Boston Boutique Multifamily Community Changes Ownership
- Mar 26, 2019
A 31-unit, Class A luxury boutique multifamily property at 26 West Broadway in South Boston has changed hands for $25 million, or $806,451 per unit.
Boston Realty Advisors identified the buyer as Corcoran Management Co. and released the sales price.
HFF represented the seller, The Cincotta Cos., and procured the buyer. The HFF investment advisory team representing the seller was led by Director Adam Dunn and Managing Director Christopher Phaneuf.
“Continued positive market fundamentals in the South Boston multifamily submarket, combined with a strategic buyer, motivated the seller to capitalize on this opportunistic sale,” Dunn said in a prepared statement.
HFF noted this area of South Boston has been transformed in recent years into a popular area for residential and corporate users.
Cincotta, formerly known as Evergreen Property Group, completed the six-story, 38,242-square-foot building in 2016. The property also includes 4,700 square feet of ground-floor retail space leased to Worden Hall, a popular tavern.
Boston-based Utile, Inc., designed the boutique multifamily property which offers a mix of one-, one-bedroom with office, two-bedroom and penthouse units. High-end finishes included wide-plank hardwood flooring, dimmable LED recessed lighting, and gas ranges. Community amenities include a library, public courtyard, roof deck with views of the city and grilling areas. Residents also have access to a heated sub-grade parking garage.
The property is located across from the MBTA’s Broadway Station, offering subway access to downtown Boston and bus access to the South End and Back Bay. 26 West Broadway is also within walking distance of numerous restaurants, coffee shops and retail offerings, including Whole Foods at the nearby Ink Block development. It is a 15-minute walk to Fort Point, which has seen increased development in recent years.
The Cincotta Cos., a real estate development and investment firm, was created in 2017 to combine several real estate businesses including Evergreen. In addition to residential and mixed-use buildings, the firm also constructs hotels and retail properties, particularly in urban infill sites. In 2017, Cincotta and Utile had teamed and proposed an eight-story, 159-key hotel in South Boston at 248 Dorchester Ave. The property, the site of a former Enterprise Rent-A-Car facility is a five-minute walk from the MTBA Broadway station and 26 West Broadway. The Boston Planning & Development Agency (BPDA) approved the $45 million project in January 2018. The project, which will feature an 87,000-square-foot building with up to 20,000 square feet of public amenities, is expected to be completed by 2020. The hotel will have a rooftop restaurant, lounge, event space and an outdoor deck. On-site parking for 60 vehicles will also be available.
Boston Multifamily Market
Sales velocity of sites for multifamily developments and existing product is very strong throughout the city, where the supply is currently not meeting the demand, according to Boston Realty Advisors. Even though 7,000 Class A luxury multifamily units delivered in 2018, it was not enough to meet the demand.
Marcus & Millichap reports construction will continue to be widespread this year and net absorption of nearly 6,500 units will cut the vacancy to 3.6 percent in 2019, down 30 basis points. The demand will support rent increases of about 4.2 percent to a metro average of approximately $2,380 per month. Rent rose 5.1 percent in 2018, according to Marcus & Millichap’s 2019 Investment Forecast for the Boston metro area.
The report notes Class C properties are projected to lead the transaction velocity this year. Vacancies for the Class C properties have been in the mid-2 percent range, according to Marcus & Millichap.
Image courtesy of HFF