2007 JULY - ETI Policy Includes Real Estate - Ever since the Commonwealth’s pension fund (PRIT) adopted an Economically Targeted Investment (ETI) policy in 2003, the program has steadily grown, especially in the area of real estate.
<*><*>Late last year, real estate manager Canyon Johnson began work on a
mixed-use Charlestown project that will include 146 condominium units,
including 15 affordable and 131 market-rate units. This project has
created nearly 100 jobs thus far.<* />
The $53.75 million Charlestown project, which also includes 190
structured parking spaces, is located on Brighton Street adjacent to
the Sullivan Square MBTA station. Market rate unit prices will begin at
$330,000, with an average price of $434,000. The affordable units will
be priced at $183,000 per unit.<*>ETI developer, New Boston Co., will be embarking on the largest
development Boston has seen in 60 years. Known as the Olmstead Green
Project, it is a 42-acre mixed-use development in the former Boston
State Hospital site in Mattapan. The new urban village will be built in
four phases, providing 287 market rate townhouses and condominiums, 153
affordable rentals, and 83 units of affordable senior housing. There
will also be a 123 bed skilled nursing facility, an urban farm, a job
training center and a four season building facility. Olmstead Green is
expected to create 400 construction jobs and 400 permanent jobs in the
Commonwealth.<*>Other ETI real estate managers also have projects in the pipeline.
Intercontinental currently holds two Massachusetts-based properties
that are expected to provide future tax revenue and generate thousands
of labor hours for Massachusetts vendors, building trades, construction
companies, sub-contractors and local business in
general.<*>Canyon Johnson, in partnership with the Asian Community Development
Corporation, is also scheduled to construct a complex at the corner of
Kneeland and Hudson Streets in Boston’s Chinatown District. There will
be 315 rental and condominium units with both market and affordable
rates.<*>“Our ETI program is required to seek the same rate of return as other
comparable investments,” says PRIT Real Estate co-chairman Ralph White.
“It’s a plus to be able to help the economy along with affordable and
market rate housing in Massachusetts, but our annualized investment
return expectation will never be compromised. Also we are not in the
real estate management business.” <*>PRIT’s annualized real estate investment return has been 15.5% over the last 10 years.”