreciation for the last ten years, but the housing market remains strong. It is expected that Lowell’s home prices will continue to rise by the end of the year until next year. The median age for the real estate properties in the city is 65 years, meaning there are tons of older homes for those who love structures with historic qualities.

According to data, there are more renters in the city than people who own homes. Renters make up more than 51% of the population, and there are about 7.53% of apartments and housing structures that are unoccupied. The vacancy rate has gone down compared to last year even though Lowell is a sellers’ market.

More Numbers for Lowell Real Estate

Compared to the national average of $185,800, Lowell has higher median home value despite competition with other major cities in the state. In the last 12 months, the city has a higher home appreciation with 4.35% compared to the national average of 3.74%.

Again, in comparison with the whole country, the property taxes in Lowell are a little higher costing $12.19 versus $11.80 in other areas.

Although the real estate market in the city fluctuates in value and activity, it is expected that the market will remain strong and steady. Based on the recent trends, the values will continue to increase in the coming months and is expected to rise seven percent next year.

Price per square foot has increased compared to last year from $170 to $178. Once again, it is a great time for sellers to take advantage of the flat real estate market in Lowell. There seems to be a lack of housing inventory in the area, causing buyers to make offers as quickly as they can for the homes or apartments they would like to own.

Sales remain strong in the city, as anticipated by experts. The lowest number of buyers for residential properties was in March of this year but quickly picked up the pace the following months.

As for rentals, the number of properties that are up for lease rises, especially in June and July. Rents also increase around that time or earlier such as in May and slowly decline in August. Nevertheless, Lowell is the city to go to and search for an apartment or rental unit that is affordable.

Compared to the Boston Metro average, the list price of homes may not be as steep in Lowell. Although this may not work in favor of sellers, there are always eager groups of buyers that are willing to make offers for certain homes in the city, especially those that have been around for at least 60 years. Buildings continue to get refurbished in the area to either preserve them or to use them for another purpose, such as an office or retail space.

Lowell Redevelopments: Old Mills Converted to New Apartments

Lowell has always been associated with mills. This city was known as the support fi the American Industrial Revolution because mills and factories were in huge numbers in the area. The history of the city will not be complete without mentioning these mills. From the Boston Manufacturing Company to the Mill Girls, there are lots of important stories about factories and textile mills in Lowell.

Today, some of these mills have been preserved to keep their form and structure. However, most of the buildings have been converted for reuse. Some were redeveloped and turned into museums, while others have been turned into mixed use spaces for restaurants, retail, and offices. Meanwhile, many of them have also become residential properties in the form of apartments and luxury lofts.

Here are some of the top conversions in the city where old, historic mills have been redeveloped for residential use:

The Adden Building

This building was built in 1846 and work started in 2016 to convert it into apartments. It has a total of 75 units when the project finished. The whole effort had a budget of $15.5 million and opened in the summer of 2017. Almost all the units in the apartment are rented at “market rates” except two units, which were designed for those families whose household income is equal to or less than 60% of the area median.

About 2/3 of the apartment building is made up of one bedroom units while the rest are also with one bedroom complete with a den. There are also others that have two bedrooms.

Massachusetts Mills

Located at 150 Massmills Drive in Lowell City, the famous mill is now redeveloped for reuse as residential apartment units. The building promises affordable options for those looking to rent an apartment.

The location of the mill-turned-apartment is quite appealing to potential renters because of its convenience. Not only is it close to the Lowell National Historical Park, but it is also nearby shopping stores and malls, nightlife, dining, and entertainment. There are also multiple bus routes for the Lowell Regional Transit Authority right at the property itself. Meanwhile, the Commuter Rail is just within one mile from the old mill, making it a great place for getting around the area.

The apartments are a good choice for students as well because it is just a short distance from the University of Massachusetts Lowell. Even the Middlesex Community College is easily accessible.

The Massachusetts Mills has a total of 57 apartments that are income based, while the others charge normal or market rates. The income-based apartment units allow those who cannot afford the high rental prices to have a place they can call home.

The community around Massachusetts Mills offer one, two, and three bedroom units where the tenants get access to a number of facilities, including extra storage, concierge package reception, a fitness center, and laundry facilities. The tenants can also access the seasonal swimming pool.

Meanwhile, for each apartment home, there are spacious kitchens. As the building was once a textile mill, the rooms have ceilings that are about 16 feet high. Renters can enjoy views of the city and the canal. There are also oversized windows for a more enjoyable viewing experience. Mini blinds are provided in each room for the windows. The floor plans are spacious and diverse, and bathrooms use ceramic tiles.

The homes are cable and Internet ready, and there are also closed circuit TV security systems to give renters a peace of mind. Car owners will also find it convenient that the apartment offers one car parking spot for every apartment. Pets are welcome, specifically cats.

