Boston-Area Community Trades for $65M

NPRC invested $13 million in Union Place, a 300-unit property located near Boston.
Union Place, Franklin, Mass.

Union Place (above) is a 300-unit apartment community in Franklin, Mass.

Boston—Prospect Capital Corp. recently announced that National Property REIT Corp. (NPRC), Prospect’s portfolio company, has partnered with Jones Street Investment Partners for the acquisition of Union Place, a 300-unit multifamily property in Franklin, Mass. The asset was sold by Berkshire Property Advisors for a price tag of roughly $64.8 million. The property last changed hands in April 2012 for $48.7 million.

Jones Street invested 15 percent of the junior capital, while NPRC provided $13 million as the remaining 85 percent. Jones Street will also act as property manager. According to Yardi Matrix data, the sale was subject to a $51.8 million Fannie Mae loan originated by Berkeley Point Capital. The joint venture is planning on implementing a value-add investment program which will include in-unit upgrades.

Located at 10 Independence Way, the garden-style Union Place was completed in 2006 and offers 114 one-bedroom and 186 two-bedroom units ranging from 721 to 1,031 square feet. The community encompasses nine buildings over nearly 32 acres and features amenities including a fitness center, clubhouse, swimming pool, 600 grade-level parking spots, dual-pane glass, as well as washer/driers and microwave ovens in all units. Yardi Matrix data also shows that the property is 96.7 percent occupied with an average 2016 monthly rental rate of $1,729.

“The Union Place acquisition continues NPRC’s strategy of selectively acquiring real estate assets in conjunction with established property managers, where the assets benefit from a highly diverse tenant base, stabilized cash flow and discount to replacement cost in markets with limited new construction pipelines and positive demographic and economic trends,” said Ted Fowler, managing director of Prospect Capital Management, in prepared remarks.

Image courtesy of Yardi Matrix