Northborough Crossing Sold For $128M

The Northborough Crossing shopping mall, which opened in 2011 and is home to such notable anchor stores as Wegmans, Kohl’s and BJ’s Wholesale Club, has been sold to a New York City-based developer and manager of shopping centers for $128 million.

Equity One Inc. bought the 24-store, nearly 600,000-square-foot shopping center near the junction of routes 9 and 20 in Northborough – the sixth largest in Central Massachusetts – from Newton-based New England Development and NED Management, according to data from the Worcester Registry of Deeds. The deal closed Thursday.

Equity One owns eight other properties in Massachusetts, including Webster Plaza in Webster and a smaller, 80,000-square foot shopping center on OId Connecticut Path in Framingham that’s anchored by a Stop & Shop supermarket.

Source: http://www.wbjournal.com/article/20121221/METROWEST01/121229983/northborough-crossing-sold-for-128m

security deposits for landlords

There’s a lot more to property management in Worcester County than keeping up with building maintenance and rent collection. Massachusetts has enacted tough landlord tenant laws to protect renters, which put complicated bookkeeping burdens on investment property and tenants have become better at working the system than ever.

There’s a lot more to property management in Worcester County than keeping up with building maintenance and rent collection. Massachusetts has enacted tough landlord tenant laws to protect renters, which put complicated bookkeeping burdens on investment property and tenants have become better at working the system than ever.

Malicious and Educated Tenants Take Advantage of Worcester Landlords

The tough economy and foreclosure crisis have spawned even more professional tenants who are purposely out to not just get free rent but milk every penny they can out of local landlords.

They know the system and will set up DIY landlords who have failed to take advantage of full service property management. Tenants know these mom and pop investors are easier targets and routinely victimize them.

They know the laws and set up landlords to take the fall and with new regulations siding with renters over property owners can often make a serious profit from swindling them, often walking away with several times the security deposit in cash.

Whether you are leasing multi-family property or single family homes you probably already know to stay away from anything which appears to be discrimination and how to be careful about evicting tenants but even seemingly small things like collecting and holding security deposits can land landlords in serious trouble.

Common Issues That Trip up Massachusetts Landlords

Many individuals are rushing to invest in real estate today in order to cash in on the market and simply don’t realize, that even by copying others they could be breaking the law and setting themselves up for disaster.

There are actually volumes of illegal practices listed which can trip up those renting out Mass. properties. One of the most common and overlooked is requesting illegal fees at move in. There are actually only 4 items which landlords can legally collect for under the law and savvy tenants can move in and then deduct any illegal fees paid from rent without fear of retribution.

Most are probably aware of the requirement to pay interest on security deposits but many are not aware of the strict demands regarding keeping these monies in separate accounts which are “protected from creditors”, having to disclose the account numbers to tenants and  the frequency of receipts needed to be delivered.

In fact, for those without professional full service property management the whole process is a minefield waiting to explode from running ads for renters, to drafting leases, what can be held when a tenant moves out and what can’t. Those who slip up face having to immediately return security deposits and being liable to pay out 3 times the amount of the deposit or possibly much more.

Before You Start Shredding Your Records…

Before you begin shredding the evidence of you past missteps know that you must maintain records for 2 years, even after a tenant moves out, which must be readily available to be produced on demand. If you can’t produce these bookkeeping records or refuse to, that will also cost you in penalties.

All of this together with the tough lessons in property management Worcester County property owners have recently learned from hurricane Sandy means it only makes sense to seek the help of a full service professional property management firm, in order to protect assets, income and investment returns.

A property manager is an expert in real estate matters. There are important reasons why a property owner should hire property management companies to take care of their real estate investment. This is because the functions of a real estate manager are crucial and are numerous. Their chief function is to deliver all that is expected in full service property management. They oversee all matters to do with building maintenance by carrying out regular inspections and repairs. They involve landscaping, electrical wiring, and plumbing, office leasing, keeping inventory and bookkeeping; plus following up with the contractors who regularly handle certain tasks on the property. They do this with a proper knowledge of the key players in the service delivery from local contractors, dealers and people who are well known to supply quality goods at affordable prices.

