Henderson Global Acquires Boston M-F Community for $48M
- Dec 10, 2008
On behalf of its value-add CASA Partners IV fund, Henderson Global Investors, an independent investment manager, has acquired Reading Commons, a 204-unit multi-family complex located 10 miles outside Boston, for $48.5 million. The property marks the fund’s first luxury acquisition in the Northeast.The community was originally developed by Archstone Properties and completed in 2006. “This acquisition is a result of our belief in the long term growth and stability of the Boston apartment market, the excellent product developed by Archstone and changing credit market conditions that provided Henderson the opportunity to acquire a tax-exempt bond financed property, consistent with our CASA strategy, at very attractive pricing that has not been available for the past several years,” James Martha, managing director property, North America at Henderson Global, said in a release. “We were able to acquire this extremely stable property with 97 percent occupancy, making it a truly strategic long-term growth opportunity for the portfolio.”Corcoran Management Co., a Boston-based owner-operator-developer of apartment communities in the New England area, will manage the property’s day-to-day operations. The buy marks the third property acquired by CASA IV in 2008, with nine properties in total. Having raised $205 million in equity from institutional investors, including four U.S. pension funds and one corporate pension plan, the purchase of Reading Commons is part of the continued plan to acquire strategic properties during the next few months. In anticipation of CASA IV’s final capital investments next year, Henderson Global Investors plans to launch the next fund in the CASA Series, CASA V, in 2009.