BXP Sells Downtown Boston Residential Building For $55M: The Boston Deal Sheet
BXP has sold an apartment building in downtown Boston as part of its disposition strategy.
The office REIT sold The Lofts at Atlantic Wharf, comprising 86 units, to an entity linked to AEW Capital Management, according to a Feb. 26 deed record. The property at 530 Atlantic Ave. is 100% leased, according to a LinkedIn post.
Newmark represented BXP.
"This closing is yet another indication of strong institutional demand for high quality multifamily assets in Boston," Newmark Executive Managing Director Thomas Greeley wrote on LinkedIn. "The Lofts' sale is also a validating trade for well executed, thoughtful office conversions and their ultimate liquidity."
The property includes almost 13K SF of retail that is home to Italian restaurant Nebo and Mediterranean restaurant Trade.
The apartment building is part of a mixed-use project known as Russia Wharf, an adaptive reuse project completed in 2011.
The deal is the latest in a string of sales BXP has executed to shore up capital for new development, including the 930K SF 343 Madison Ave. in New York City.
In December, the REIT sold a 280-unit apartment complex in Cambridge to Pembroke for $170M. That same month, BXP sold a 409K SF office campus in Needham for $132M.
SALES
Wingate acquired the 59-unit Residences at Pleasant Bay in Brewster for an undisclosed amount, according to a press release. The owner plans to partner with a designer to revitalize the property.
The property includes a wellness center, an on-site bistro and a saltwater lap pool.
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Boston investment firms Eastern Real Estate and Taurus Investment Holdings acquired a 303-unit Revere Beach apartment portfolio for $45M following an auction, the Boston Business Journal reported. The firms secured a $29M mortgage from the Bank of New England for the three-building property known as Water's Edge.
Two of the three properties on the site are vacant due to a fire and violations of fire and safety codes.
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An entity linked to LaSalle Investment Management acquired a medical office building at 485 Arsenal St. for $32M, according to a Feb. 27 deed record. The seller was Boylston Properties.
Atrius Health and Harvard Vanguard Medical Associates are tenants in the building.
LEASES
Workbar will open its 12th Greater Boston coworking space at 50 Church St. in Harvard Square, the BBJ reported. The 10K SF location will be in the same building as The Sinclair music venue and Harvard's Derek Bok Center for Teaching and Learning.
Trinity Property Management is the property owner and plans to invest in the building's lobby, facade and other renovations.
FINANCING
Preservation of Affordable Housing and Housing Assistance secured roughly $40M in financing for its affordable housing community in Brewster. The firm secured the financing through multiple sources, including Rockland Trust, Massachusetts' Executive Office of Housing and Livable Communities, and community preservation committee funds from six surrounding Cape Cod towns.
The funding will support the development of 45 units across seven buildings at 55 Spring Rock Village.
PERSONNEL
Dan Karp joined Marcus & Millichap's Boston office as associate director. Karp will focus on expanding the firm's investment sales platform throughout New England. Karp will work alongside Harrison Klein.
Prior to joining Marcus & Millichap, Karp held senior roles at KEW Management Group, Northmarq and CBRE.
CONSTRUCTION AND DEVELOPMENT
Nordblom Development Co. proposed to redevelop a parking lot at 26 Pleasant St. in Brookline into 103 apartments. The project would also set aside 15% of the units as affordable and include 60 parking spaces for residents.
On-site amenities would include a fitness center, a package and mail room, a community lounge and work-from-home offices. The project would need to go through approval from Brookline's town meeting process before it can begin construction.
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Atlanta-based Wood Partners filed plans to build a 288-unit apartment building near Doherty Memorial High School in Worcester, MassLive reported. The apartment building would be at 1-3 Suburban Road and would consist of six four-story buildings with 48 units in each.
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The city of Somerville issued a request for proposals for a 4-acre site at 90 Washington St. near its East Somerville MBTA Green Line station. The city is looking for a developer to engage in a mixed-use project on the site, including housing, ground-floor retail and public open space.
The Somerville Redevelopment Authority purchased the site for $8.8M in 2019. Proposals are due April 10, and a final development partner will be selected by July 13.
