Cousins' capital idea to invest in Boston and New York state

INVESTING IN US:Two cousins, one in Dublin, the other in Boston, have gone into business together to offer US properties to Irish investors

WITH THE Irish market at a virtual standstill and Nama the only show in town, a Dubliner, a Bostonian and an Irish-American in Rochester, New York, aim to direct Irish investment money into residential and commercial real estate in the US, where the economic gloom seems to be lifting.

ClearSky Capital was established in 2008 by Dubliner Ciarán Hynes, his cousin Todd Fessenden of Boston and Rochester-based property consultant Sean O’Brien, who has Limerick roots.

Ciarán and Todd met in 1984 when the American branch of the family came over to meet their Irish relatives. Todd, a Massachusetts real estate agent, is operations director and Ciarán is managing director.

Their company sources high-yield properties, both commercial and residential, and offers full management of assets through to disposal.

Products range from tenanted office blocks and shopping malls to restored period houses and waterfront sites.

Net returns of over 7 per cent are promised and financing can be arranged. “There is tremendous value in the US and, with offices in both countries, we can serve investors well. Yields are the best that I’ve seen in a stable economy anywhere in the world,” says managing director Ciarán Hynes. Two locations, Boston, Massachusetts and Rochester, New York, were selected for their steady property markets, blue chip industries and ready supply of tenants.

Last week’s SP Case-Shiller indexes for the Boston area reported a 2.6 per cent increase in house sales in June, raising hopes that the end of the slump is in sight.

Boston’s vibrant cultural scene and world-class universities and hospitals has led to its ranking by Grubb Ellis Co as one of the top 10 cities in the US for commercial property investments. Direct Aer Lingus flights to Boston are an incentive for Irish buyers.

New York may be a mecca for Irish shoppers, but Boston wins hands-down for its laid-back atmosphere and friendly citizens. (Red Sox games at Fenway Park book out for the entire season when tickets go on sale and anyone lucky enough to bag a spare seat can look forward to a circus atmosphere and an unforgettable experience.)

Hollywood East, a new sound stage and studio currently under construction half an hour from Boston, is expected to boost the local economy.

Everyone’s filming in Boston now and production Winnebagos are a familiar sight around the streets of Back Bay. Films with a Boston backdrop include Mystic River, The Perfect Storm, Good Will Hunting and The Proposal.

ClearSky has a number of properties in the Boston area, including an office building in Shrewsbury, offering a return of 11.69 per cent and a newly-opened Korean food market in Burlington promising a 7.89 per cent return.

A restored 1900s house in Gloucester, Massachusetts priced at $299,000 (€204,026) will net 6.65 per cent and another house in Boston city centre for $599,000 (€408,453) offers a 7.2 per cent return on investment.

Less familiar to Irish investors, the city of Rochester straddles the Erie Canal and Genesee River on the banks of Lake Ontario in western New York state, an hour’s commute from Kennedy airport.

The city is known for its quality of life and family orientation, with two major universities and a world-known music college. Local industries include giants such as Kodak, Bausch Lomb and Zerox. Kodak founder George Eastman lived here and the museum in his memory is a popular tourist attraction.

Rochester house prices have bucked the nationwide trend, with modest price growth reported this year by Money Magazine in the US. With family houses in good suburbs selling for around $300,000 (€204,535), this is hardly surprising.

On ClearSky’s books here are city centre office buildings netting a 9 per cent return which would suit a syndicate or pension fund.

A magnificent period house at Culver Road, Rochester priced at $350,000 (€238,624) can produce a gross annual income of $42,000 (€28,635). After operating expenses, the net income is listed as $24,840 (€16,934). The company’s most ambitious project in Rochester is a sought-after lakeshore site with plans for 20 duplex townhouses. This is in the suburb of Irondequoit, a conservation area. Shares at $100,000 (€68,172) each are guaranteed an 80 per cent return over 30 months, through a legal pledge.

ClearSky Capital will host seminars in Waterford, Cork Limerick, Galway and Dublin from October 6th to 8th.

www.clearskycapital.com or

01 978 921 1066