Worcester Business Journal

wbjournal.com | December 25, 2023 | Worcester Business Journal 15 Committed to the success of your business Established in 1989, Bollus Lynch has grown to become one of the area's leading accounting, auditing and consulting firms. While we've expanded our depth and capabilities, the firm has remained steadfast in its deep commitment to the Central Massachusetts community and our growing list of valued clients. 89 Shrewsbury St. Suite 200 • Worcester, MA 01604 508-755-7107 • www.bolluslynch.com BOLLUS LYNCH CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS An Independent Member of the BDO Alliance USA with adjustments and in an incremental way, progressively making the policy stronger as conditions merit," Rose said at the meeting, "I believe it impossible to go backwards if we overshoot the restric- tions at the outset." More than a dozen Cumberland Farms properties sold for $73M California-based real estate investment firm Realty Income Corp. has begun acquiring Cumberland Farms locations throughout Central Massachusetts as part of a $1.5-billion sale-leaseback deal with United Kingdom-based EG Group, the parent company of Cumberland Farms of Westborough. As part of its plan to buy 116 conve- nience store properties in Massachu- setts, Realty Income began closing the property deals in Central Massachusetts in May. As of May 23 aernoon, the company had purchased 14 Cumberland Farms properties for a total of $72.7 million in Athol, Auburn, Brookfield, Graon, Hardwick, Lancaster, Leicester, Northborough, Pepperell, Southborough, Sturbridge, Templeton, and Westminster. Worcester City Council approves less-restrictive inclusionary zoning e Worcester City Council approved the city manager's recommended inclu- sionary zoning plan aer voting down the Standing Committee on Economic Development's proposed plan at the April 12 council meeting. e plan, which was voted for unan- imously aer an initial failing 7-4 vote, will require developers to set aside 15% of units for households with an income less than 80% of area median income (AMI) or 10% of units available to house- holds making less than 60% AMI. Housing advocates showed up to the meeting in support of the Economic Development Committee-approved plan, which passed that committee by a vote of 2-1 with Committee Chair and District 1 City Councilor Sean Rose voting against the plan. e Worcester Planning Board unanimously supported that plan. It featured amendments proposed by the Worcester Together Affordable Housing Coalition, which dictated that 10% of units in a development with more than 12 units be set aside for income-restrict- ed households, half of which would be required to be affordable for households making less than 60% of AMI. It dictated the units be affordable in perpetuity, rather than the 30 years recommended in the City Manager's plan. Rose spoke up in favor of the city manager's plan because he said the more aggressive option would dissuade devel- opers from investing in Worcester, citing an example from Virginia consulting firm RKG Associates, Inc. Rose said he was warned of an in- creased risk profile in renting to people with lower incomes and the potential for lower property values. "I believe that the best way to imple- ment this IZ ordinance is to go forward W In a sale-leaseback deal, the buyer gen- erally acquires the property and leases the property to the previous owner, who is operating a business at the location. In this case EG Group will continue to op- erate the Cumberland Farms locations. Realty Income announced in a March 6 press release it signed an agreement to acquire up to 415 single-tenant conve- nience store properties. e company anticipates that more than 80% of the to- tal portfolio annualized contractual rent will be generated by properties operated under the Cumberland Farms brand. Of the 415 properties, 116 are expected to be in Massachusetts. Properties in the portfolio have a 20- year weighted initial lease term. "Our core investment philosophy is to partner with leading operators in industries that have demonstrated an ability to deliver favorable risk-adjust- ed returns over the long term," Realty Income President & CEO Sumit Roy said in the press release. "We believe this portfolio includes brands that are among the most recognizable convenience store brands on the East Coast, and the con- venience store industry has long been a well-performing staple in our real estate portfolio." The now closed Bed Bath & Beyond in Hudson PHOTO | TIMOTHY DOYLE

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