SOMERVILLE, MA – Kumo Capital is pleased to announce the successful sale of the fully-permitted Lumina development project at 13-17 Allen Street in the first quarter of 2020. The sale of this shovel-ready site, approved for a 40-unit residential building, marks the successful culmination of a multi-faceted pre-development and entitlement process handled by the Kumo Capital team. This project underscores our firm’s capability to unlock significant value by navigating complex urban development landscapes.
A Premier Transit-Oriented Location
The Lumina project is strategically located in the heart of Somerville’s vibrant Union Square neighborhood, a designated Urban Residential (UR) Zoning District. The site is situated directly adjacent to Phase 1 of the D2 parcel of the Union Square Master Development, a transformative initiative set to bring 1.2 million square feet of new lab and office space, thousands of square feet of retail and arts spaces, and 3.6 acres of new parks to the community.
This development was designed as a true transit-oriented project. Located within a quarter-mile of the new Union Square Green Line Train Station, it offers future residents unparalleled access to Greater Boston’s public transportation network. In line with modern urban planning principles, the project was designed to include zero vehicular parking spaces, instead offering twenty long-term bicycle parking spaces to encourage sustainable transit options.
Navigating Complex Entitlements to Create Value
The path from acquisition to a fully-permitted site was a testament to our team’s diligence and expertise. The project began with the strategic acquisition of two contiguous residential lots, which were previously occupied by two structures scheduled for demolition. Kumo Capital successfully navigated the municipal process to have the Lot Merger Plan and Decision officially recorded, creating the single parcel for the development.
Our team undertook a rigorous and complex entitlement process, which involved:
- Multiple Presentations to Historical Zoning Boards: We engaged extensively with local historical boards to ensure the project’s design was respectful of the community’s character while meeting modern needs.
- Securing MWRA Permitting: A critical and complex step in Massachusetts development involved achieving full compliance and permitting with the Massachusetts Water Resources Authority (MWRA).
- Complex Utility Negotiations: To mitigate significant infrastructure costs, our team successfully negotiated with a large, neighboring national developer to establish shared underground electrical connections, a creative solution that benefited both projects.
- Developing a Complete Project Manual: We orchestrated the creation of a comprehensive project manual, delivering a truly shovel-ready site. This included full architectural, MEP (Mechanical, Electrical, and Plumbing), structural, landscape, and hardware plans.
- Massachusetts Water Resources Authority (MWRA)
A Blueprint for Sustainable Urban Living
Lumina was designed with sustainability as a core principle. The building plans were engineered to meet the highest standards of green construction, designed as a LEED Platinum certifiable and Passive House ready building. The project was part of the MassSave Passive House Incentive Program, with design input from a Certified Passive House Consultant.
Key features of the sustainable design include:
- Passive House Standards: The building was designed to meet the PHIUS+ Core 2021 program requirements, featuring superior airtightness, high-performance envelope R-values, and advanced window and HVAC systems. These features dramatically reduce energy consumption, leading to significant long-term cost savings for residents.
- All-Electric Systems: The project was designed to be entirely electric, eliminating on-site fossil fuel consumption and reducing its carbon footprint.
- LEED Platinum Goal: The design aims for the highest level of LEED certification, recognizing its leadership in energy and environmental design.
The commitment to these green building standards not only ensures a healthier living environment but also increases the property’s long-term value and marketability.
The successful entitlement and sale of the Lumina site for a solid return in Q1 2020 showcases Kumo Capital’s specialization in identifying and capitalizing on strategic real estate opportunities. Our ability to manage ground-up projects, navigate complex regulatory landscapes, and deliver a fully-realized vision creates profitable investments and contributes to the vitality of urban communities.