All these services pertain to the efficient management of industrial, residential, and commercial properties. The aim is to regard these functions as the integral part of the profitable management of real estate. Property management Worcester County realizes that people often find it pretty challenging to do all these functions by themselves, not just because they have no time for it but also that they may not have the required know how to deal with these tasks. This is why it is necessary to hire property management companies who have the expertise to handle everything for them at a fee. Normally the property management fees are treated as tax deductions, so verify this with the tax office.

Of even greater concern to property owners is the ability to interact with the general public in order to attract suitable tenants and be able to retain them. They can choose to hire an expert with the property marketing experience who can monitor rental listings to achieve a wide exposure for best rental rates, without spending much money, time and effort. It is true that identifying the rental rates that are the best in the market can be a daunting task for a non professional in property matters. The real estate owners benefit a lot when they hire property management companies with qualified personnel.

They have the right resources to handle extensive research on the market activities, and can obtain the perfect tenancy agreement. They also have the capacity to establish a rent collection system to ensure that rents are collected promptly, efficiently and put in the bank. This is great for warding off unnecessary friction or interference with the tenants. It is crucial in matters of office leasing or leasing multi-family apartments in key regions of Northborough, Worcester, Shrewsbury, Auburn, and Westborough.

Well, not all landlords are conversant with the prevailing property laws or regulations to ensure that they are in compliance with the guidelines of the State, or local county laws. They need professional advice or hire property management companies who have this knowledge. They can also look into issues such as prescreening of tenants to verify their security backgrounds. This is a crucial factor in making sure no unsuitable characters end up wrecking the features of the buildings or causing trouble to others. Establishing a Security Deposit Escrow is great for managing security deposit escrow cash because it reassures the tenants that their deposits are in a safe place, when it is in third party account. Hire property management companies that can introduce Emergency Calls Buffer that deals with late night calls for help in case of emergencies on any part of the property.

Affordable Property Management

As a property owner can you really afford not having a qualified property manager on your payroll? It seems like a silly question, but in fact of the reality is that most property owners that own at least four or more residential or commercial properties do not have a full service property management company handling their accounts. Can a property management company add value to your personal investments? The answer is yes. Such companies will add value to your commercial or residential real estate by handling the general tasks that are normally part of the routine of a property owner. There are unique benefits that will cut down costs and increase the value of your properties if you use a property manager.

You may ask what some of these benefits that are offered are. A professional property manager will attract higher quality tenants, decrease your time and cost in the court system, develop a shorter vacancy cycle of your personal properties, better retention of qualified tenants, develop a restrictive rent collection schedule, lower maintenance or repair costs and increase the value of your investment. The time tested benefits will allow you to focus on your business without taking your time to deal with tenants and the problems that arise.

The property management firm can deal with commercial real estate, industrial real estate or residential real estate investments. They will screen potential clients against the criteria that you have set forth and base the acceptance procedure on credit, references or other criteria that you have discussed with the team. They can match qualified tenants that will pay on time, rent for a long period, maintain the unit and cause fewer problems than a high school prom. They will prescreen the candidates with a proven screening process that will prevent a loss of time and profit, which will act like a buffer between you and the potential clients against scams, lawsuits and other negative issues!

Let your professional property manager handle the safety and property conditions of your properties, evictions, inspections, lease changes, lease terminations and other issues that will cut down on your time in court and court fees. Avoiding a single lawsuit can cover the cost of a property management firm cost. The firm can help improve the vacancy cycle by improving the property for rent, determining the best rental value by carefully assessing the market data, marketing the property effectively. Keeping your best tenants is high priority with a property management company; exclusive tools that benefit both you and your tenants will keep both parties happy. This includes everything from low cost maintenance to specialized leasing agreements that can be set up in no time.

