April 8, 2025

SEIU 32BJ alerts investors, and potential investors, of risk resulting from irresponsible conduct by real estate firm Carmel Partners. Carmel, a multi-family residential developer and investor, acts as managing owner of The Sudbury, a luxury building located at 100 Sudbury Street in Downtown Boston. The Carmel Fund XIII holds a controlling stake in a partnership, with the ability to make decisions regarding the building’s management and the selection of service contractors. Under Carmel’s ownership, a labor dispute between the Union and the building management company has also recently drawn the attention of the Boston Globe, which has publicized irresponsible actions by Carmel (link to article).

In July, janitors at The Sudbury were terminated from the union jobs that had provided fair wages, employer-paid family health benefits, and crucial protections. Their Union, SEIU 32BJ, has alleged to the National Labor Relations Board (NLRB) that the property manager, Greystar, unlawfully brought in a contractor that refused to hire the majority of the previous workforce in order to avoid its responsibility to bargain with the Union. The new contractor was chosen through a closed process in which the previous contractor was neither notified nor invited to bid. The Union, community allies, and elected officials have called upon Carmel to use a responsible contractor who will re-hire the displaced cleaners, and have held five public rallies to date. The Sudbury is currently an outlier in the Downtown Boston contract cleaning market, where most cleaners are covered by a collective bargaining agreement between the Maintenance Contractors of New England (MCNE) association and the Union.

This conduct at the property undermines long-term value and increases risk for all stakeholders of The Sudbury, including investors. Responsible contracting leads to lower turnover and greater dedication to the building, meaning better long-term upkeep of the asset. Carmel markets itself as having very strong environmental, social, and governance (ESG) commitments, including this specific language from the Carmel web site:

“…Carmel provides a safe and appealing work environment that strives to support the health and well-being, performance and career development of our employees. …. We value the well-being of employees, residents and communities and continuously work to create more engagement and connectivity with these stakeholders.”

The experience of the terminated workers is not consistent with this stated approach.

Carmel also claims: “Carmel works to improve the cities and neighborhoods in which we operate for the benefit of our residents and local communities.” Despite this claim, Carmel has failed to follow through on a promised conversation with Mayor Michelle Wu, and has ignored further requests to talk by the mayor’s office and SEIU 32BJ. A majority of the Boston City Council has signed a letter to Carmel in support of the laid-off cleaners, and six out of 13 councilors have personally spoken at rallies outside the building. As Carmel continues to acquire property in Boston, such as the building LUKA on the Common, at 45 Stuart Street, this neglect of the community is shortsighted, and not in the best interest of investors who entrust their funds to Carmel.

We strongly encourage investors to contact Carmel at rzeff@carmelpartners.com, and ask them to communicate with SEIU 32BJ to work towards a resolution of this labor dispute to the benefit of all stakeholders.

Thank you. For further information, please contact Kevin Brown, SEIU 32BJ Executive Vice President, at (917) 596-4298 or kbrown@seiu32bj.org.