In real estate, value has returned to Rhode Island.
The residential market had one of its strongest years in a decade in 2016, with sale volume and median prices rising consistently through the year.
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In the commercial market, several prominent buildings changed hands, and other sites were placed on the market, with owners hoping to capture stronger prices. Among the transactions: the purchase by Paolino Properties LP of the Tilden-Thurber building in downtown Providence for $712,000, and the purchase by a Boston developer of the Kresge Building and historic home of the Providence Journal newspaper for $2.3 million.
The residential market in the third quarter broke all previous quarterly records for the Rhode Island Association of Realtors, which reports sales in which Realtors were involved.
The data for July through September showed a 10.2 percent increase in sales, and a statewide median price that rose to $245,000. That’s the highest median for the state since 2008, although Realtors do not believe it signals a return to the pre-Great Recession real estate bubble.
In commercial assessments, values rose consistently across Rhode Island. In Providence, the commercial tax base grew nearly 8 percent in 2016, the first revaluation in three years.
In commercial real estate, new construction in the Interstate 195 Redevelopment District of Providence has started to appear. Some key projects related to this area:
In January, a purchase and sale agreement for two prominent parcels in the I-195 corridor was signed by Wexford Science & Technology LLC and CV Properties LLC. The companies are pursuing a large, bioscience and mixed-use research center on two parcels of the former highway lands, one that is seen by government officials as transformative for the district.
In September, Gov. Gina M. Raimondo authorized development of the $45 million Garrahy parking garage, which was sought by Wexford for parking for its tenants. The 1,200-space garage will be built over the existing parking lot of the Garrahy Judicial Complex. Construction will be financed through bonds issued by the R.I. Convention Center Authority.
In late September, the development team that is renovating the historic Irons & Russell Building in the Jewelry District just outside the I-195 boundaries announced its interest in acquiring Parcel 30, a slender property of I-195 land adjacent to its ongoing project. The developer, Waldorf Capital Management LLC, said it hopes to construct compact, modern apartments in a new, $17 million building.
In October, construction began on the long-awaited pedestrian bridge over the Providence River, which will connect the East Side to Downtown Providence parcels of the I-195 district. The bridge is expected to cost nearly $17 million and was viewed as critical to the successful marketing of remaining I-195 land.
In addition, construction has progressed on the $220 million South Street Landing project near the I-195 land, which is to include a parking garage, a shared facility for nursing education involving the University of Rhode Island and Rhode Island College, administrative offices for Brown University, and new apartments. Construction of the garage was nearing completion in early November. The renovation of the former power plant building is scheduled to be completed in summer 2017. •
