Board of Aldermen 09-28-2021 Page 11
| think to be very, very frank, | think part of the issue of why return expectations are much higher in Nashua than other
places is because the city is more accommodating with its regulatory and its financial incentives to make it happen. But
there is the reality of that. There isn't a wide variety of investors that are willing to come to Nashua because there is so
much work in other markets, particularly within you know, the more immediate Boston metro area. There's so much
activity going on in those places that they don't have to, if that makes sense. And So it does create a little bit of well, we
don't have the same level of competition. So as a result, the investment community can have a different expectation
because there's not as much competition, if you will.
However, | think it's a balance between the two which is there's not as much competition. | don't believe that's because
it's higher risk as much. It is a little bit more risky because, you know, particularly multi-family development hasn't really
happened except for the last few years. | think that the proof is in the marketplace with a number of the developments
that have been come online and have been very successful. No one really likes to be the first person in, especially in the
real estate world. They tend to want to see proof of concept and then you'll see interest.
To that point is | think it's a combination of things. | think, is a combination of to this point, there hasn't been a lot of
competition to get access to these developments. And two is because | think the city has been very, very aggressive in
trying to make development happen. And so they've been providing regulatory and financial incentives that face that
effectively bump up the return. If I'm getting that return on this project, I'm going to see if | can try and get it on the next
one too.
Alderwoman Lu
Okay, thank you. | can pass to someone else if there are other questions. | have two more.
President Wilshire
That's fine. Go ahead.
Alderwoman Lu
Okay. Oh were you able to do any - | know that you started looking at 2018 and this study is described as through 2000 -
well a lot of the assumptions or the data was gathered through that year. I'm just thinking about projected growth. Do you
still feel it's projected to be the same 7,400 additional residents in the next 12 years?
Kyle Talente, President of RKG Associates
So you answer your question very clearly is yes. We didn't come across anything in doing this analysis that would make
us question that projection of information. Frankly, if anything, the impact of COVID in terms of folks wanting to move out
of highly dense areas, the current proliferation of telecommuting and folks not having to live as close to their job because
they don't have to go into work every day might even drive those numbers higher. | mean, Nashua is a very attractive
place to live. It is still “close enough to Boston” that if | only have to go into the office once or twice a week, that it
becomes a very viable option. And so if anything, | would say the last couple of years may have made that demand
increase not decrease.
Alderwoman Lu
Okay, thank you. Will you be sending us the PowerPoint?
Kyle Talente, President of RKG Associates
Absolutely. Yes. | believe Sarah already has it but I'll make sure that it gets into your hands this evening. T
Alderwoman Lu
Thank you. I'm all set. Thank you.
President Wilshire
Thank you. Anyone else have questions?
