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Charlestown Investment Properties

Charlestown, the oldest neighborhood in Boston, was founded in 1629 and served as the first capital of Massachusetts Bay Colony. The neighborhood is north of the Charles River on a peninsula overlooking Boston Harbor and Mystic River. Waterfront condos have scenic views of the Bunker Hill Memorial and the Boston Naval Ship Yard, part of the Boston Freedom Trail.

Colonial red brick row houses, wood row houses, public housing and newer, upscale condominiums characterize the Charlestown neighborhood. Several subdivisions with attractive street views were built between the 1830s and 1860s around Sullivan's Square. Well-proportioned brick houses from the mid-1800s line Monument Square. An eclectic mix of restaurants include Warren Tavern, the oldest in Massachusetts, and commercial enterprises in renovated historic buildings complement the use of space in the area.

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Charlestown Residential Investments

In Charlestown, fewer residences come up for sale than for Boston as a whole. One-bedroom condos are at a premium. As of May 2015, several new multi-family units that include more than 200 apartments and 100 condominiums were in the planning stage or under construction. Several include ground-floor retail and office space.

Charlestown's median home value was $618,000 in May 2015, a 9.1 percent increase over the previous year. An increase in value of 5.8 percent is forecast for 2016. Median rent prices were $2,520, higher than Boston's $2,485. The foreclosure rate was 1.6 homes per 10,000, greater than the overall Boston rate of 1.2 but lower than the national rate of 3.9.

Choosing the Right Charlestown Investment Property

With several hundred new housing units to be added, the future for residential investment in Charlestown looks positive. Luxury condos in desirable neighborhoods are often sold during the pre-occupancy phase. Working with an established real estate firm with experience in the area's market is key to successful investing. If you are buying, the pre-sales agents at Boston City Properties help investors find pre-construction properties with the greatest potential for high returns. Pre-sales purchases often allow investors to customize units as they are built. If you are selling, professional marketing is critical to successful sales. We provide exposure through a variety of marketing channels including more than 75 websites. Call us at 617-247-1933 for more information about Charlestown residential property.

Charlestown Real Estate Overview 2017

Charlestown real estate market has always been competitive. Over the past year, it has seen an improvement of 16% in median home sales, equivalent to a $94,000 increase. The average price of properties per square foot was up from $655 to $688.

The highest priced home was in Decatur Street, which was listed for $998,000. Walford Way and Riley Way also saw high prices in their areas as there were properties that were listed for an average of $689,000.

The median sales price in September last year was just around $600,000 and each month it would grow for a little bit of percentage until January 2017 where the median sales price was $614,844. March saw the highest growth in which the home sales prices had an average of $698,000. Although the next few months slowed down a bit, the change was minimal and the sales price average went up again in June where it was steady from there.

Comparing the properties’ sales prices from last year, all of them increased year on year:

All the properties have a 15.9 y-o-y increase. Rentals, on the other hand, greatly increased when 2017 opened, especially compared to November. Before 2016 ended, the rents were $2,300 per month on average. In January 2017, the rents hiked up to $3,900. The rentals decreased their prices again in February till August. The average rent price is $2,600, which is $1,000 lower than the Boston median.

The home value index in Charlestown is $736,700 this year, which is a positive change from last year. The 8.2% is expected to rise at least four percent next year or in the coming months. The real estate market, although competitive, is neither a buyer’s nor a seller’s market.

There seems to be sufficient inventory in the neighborhood and at the same time, the prices appear to be beneficial to both sellers and buyers. However, the list price for every square foot is much higher in Charlestown compared to the average in Boston, which is only $661.

The One Charlestown Project

On paper, the project, which is designed to rebuild this Boston neighborhood’s crumbling housing complex, is quite simple. A developer will build 2,100 apartments and the proceeds will go to creating 1,100 more units. The first group of apartment units is luxury or high-end apartments, while the second set is for the poor.

However, the One Charlestown project has faced some problems. The snug streets of one of the oldest neighborhoods in Boston will not make it easy for the project. Both the development company and the Boston Housing Authority had some stiff pushback when it comes to their experimental approach for the redevelopment of the public housing community in the area. It would involve the use of several private market units, so that the new housing for the poor would be underwritten.

Some of the residents in the area were not too happy with the project because more apartments in Charlestown may not be right for the neighborhood and it would be too much for it to handle, according to them.

The residents were worrying about the wall that the six story apartment would create, which would block the tidy streets of Charlestown. The row houses and small homes around Bunker Hills would be obstructed from view. Additionally, because there would be an increase in the number of public homes, there will also be an increase in the number of residents in the area. It will undoubtedly result to hundred more cars and the roads will become even more crowded.

The debate went on for a while as the developers had to leverage the hot real estate market to provide housing for the poor residents. The Housing Authority has been soliciting developers in places like Charlestown and South Boston to upgrade the large projects in exchange for housing that is market-rate and not just high-end ones.

It was in 2015 when the Housing Authority chose this Charlestown project. The budget was $1 billion for the construction of 3,200 condos and apartments in about 14 buildings. However, despite the negative reaction of the locals in the area, a decision was made. The developers are now set to replace the existing affordable apartments, totaling to 1,100 units, at Bunker Hill.