Collecting rent and enforcing late payment fees is a strain on your time and distracts from the positive cash flow for your business. The property manager can enforce your late payment policy and collect the rent for you. They can listen to the reasons, chase down the rent and evict the tenant if they meet the conditions of an eviction. A property management company is very cost effective and is a great resource to handle your properties. A great way to save you time and money.

leaning-building

Marlborough, Westborough Have Largest Office Vacancies
MATT PILON

Take a drive down 495 or the Massachusetts Turnpike through the MetroWest region and you will see a number of office buildings.

It seems there are plenty of options for any company looking for lease space in the region. And that perception, at least for the foreseeable future, would be accurate, according to analysts from Jones Lang LaSalle (JLL). In fact, there is more office space than the market seems to want, according to the latest data from the commercial real estate firm’s Boston office.

The average vacancy rate in the 495/Pike area is 19.5 percent, driven largely by some sizable vacancies in Marlborough and Westborough. Compare that to 14.7 percent in Greater Boston.

Of course, like in any market, there are areas of strength in MetroWest. Large vacancies are rare in properties closer to Route 128, such as Framingham and Natick. Anyone looking for 100,000 square feet or more right now will have to look elsewhere.

But that somewhat welcome problem doesn’t exist elsewhere in MetroWest. Even after the sale of the 700,000-square-foot Fidelity Investments campus earlier this year to the TJX Cos., large vacancies remain, noted Jeffrey Bramhall, a research analyst with JLL.

Square Feet To Spare

The Fidelity campus sale is a part of the shifting numbers. TJX is vacating nearly 130,000 square feet on Flanders Road in Westborough and consolidating to its new property, Bramhall said.

And according to Jones Lang LaSalle’s most recent data, which covers the second quarter, sizable vacancies in Marlborough and Westborough total more than 730,000 square feet. Properties on that list include Carruth Capital’s 4400 Computer Drive property in Westborough and three properties in Marlborough, on Williams Street, Campus Drive and Nickerson Road.

Bramhall said the office market around the Pike may not appear strong at first glance because its net absorption so far this year is well into the negative.

But he said that figure is actually slightly positive when the Fidelity deal, which skewed the numbers by removing a large chunk of office space from the market, is taken into account.

With many firms seeking to reduce the size of their offices for cost and efficiency reasons, positive absorption is a good sign, he said.

Recent moves Bramhall sees as positives include insurance provider OneShield Inc.’s expansion from a property in Westborough to a 30,000-square-foot space in Marlborough. And communications technology company ARRIS Group just renewed nearly 30,000 square feet in Westborough.

“There is something strong here,” Bramhall said. “This is a market that has a structurally high vacancy rate but it’s not doing too badly.”

Farther up 495, where properties tend to be a bit older, the market is even softer, averaging 22.6-percent vacancy in the second quarter.

Rebecca Herbst, a JLL research analyst who covers the northern region, said with Cambridge and the 128 belt seeing a lot more lease and development action lately, it’s likely going to be a while before 495 North can recover. Herbst thinks the market will not improve greatly until companies grow organically or absorb other companies, creating the need for more space.

“The rents are bottoming out,” she said. “There is a ton of class A and B space on the market.”

As noted by her colleague, Herbst said tenants are downsizing space or subleasing portions of it.

“To be fair, there just haven’t been any major lease signings in the 495 North market,” she said.

In a market where virtually no new office space is being built west of 128, there is an exception in Westford. Red Hat is adding 100,000 square feet to its facility there.

But the rest of the market has largely been driven by renewals, such as Kronos’ lease renewal for more than 190,000 square feet of space in Chelmsford, she added.

