Pennant Buys, Preserves Affordability of Boston Senior Community
- Mar 18, 2020
Pennant Housing Group has purchased Colonial Village Apartments, an affordable, 89-unit senior community in Weymouth, Mass. According to Yardi Matrix data, Belveron Partners sold the Class C, independent living property for $10 million.
MassHousing, in partnership with Greystone, provided the buyer with a $9.9 million acquisition and construction loan. The deal also maintains the property’s affordability for at least 15 more years.
Developed in 1971 through the Section 13A program, the six- and seven-story building at 109 Broad St. comprises one- and two-bedroom apartments averaging 561 square feet. Nine of them are reserved for households earning at or below 30 percent of the area’s median income, while 79 cater to households earning at or below 60 percent of the area’s median income. In addition, 23 of the units will be supported by a Massachusetts Rental Voucher Program rental subsidy contract.
The new owner will implement capital improvements at Colonial Village, including kitchen and bathroom renovation, safety systems upgrades and water infiltration repairs. NEI General Contracting is the general contractor and Kaas Wilson Architects is serving as the project architect, with Arco Multifamily Management as manager.
The 1.3-acre property is some 17 miles south of downtown Boston via Interstate 93 and one mile west of city center. There are several shops and restaurants surrounding the community and Tufts Library is within walking distance.
MassHousing, together with The Massachusetts Department of Housing and Community Development, provided a mix of funds that resolve the expired Section 13A rental subsidy at the property.
The financing package provided by the agency includes $9.9 million in tax exempt bonds from the Conduit Loan Program and $945,361 in Section 13A tenant protection funds, also generating $3.7 million in federal Low-Income Housing Tax Credit equity. DHCD awarded $6.3 million in capital improvement financing.
In July, MassHousing provided $49.3 million in affordable financing to WinnCos. After the acquisition of a 284-unit community in Peabody, Mass., the company used the proceeds for property rehabilitation and affordability preservation for at least 45 years.