South Common Apartments Acquired for $4M
- Apr 07, 2014
Lynn, Mass.—A private investor based in Massachusetts has obtained a $4 million Fannie Mae loan to acquire South Common Apartments, a 72-unit apartment property in Lynn, Mass., a Essex County suburb of Boston. New York-based Centerline Capital Group facilitated the deal.
The borrower is a Massachusetts LLC formed specifically to acquire the property. Terms of the loan are 10-years with a 30-year amortization.
Centerline regional director for the western region Darrell Clark tells MHN that “we’re seeing investors acquire multiple properties in targeted areas they’re familiar with, instead of chasing high cap rates in markets outside their comfort zone.” Overall lending volume for multifamily acquisitions will continue to be strong, he says, since “rates are still low and borrowers understand the stability of multifamily housing in strong submarkets.”
Built in 1900, South Common Apartments is a 72-unit multifamily property, located at 132-138 South Common St. and 1-4 Fosdick Terrace and consisting of four three-story buildings. The property’s buildings are contiguous but separate addresses are noted for each building and entryway. The unit mix includes 12 studios; 35 one-bedroom, one-bathroom apartments; 22 two-bedroom, one-bathroom units; and three three-bedroom, one-bathroom apartments.
According to Centerline, the seller invested about $144,000 in capital improvements over the last six years, including the installation of new roofs for three of the buildings, new hot water systems, common area carpet, common area painting, smoke detector re-wire, boiler replacement and interior renovation of about 13 percent of the units. The property is currently 97 percent occupied.