Jefferson Apartment Group Sells Suburban Boston Community for $104M
The 262-unit community was acquired by a Salt Lake City-based REIT.
Jefferson Apartment Group has made the first sale of its Income Fund through Jefferson One Upland. The multifamily developer, alongside its joint venture partner KKR, sold the suburban Boston community for $103.6 million to Utah-based Cottonwood Residential.
Jefferson One Upland is located 16 miles away from downtown Boston at 8 Upland Woods Circle in Norwood, Mass. The 262-unit community has one-, two- and three-bed units and its amenities include a clubhouse, pool, lawn with fireplace, movie amphitheater, dog parks and wooded trails. Jefferson One Upland was built in 2016 by Campanelli and Thorndike Development and purchased in 2017 by a joint venture of JAG and KKR.
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JAG decided to sell Jefferson One Upland as the property was well-positioned in a strong suburban submarket. In addition to that, the company had mostly completed the renovation work of upgrading the amenities, lighting and flooring, JAG told Multi-Housing News. Jefferson One Upland also represents JAG’s first sale in its Income Fund, which was created as the company’s first foray into private, small, high net-worth offerings used to invest in rental apartments with institutional investors.
Elsewhere in Massachusetts, JAG also partnered with LaSalle Investment Management for a joint venture to purchase a 298-unit community in Boston. The joint venture paid $165.3 million to Equity Residential for CityView at Longwood Apartments in July 2019.
Boston’s residential market had a strong showing in 2019 and ended the year with another round of economic growth, according to Yardi Matrix’s fall 2019 report for the city. The Boston rental market saw rents increase 3.9 percent year-over-year through October, hitting an average rent of $2,311. Boston’s market also saw an increase of 50,200 jobs in the last 12 months ending in September and had 24,645 units under construction as of October that were mostly geared towards renters.