PCCP Provides $98M Loan for Construction of 269-Unit M-F/ Retail Property in Suburban Boston
- May 28, 2014
PCCP L.L.C. has emerged victorious in the bid to furnish Northland Investment Corp. with financing for the construction of Moody & Main, a new mixed-use multi-family property just outside of Boston, in Waltham, Mass. With a $98 million loan in place, Northland remains on schedule to deliver Moody & Main’s 269 apartment residences and 27,600 square feet of retail in mid-2016.
The lending community is still more than a little keen on the apartment sector. “The financing market for new construction is increasingly competitive, especially for strong borrowers like Northland,” John Randall, senior vice president with PCCP, told Commercial Property Executive. “We won this deal by providing the entire debt capital stack. We are very focused on the exit metrics especially in a market like Boston where the return yields are low on new construction because cap rates are so tight.”
Moody & Main, which takes its name from its location at the intersection of Moody and Main streets in downtown Waltham, will feature three-five-story structures offering 242 market-rate units, as well as 27 affordable residences.
“Building an affordable housing component is fairly typical these days so we are comfortable with underwriting and financing this portion,” Randall said. The 4.5-acre property will also feature below- and at-grade parking to accommodate 392 vehicles. However, one of the Moody & Main’s most notable features is its close proximity to public transit; the development will sprout up just one block from an MBTA commuter rail station and bus stop.
Whether residents commute via car or rail, the demand for Class A apartment accommodations in Waltham is strong.
“Waltham is an ‘inside Route 128’, dense suburb with excellent transportation linkages to Boston and a sizable office submarket of its own,” Randall added. “It also houses two major universities, Brandeis and Bentley. Target occupants include renters by choice looking for a high-quality, brand-new rental who want regional access but enjoy the walkability of the location.”
Northland is presently in the demolition phase at the property, which had been home to four mostly vacant office buildings, and expects to welcome its first residents in summer 2015.