MV24 Lofts symbol of real estate shift

LYNN – When the Mayo Group completed the transformation of a Mount Vernon Street industrial building into loft-style residences earlier this year, a banner was draped across the façade, local real estate agents were notified, and potential homebuyers were invited to an open house.”Nobody came,” said John McGrail, principal of the Mayo Group. “We started out trying to sell these condos back in May or June, but the market isn’t cooperating.”According to McGrail, a crisis among the nation’s mortgage lenders, fear on the part of would-be homebuyers, and rising costs have created what he described as a perfect storm.”The easy thing for us to do would be to do nothing, to rent this building out and see where it goes from there. But we’re trying to do something to protect the investment we have made in Lynn, this one and the ones we plan to make in the future.”Instead of pulling the plug, the Mayo Group is asking the city to amend the special permit for the project at 24 Mount Vernon St., known as the MV24 Lofts.Ed O’Donnell, vice president of development at Mayo Group, said the company is seeking to increase the number of units from 32 to 49.Currently there are four two-bedroom units and the remainder are open lofts of varying size, from 600 square feet to more than 1,000.The City Council will hold a public hearing on the request Tuesday at City Hall.”We believe this is in everybody’s best interest,” said McGrail. “We’re the heaviest investor in downtown Lynn right now.”McGrail said the project originally cost $7 million and could reach $8.5 million with the planned renovations. “The target market, which is first-time homebuyers, has not changed,” he said. “Creating more units reduces the square footage of some, so that they can be sold at lesser cost.”Presuming the city grants the Mayo Group’s request and the units are advertised at lower prices but still no buyers arrive, McGrail explained that a back-up plan could include a rent-to-buy program. “We don’t know exactly how that will work, but we’re hoping that having more smaller units will allow us to appeal to a much broader market and it won’t shut out first-time homebuyers,” he said.James Cowdell, executive director of the Lynn Economic Development and Industrial Corp., and former City Council president, said the concept of bringing more residents into the downtown business district is a key part of the city’s master plan.”In general terms, we did a study 2.5 years ago, which showed that in order to have a vibrant downtown, we’ve got to have 500 folks living down there. Right now, we’re halfway there,” he said. “This kind of development, the MV24 Lofts, fits into our vision. I personally went for a tour and Mayo Group did a great job with that building. I support people living in the downtown. It’s good for the local economy.”Cowdell cited the Gulu Gulu Café in Central Square, the Downtown Bistro on Oxford Street, and other area restaurants that are flourishing in part because of the influx of condo dwellers.Two weeks ago, representatives from the Mayo Group met with Cowdell, Ward 5 City Councilor Paula Mackin and Lynn Housing Authority & Neighborhood Development Executive Director Charles Gaeta to discuss the status of MV24 Lofts and the pending request to amend the special permit.”There were concerns raised about parking,” said Mackin. “I believe the Mayo Group has 14 spaces in the back of the building and they own a Central Street lot as well.”A municipal parking lot is within walking distance as well, she said, adding that the Mayo Group hopes the condo buyers will be commuters who use public transportation, available at the nearby train and bus station.”Mayo Group is going to advertise more, but the market has gone stagnant for them,” said Mackin. “If they decide to offer a rent-to-buy program, it might turn out a good thing. People would still be investing.”O’Donnell explained that the rent-to-buy concept would likely attract first-time homebuyers. “These are loft-style u