BLVD Capital Buys Massachusetts Property for $76M
- Jul 02, 2020
Affordable housing specialist BLVD Capital has acquired Pynchon Terrace and Edgewater Apartments, a 612-unit community that spans five city blocks in downtown Springfield, Mass., for $76 million. The seller was Silver Street Development Corp., which acquired the asset in 2005 for $46.7 million, according to Yardi Matrix.
CBRE brokered the sale, which was subject to a $34 million phase I loan and a $29.6 million phase II loan, both held by Freddie Mac. Located at 101 Lowell St., the property occupies 25 acres along the Connecticut River. Eighty-one percent of the apartments in each phase enjoy a long-term Section 8 Housing Assistance Payments (HAP) contract.
Originally built in 1971, Pynchon Terrace consists of 250 apartments across 32 townhouse buildings rising two to three stories. The property is made up entirely of three- and four-bedroom townhomes, with 200 of the apartments benefiting from a Section 8 HAP agreement.
Edgewater Apartments has 362 apartment homes in 13 townhouse buildings of two to three stories, built in 1972, and one 10-story high-rise, constructed in 1975. The high-rise contains one- and two-bedroom apartments with one living level. Section 8 HAP contracts apply to 293 of the units in Edgewater Apartments.
Amenities of the property include a community room, computer learning center and off-street parking, along with supportive services. The community is located a few minutes away from Interstate 95, amid an urban neighborhood of single-family homes, with schools, parks and retail options nearby. Residents also have access to a 4-mile Riverwalk and Bikeway.
Both phases last underwent a complete Low-Income Housing Tax Credit (LIHTC) renovation program in 2006. BLVD plans to make significant investments in the properties while preserving their affordability over the long term. BLVD, which has a portfolio of 6,000 units throughout 17 states, purchased two affordable housing communities totaling 312 units in and around Chicago for $26 million in 2018.
Simon Butler, Biria St. John and John McLaughlin of the CBRE Capital Markets team, alongside the CBRE Affordable Housing Team lead by Jeff Kunitz and Mike Canori, exclusively represented the seller and procured the buyer in the Springfield deal.