Chestnut Hill Realty (CHR) has purchased two apartment communities with a combined 581 units in Framingham for $84.5 million.
"While institutional buyers are focusing on downtown Boston acquisitions, CHR sees tremendous value and opportunity in Framingham, which is part of the strong Metrowest office market," said Ed Zuker, founder and CEO of CHR, in a statement. "We are delighted to be expanding our portfolio into this marketplace, and look forward to making Water View one of our signature properties."
Chestnut Hill Realty acquired Grandview Terrace and Grandview Village, and will rebrand and reintroduce them to the market as Water View Apartments at Framingham.
People’s United Bank provided $37 million in financing, while CHR also assumed an existing $27 million Fannie Mae loan as part of the acquisition.
The two apartment communities are located within a half-mile of each other on Route 9 and were constructed between 1968 and 1973. Both properties are close to the Massachusetts Turnpike, Interstate 495 and an MBTA commuter rail station.
"The location of the properties is a major positive," noted Steve Gladstone, CHR’s director of acquisitions, in a statement. "The Metro West is one of the area’s strongest submarkets. With high barriers to entry in Framingham and the surrounding communities, we are anticipating significant apartment demand in this area for the foreseeable future."
Water View Terrace is situated on 4.25 acres overlooking the Foss Reservoir. It consists of two six-story apartment buildings containing 300 units, including a mix of studio, one- and two-bedroom units with an average size of 944 square feet.
Water View Village, situated on an 8.46-acre parcel also overlooking the Foss Reservoir, consists of four six-story buildings with brick exteriors. Also featuring a mix of studio, one- and two-bedroom units, the 281 apartments at The Village have an average size of 878 square feet. An adjacent parcel contains a single-story, 7,490-square-foot plaza with six retail suites.
CHR plans an extensive capital improvement campaign and anticipates spending several million dollars to improve the buildings’ curb appeal and infrastructure.
