Private investor acquires site of denied Newton residential development

A private investor has acquired 135 Wells Avenue in Newton, the 6.3-acre site of a denied residential development project and an existing 62,000-square-foot industrial building, for $15 million. The sale of the industrial building amounts to $242 per square foot. Seller Cabot, Cabot & Forbes had sought to demolish the existing building and construct a 334-unit mixed-income housing development on the site; however, due to a deed restriction designating the site for manufacturing use, the development was denied approval and ultimately barred by the State of Massachusetts’ Supreme Judicial Court.

The existing building is fully leased to Boston Sports Clubs through early 2023. The landlord retains a lease termination right with 180 days’ notice, enabling redevelopment to take place in the near future. Though any residential redevelopment would require a zoning change, the site is primed for redevelopment including office, retail, mixed use, medical office and creative office uses.

HFF represented Cabot, Cabot & Forbes in the sale of 135 Wells Avenue and procured investor G&Z Real Estate Investment LLC as the buyer. Cabot, Cabot & Forbes listed 135 Wells Avenue for sale last summer and acquired the property for about $16.4 million, about $265 per building square foot, in June 2014.

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