Image credit: freedigitalphotos.net

collecting condo fees on your property

Being a member of a condominium association board can be a challenging and rewarding undertaking. One common challenge is collecting delinquent condo fees. This can be a very time consuming and frustrating endeavor. A good association management company can make this process go smoothly and save the board members time and headaches. Knowing how to deal with this problem and how the state of Massachusetts can help is essential. Fortunately for CentralMassachusetts condominiums associations and property managers, there are provisions in the Massachusetts Condominium Act that allow for tools to facilitate condo fee collections. Any late fees associated with a condo become a lien against the property. This means that the owner of the condo is legally liable for paying these fees. Condo fee collections are allowed once a fee becomes a lien against the property. The law allows these fees to be considered a lien against the property starting on the date they are due.

If there are liens on a property, the property manager or condominium association may have the ability to sell the unit in a foreclosure auction. It is important for property managers or condo associations to properly file paperwork to realize the full benefits outlined in the Massachusetts Condominium Act. For instance, filing a super-priority condo lien gives the manager or trust priority over the mortgage company, but notices regarding the lien must be sent to both the mortgage lender and the owner of the unit. If the condo is sold at auction, a super-priority lien will allow the manager or trust to continue collection efforts for up to six months worth of unpaid fees. Lenders are not able to recover fees before the manager or trust if there are outstanding liens on the property. In order for the property to be free and clear of liens, the manager or trust must sign a certificate in association with the Massachusetts Condominium Act, section 6(d). Fees associated with liens must be paid. If the unit owner feels that the charges are unjust, he will not be able to avoid payment as long as there is a lien on the property. Besides being able to use funds for projects and paperwork associated with the condo, there are outside considerations to take into account. Lending guidelines associated with FHA, Freddie Mac and Fannie Mae loans dictate how many condos in an association can have delinquent condo management fees. If more than 15 percent of the condos in an association haven’t paid fees for 30 days or more, the management group or owner will not be eligible for financing.

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71 Lyman Street, Northborough is a 30,000 sq ft office building and flex building. The property is located just off Route 9 on Lyman Street in Northborough. This building was owner occupied until the business was acquired and they moved to a new location.

“We are excited about this project” say Matthew Mayrand, Principal, May Property Management.” This building needed an efficient manager to continue implement a maintenance program and promptly respond to service calls.

It is critical to quickly address tenants questions or issues. They count on us for their business. We are a part of their team. If they need us, we are available, and we respond quickly. Working with the existing tenants, May Property Management has dramatically reduced service call response time. This high level of service provides a better tenant experience, which leads to tenant retention.

In addition to maintenance and tenant management, May Property Management was hired to manage all of the financial aspects of the property. They will be responsible for A/R, A/P, P&L, Balance Sheet, budgeting and reporting.

Kelleher & Sadowsky Associates, Inc has been hired to handle the brokerage for the buildings. The building is for sale and for lease.

law-school

Massachusetts has very clear regulations relating to the operation of a condominium association and the rules and responsibilities of the board, unit owners, and tenants. This link leads to the main page of the MGL Chapter 183a

Source: http://www.malegislature.gov/Laws/GeneralLaws/PartII/TitleI/Chapter183A

hire a property management company in Worcester
Hiring a
company can be great for your business, or not.

If you are a landlord, one of the biggest decisions you will ever make is whether you should hire somebody for your property management. There are some landlords that manage properties on their own, with some additional help. Then there are times when a landlord needs more help, and a property management company might make sense.

A good property management can be an asset to your business, and at May Property Management we can provide you with many options to make your business run much more efficiently.

What Can May Property Management Company Do?

Here is a small sample of what May Property Management can do for you.

  • Deal directly with prospects and tenants,
  • Saving you time and worry over marketing your rentals,
  • Collecting rent,
  • Handling maintenance and repair issues,
  • Responding to tenant complaints, and even pursuing evictions.

Finally, May Property Management company is an independent contractor, so you avoid the hassles of being an employer.

For a full list of services we provide click on this link May Property Management Services.