Boiler House

One of the last two undeveloped mills along the Merrimack River, the Boiler House apartments offers views of the mentioned river as well as Concord. The building was once described as an eyesore but has been brought to life as an apartment house. Originally, the plan was to demolish the building, which is located in downtown Lowell but was simply redeveloped for modern use.

The Boiler House was awarded $600,000 worth of funds for cosmetic improvements, which started with the removal of the trees out of the roof. Windows were boarded up as well and later on, the building was renovated in the end phase of the project. The Boiler House plan was actually a part of the Massachusetts Mills project in which it was in the third phase of the redevelopment process. The whole effort relied on the cooperation of the city of Lowell as well as financial help from the government state.

Picker Building

Next to the Boiler House is the Picker Building, which also now stands as a collection of apartment homes with soaring ceilings. The five-story structure offers views of the city and the Merrimack River from its higher floors.

Work for the redevelopment of the Picker Building started in 2015 after several years of delay. The building once served as a textile manufacturing area during the industrial heyday of the city. During the early days of the reconstruction, there was a trailer set up as work began. The project was completed at the end of 2016 in which the building opened with 70 apartment units.

There were a number of issues before the start of the project. In fact, an unusual arrangement was taken to save the building and reuse it. It all stemmed from the inconvenient location of the building because it is tightly squeezed between the adjacent buildings, including the Boiler House, and the rivers. Therefore, there was not enough space for the fire trucks to access the building in case of an emergency.

Additionally, it was important that enough of the structure should be preserved to qualify for the tax credits. It was a bad deal that developers were not eager to take on the project. However, a compromise was reached in 2010 in which the final part of the plan would remove some of the western parts of the building, which would allow the fire trucks to get there.

Boott Mills

Boott Mills, located at John Street had an $800 million project in which the building was turned into both a commercial and residential property. The ideal setting in the heart of the city made the apartments of the building a desirable place to live.

The apartments that have been converted from the Boott Mills are set along the National Park and near the Merrimack River. They are just a few steps away from cafes and restaurants in the city. The converted structure has been divided into two buildings. Although renovation and revamping has been done for the buildings, they still bear the classic design of the Boott Mills, particularly at the eastern part of the complex.

In the east, the apartment building has a classic style, while in the west the Luxe Loft Style is in place. According to the developers of the Boott Mills, there is full amenity package for the tenants, which include an observation roof deck, lounge seating, and courtyards. A fitness center is also in the area for adults, as well as Wi-Fi lounge, restaurants, and media room.

The residents will enjoy the ceilings made of wood beam ceilings. There are also exposed brick walls, and great views of the city of the Merrimack River through the tall windows or the upper deck. The two buildings have their own set of features, particularly in the interiors. Renters can expect to find stainless steel appliances, white stone countertops, and a breakfast bar.

Loft 27

What was once a mill is now one of the popular residential properties in the city. Loft 27 is actually a part of Jackson Street Lofts, located right in downtown Lowell. There are three communities to choose from for interested applicants.

The lofts are SoHo inspired and come with spacious living spaces. Due to its history as a textile mill, the ceilings are vaulted, and the windows are massive where one can enjoy perfect views of the canal and the city. As for the kitchen, white cabinetry is in place, along with granite countertops, stainless steel appliances, and breakfast bars.

Other Conversions

Mill No. 5

If you have watched Dr. Seuss, the doors to the house of the doctor is actually located in Lowell, Massachusetts. It was used as the façade of the Georgian building in the series, which was in London. Mill No. 5 had several classic elements that were distinct to an 1873 mill. Instead of the standard look of a warehouse, this mill now has architectural components that resemble a more modern look.

From 2000 to 2012, the city of Lowell received $2.4 million in tax revenues due to the conversion of empty buildings in the downtown area. Most of these buildings used to be mills. There are still a handful of mil projects that are about to get or currently underway, and the city also received over $1 million in tax revenues in 2012 as well.

Developers believe that the reason why mills are converted into apartment buildings as well as commercial spaces is because of the advantage they have in many suburban communities. There is great potential housing inventory, thanks to the old mills and they are more competitive in pricing than those in the suburbs.

How is the Lowell MA Commercial Real Estate Market Faring in 2017?

When it comes to commercial real estate in the city of Lowell, there are plenty of options – both for developers and companies. Lowell offers several areas where there is always an opportunity to earn profits.

According to important statistics and market data, there are more renters in the city than homeowners. The latter only makes up 41.3% of the population, while tenants comprise the remaining 58.7%. The vacancy rate in the city is only 7.1% as several apartments and condos are occupied.

The average market rent in the city is $1,636. While a huge number of residential properties in the area are single family homes, there are still more apartment complexes in the city. Some old buildings have been converted into small apartments with at least 30 units. There are townhomes and mobile homes for rent as well.

The commercial and industrial tax rate is around $30 while residential tax rate grew to $14.92 for every $1,000 in the valuation of the property.

