Chelsea’s Commitment to Industrial Areas Spurs Major Purchases

October 13, 2017
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By Seth Daniel

Residential is king in today’s development world, with developers vying for land to build luxury apartments where previously no one would have even parked their car.

That means, however, that industrial areas are shrinking or disappearing in the Greater Boston area, and places like Chelsea’s industrial area on Eastern Avenue and Marginal Streets are commanding high prices and great interest from developers intent on grabbing committed industrial property before it disappers.

That couldn’t be more true in Chelsea, where industrial/commercial properties are commanding a premium after several recent notable sales, and major developers from the region are scooping them up before it’s too late.

On Eastern Avenue, National Development – a well-known development company with major holdings in Boston, including the trendy new residential Ink Block development – has purchased 130 Eastern Ave. for $10 million in August from the Cohen Family, according to property records.

Pending a zoning variance, they plan to demolish the entire existing 38,000 sq. ft. warehouse on the seven-acre site.

Ted Tye of National Development said they hope to start construction on the new 32-foot clear height building in late 2017 upon completing final designs and receiving all the permits and approvals. They expect construction to conclude  in fall 2018.

Tye said they have one tenant for the new property, but that tenant hasn’t been disclosed yet.

“There is an increasing demand in Greater Boston for quality distribution space close to Boston,” said Tye. “Chelsea is ideally located and has been great to work with on expanding the City’s commercial base.”

Part of the certainty comes from the fact, City Manager Tom Ambrosino said, that Chelsea has committed itself to keeping things industrial – unlike other areas, such as Everett’s Lower Broadway area by Wynn Boston Harbor casino where all bets against residential creeping in are off right now.

“I think we have made a commitment to see industrial areas that are now industrial to remain industrial and that these areas are relatively important to the City,” he said. “We have plenty of areas for residential expansion, including the Forbes site. I think we’re committed to retaining a vibrant industrial district. Chelsea historically has done a great job. We’re not likely to create residential developments in our industrial areas.”

Ambrosino said one thing the City requires is that in the development of these new properties, that they are improved aesthetically a bit. For example, National Development will landscape its property upon completion, and the new LTI Limo Company – which moved from Everett’s Lower Broadway area to Chelsea’s Eastern Avenue this year after being bought out by Wynn – is also going to landscape its property significantly.

“There aren’t a lot of industrial areas in Greater Boston and so this industrial area has become quite desirable,” said Ambrosino.

Meanwhile, just last week, more significant action took place in the district with the sale of two prominent warehouse to the Seyon Group, a Boston commercial development firm with 30 years of experience.

E-mails to Seyon Group were not answered in time for this story, but property records – first reported by Bldup.com – showed that Seyon purchased two warehouses for more $10 million total last week.

They purchased 201 Crescent Ave. from New England Lighting Company, which is closing down, for $3.75 million. New England Lighting bought the warehouse in 2009 for $2.65 million. The building is empty and for lease.

Meanwhile, at the same time, Seyon Group bought 150 Eastern Ave. from O’Brien Realty for $7.475 million. O’Brien also owns 140 Eastern Ave., and it purchased 150 Eastern Ave. in 2015 for just $4 million – nearly doubling their money in two years time.


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