Harbor Group International sold a portfolio of six affordable and workforce housing properties to Bridge Investment Group Holdings.
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The investment firm sold the portfolio to Bridge for $460M, according to a source close to the deal. The portfolio consists of 1,722 units in five Greater Boston towns and marks Bridge’s entrance to the Boston area.
“The acquisition expands our Workforce & Affordable Housing geography into another attractive major market,” Bridge Chief Investment Officer Rachel Diller said in a statement. “The portfolio consists of well-located assets within four high-barrier-to-entry counties in the Greater Boston area, offering convenient access to major transportation arteries.”
HGI acquired the portfolio in 2019 for $384M. Since then, the firm made $13.6M in capital improvements including upgrading property amenities and renovating the units.
The properties in the portfolio are Commons at Haynes Farm in Shrewsbury, Middlesex Crossing in Billerica, Meadows at Marlborough and Heights at Marlborough in Marlborough, Stone Ends in Stoughton and Village at Marshfield in Marshfield.
Last year, Bridge closed on its Bridge Workforce and Affordable Housing Fund II, raising over $1.7B, nearly triple the size of its first fund, PERE reported. The firm had approximately $49B of assets under management as of June 30.
SALES
Thomas Park Investments acquired a 125K SF medical campus in Southborough. The property is located at 24-32 Newton St. and is anchored by Reliant Medical Group, UMass Memorial and Walgreens, according to a press release. The deal includes a main building and an outpatient auxiliary annex.
The new owner plans to make renovations to modernize the complex. Thomas Park Investments also renegotiated a 97K SF lease extension with Reliant Medical Group. JLL's Brannan Knott and Mindy Berman represented the buyer. The seller was not listed.
LEASES
Restaurant tech company Toast plans to move into roughly 102K SF at 333 Summer St., which it subleased from the GoTo Group. The company plans to move into the space at the beginning of next year, and it has agreed to pay $17M over the sublease term ending June 30, 2028. The move comes after Toast revealed it was terminating its 130K SF lease at Alexandria Real Estate Equities and Samuels & Associates' 401 Park Drive.
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Astellas Pharma signed a 62K SF lease at 441 Morgan Ave. in Cambridge Crossing. The Japanese pharmaceutical company will take up two floors in the 10-story building developed by DivcoWest and expects to move into the facility next year. The lease is one of the largest life sciences leases signed in the region this year, the Boston Business Journal reported.
FINANCING
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MassHousing provided the Affordable Housing and Services Collaboration Inc. with $12.9M in financing for its 106-unit Bixby Brockton Apartments complex. The financing will help extend affordable rents and make $800K in improvements to the property. The apartments are in the four-story Brockton Centre building and the seven-story Bixby building at 103 and 106 Main St. There are 88 one-bedroom and 18 two-bedroom units in the apartment complex.
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Boston Mayor Michelle Wu launched a grant program that will support energy retrofits and decarbonization efforts for affordable housing buildings. Owners of these buildings will be able to apply for grants of up to $10K toward a comprehensive energy assessment, which will allow owners to assess building performance and work toward strategies for carbon emission reduction.
The city plans to have the assessments completed and funds disbursed within three to six months. The Mayor's Office of Housing received 20 applications totaling 56 buildings and 2,078 units. All 20 applicants will be awarded grants. The financing is supported through American Rescue Plan Act funding.
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