More Numbers about Lowell Commercial Real Estate

The average rent in the city has gone up compared to the previous year. The constant rising prices of homes have affected the rental market. Apartments are usually priced at $1,543 on average. As for studio apartments, the median rent is $1,124 per month.

One bedroom units often ask for $1, 412 for the monthly rents. Meanwhile, two bedroom apartments are generally priced at $1,622. Three bedroom units have an average price of $1,772. All these numbers have been updated starting the first week of November 2017. There is no change compared to last year’s average overall. However, studio apartments have seen an increase of nine percent this year compared to 2016.

The lowest change is for two bedroom apartments with only one percent year on year change, while three bedroom units have five percent change based on last year’s numbers. One bedroom apartment prices have gone up six percent against last year’s numbers. The average apartment size is 870 square feet. The largest, which are three bedroom units, have an average land size of $1,275 square feet.

Compared to other nearby cities, Lowell has much cheaper rates than Cambridge, Newton, and Somerville. It is currently one of the most affordable places for renters, whether for residential units or for office spaces, in comparison to cities like Acton, Woburn, and Framingham.

More Commercial Structures

The commercial real estate market in the city remains strong and sturdy. In fact, one of the largest tech companies in the entire state, Kronos Inc., just expanded and turned their headquarters into a more modern space.

The original plan was to add more space to the HQ for a total of 400,000 square feet. There were also added perks that would favor millennials, such as a fitness center, game room, bar, restaurants, and a daycare center.

The reason behind the expansion is to retain the recruited and top talents in the company. The idea was to provide the employees a much more enjoyable and smarter workplace. The improvements were unveiled at the Cross Point office park in the city.

After the growth of the building, space for it grew even more to over half a million square feet. After moving to the new campus in mid-2017, which measured a total of 435,000 square feet of space, the company also took another floor in the Cross Point tower and has also agreed to pay for almost 40,000 square feet in the third tower for next year’s lease.

As a result, the new home of Kronos Inc. now totals to more than 17 floors with over 500,000 square feet of space. The company left 330,000 square feet on Chelmsford Street, which was where its original HQ was established back in 2000.

The transfer and the expansion reflect that the company is having a good year and Lowell is still the best city to position its headquarters.

At the beginning of the year, a corporate HQ was also sold to a private real estate investment company. MACOM Technology Solutions’ headquarters at 100 Chelmsford Street was up for sale. The transaction happened off the market.

The commercial facility, which featured 150,000 square feet of space used for development, manufacturing, and research, was built in 1981. It was situated in the Route 3 corridor in which MACOM occupied and agreed to 20 years of lease duration.

Apart from these transactions, Patriot Care Corporation has installed a new facility in Lowell. The plan was to have about three facilities in the Boston area, and this one in the city of Lowell was the first. At that time, it was the sixth structure in the area with the same use as a medical marijuana resource. Patriot Care Corporation has the other two in Milk Street in Boston, while the other one is in western Massachusetts, particularly in Greenfield.

Voters had already approved of opening dispensaries of the drug back in 2012, and a few facilities for such purpose have been built in Brockton, Northampton, Salem, and Brookline. Meanwhile, the new Patriot Care facility is in 70 Industrial Avenue East in which the Lowell office market is built for it. It has 6,000 square feet of space and is a part of the 40,000 square feet for the cultivation facility, which is also in Lowell but with a different address.

The new facility has about 20 employees, and the other one in the city has approximately 40 workers for cultivating the plant.

Another development is courtesy of the University of Massachusetts Lowell. Its Medical Device Development Center was moved to 110 Canal, which is located at Hamilton Canal District. Originally, the development center was situated in downtown Lowell.

At this time, the UMass department was the first commercial tenant in the Hamilton Canal District, which signals that the city of Lowell was indeed going through a great time of revival.

It is not a secret that the fortunes of the city have been fluctuating for some time now. However, Lowell is finally on the right side of things, allowing millennials to find a good place where they can live, work, and play. For the $80 million development, the first phase of the UMass project is almost complete. The master plan involves $800 million for its budget, and by the time it finishes, over 425,000 square feet of commercial space, along with 725 units for residential will be provided for the tenants.

As part of this project, Appleton Mills was redeveloped into artist housing wit affordable prices for its 130 units. The whole project took $64 million out of the budget as well as 55,000 square feet of space. Today, it is fully occupied and is among the busiest in 110 Canal.

Also included in the project is the 920s textile plant, which was torn down and rebuilt using $14 million, along with the help of 20% tax credit for preserving some parts of the old structure. Only 30,000 square feet of space is available for lease.

Rents for offices continue to rise in Cambridge and Boston, as well as along Route 128. Thankfully for merchants, retailers, and the like, Lowell has become an affordable alternative for them. The asking rent is only $20.36 per square foot on average. It is definitely much less than the previously mentioned areas. However, compared to other surrounding places, particularly around Route 3 submarkets, the rent price is higher in Lowell because other areas only ask for $18.07 per square foot.

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