By Dees Stribling, Contributing Editor
Andover, Mass.—Mack-Cali Realty Corp. has acquired Andover Place at 650 Bulfinch Dr. in Andover, Mass., which is in Essex County, north of Boston. The New Jersey-based REIT paid about $37.7 million for the 220-unit multifamily property.
The sellers were AEW Capital Management and Corcoran. The property includes studio, one-, two-, and three-bedroom units, as well as three-bedroom duplexes, and it’s currently 94 percent occupied.
Andover Place, which is located on 30 acres of landscaped grounds about a mile from I-95, features a clubhouse with a fitness center, a swimming pool with sundeck and barbecue area, and parking. Mack-Cali’s Roseland subsidiary will manage and lease the property.
The new owner plans various upgrades to the property, including revamped kitchens and bathrooms, the addition of en-suite washer/dryer units, and a refurbished pool deck. The upgrades, according to Mack-Cali, will generate value-added returns.
As a hub of tech activity and other economic growth, greater Boston remains popular among multifamily investors, though properties inside Route 128 are more in demand than those outside of it. According to investment specialist Marcus & Millichap, metro Boston will add 40,200 workers to payrolls this year, up 1.6 percent; in 2013, the increase 32,800. Even so, supply is beginning to outpace demand for apartments, and the metro vacancy will tick up 50 basis points to 4.2 percent by the end of this year.