The developers are also planning to add 2,100 apartments, which will be market rate, along with some workforce units for the employees. The workforce apartments have a more reasonable price for those who have lower wages. One Charlestown also includes plans for developing two new parks, along with 90,000 square feet of space to be used for civic and retail. There will also be streetscape improvements, which would improve landscaping and connectivity.

Indeed, the One Charlestown project is set to be one of the biggest Boston developments this year as it will take 3,300,000 square feet over a 24-acre land. The plan is still on review but it is already anticipated because of its massiveness and the possibility of having a more accessible rate for condos. After all, Charlestown’s condo prices keep soaring.

The neighborhood increased 50% in condo prices from 2011 to 2015 and the amount just keeps surging. While the condos are becoming more expensive in other areas in Boston, there is a difference in Charlestown. In those other places, it seemed like there is always a new building sprouting but not in this neighborhood.

The quantity has always been limited so there is not much demand to chase. The surprising fact is that there is still a price increase in the neighborhood even if there is an increase in inventory. Typically, the prices will go down.

Nevertheless, with the upcoming One Charlestown project, it looks like things are going to change for a little bit in this part of Boston.

No Sign of Slowing Down in Property Sales in Charlestown

Since 2011, this neighborhood has seen an increase in its condo prices, especially during the peak buying season. It usually takes place anytime from April to August. The price hike reached 50% with the average condo sales price starting from $438,559 to $657,501.

The past year showed that Charlestown’s prices, particularly the condominiums, increased by 12%. The trends display that there is no way the prices are going down anytime soon. However, despite the increasing prices, there are still a number of properties that were up for sale and immediately got deals.

One of the notable ones is the condominium at 374-398 Bunker Hill Street. The condo was up for sale and was bought for $1,550,000. Another condo that was just recently sold this December 2017 is the one located at 113 High Street. The #2 condo unit was a part of a building built in 1880. The whole condo has six rooms with three bedrooms and two baths, all totaling to 1,807 square feet of space. The asking price was $1,250,000.

Another condominium is a free-standing unit at 277 Bunker Hill. It was built in 1965 and has a total of 1,906 square feet, which includes six rooms as well, along with three beds and two baths. It is less expensive than the one at High Street as the asking price was just $989,000.

A condo townhouse, which is relatively new, went for sale at 73 Chelsea Street. The #408 unit was built in 2000 and includes five rooms, two beds, and 2.5 baths. The 1,175 square foot property got an offer for $917,000.

One more sold property in Charlestown is at 90 Baldwin Street in which a one-family row-middle home was grabbed for $865,000. It was indeed a good deal since the 1870 house is quite spacious with nine rooms, three beds, and 2.5 baths. The whole property measured 2,050 square feet. The same type of property was sold as well at 10 Lexington Avenue. It is older than the previous one as it was built in 1835, although it is much smaller with just 1,082 square feet of space. It went on sale for $801,000.

More sales keep happening in the whole Charlestown neighborhood. Many people still look at this place for affordable homes and condos, although several properties are increasing their prices along with the others.

Of course, you can still find some affordable homes in Charlestown. In fact, there is a property for sale with non-decorative fireplace – the one that actually burns wood – and it is only asking for $485,000 or $730 per square foot. It is a two-bedroom condo that measures 664 square feet in total.

New Housing in Charlestown

It is also worth-mentioning that there are new condo developments in the area as the developer of the Fort Point Channel saw the potential in Charlestown. Fort Point Channel’s redevelopment helped transform it into one of the hottest neighborhoods in Boston. In 2015, the developer submitted a proposal for Sullivan Square in Charlestown. The idea was to create a 177-unit apartment, along with retail space. It is currently one of the major developments in the neighborhood this year.

The plan included the construction of two separate buildings, which will be used as apartments. They will be linked together using a smaller three-story connection. These structures would take shape close to the T station at Sullivan Square.

When taking a look at the proposal of the developer, it requires the renovation of the Graphic Arts Building, which is a three-story construction over at 32 Cambridge Street. It will allow the positioning of 52 apartments, along with 2,500 square feet for ground floor retail. The plan for it was for a bakery, although that could still change.

In addition, the plan would also call for the tearing down and replacement of the building on Rutherford Avenue. It is just a one-story structure and the developers are planning to replace it with a taller building with four stories. It will come with the 119 apartments.

There will also be a courtyard and a place for dogs to run. The green space will be landscaped and there will be a total of 113 spaces for parking. Most of these spaces are in a garage below-ground. These are just some of the amenities of this development.

Several groups are quite excited about it, especially since the developer is well-regarded for the Fort Point project. It played an important role when it comes to the redevelopment of the warehouse and industrial areas along South Station and the Seaport. It was during that time when they converted two late century warehouses into condos with 92 units. The condominiums are topped with glass penthouses. The developers also added a third modern building in the area.

Since the Boston officials are in the midst of making an effort aimed at improving the Sullivan Square, which is clogged with traffic, infrastructure improvements and roadway are welcomed developments. The proposal for this project said that it will total to over $1 billion for all the work required.

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