137-Unit Suburban Boston Apartment Trades for Reported $40M
By Barbra Murray, Contributing Editor
Wellington Place, a 137-unit apartment property in Medford, Mass., has come under new ownership. With the assistance of CB Richard Ellis–N.E. Partners L.P., Northwestern Mutual sold the Class A property to MIREF Wellington L.L.C.
The word isn’t officially out on the sales price, but various news outlets have reported that Wellington Place traded for $40 million.
Developed in 2006, the rental community occupies nearly six acres just four miles outside of downtown Boston. The property encompasses three four-story residential structures, a single-story clubhouse and two detached, single-story structures serving as parking facilities.
Snapping up apartment assets in metropolitan Boston is not a bad move, considering demand for rentals is relatively high. The area’s vacancy rate of 3.6 percent, a 10-year local low, outshines the national figure of 4.7 percent, as noted in a second quarter report by Marcus & Millichap Real Estate Investment Services. Indeed, demand is outweighing supply-side pressures, making the timing for acquiring apartment properties in the market just right.
“Stringent lending standards for single-family homes as well as a sharp increase in employment will support demand for units in the near term,” according to the report, which also notes that sales are thriving and will continue do so.
Recent transactions illustrate investors’ interest in the market. Last month CBRE-NE orchestrated Pembroke Real Estate’s disposition of the 550-unit Oak Grove Village in the Melrose area for a reported $188 million, or approximately $342 per square-foot.