Photo courtesy of JLL

With approvals in hand for a conversion to 88 apartments, a Boston-based developer acquired a Danvers hotel for $13.5 million.

Torrington Properties plans to continue operating the Residence Inn at 51 Newbury St. in the short term, according to JLL which represented seller PEG Companies Inc. of Provo, Utah.

Danvers officials approved the conversion this month. The property was sold with existing brand and management agreements, giving Torrington the option to continue operating the property as a hotel in a market with limited new supply. No new hotels have been completed on the North Shore in the past decade, according to JLL.

“The North Shore continues to benefit from its position as a high-barrier suburban alternative to Boston, with strong fundamentals supporting both hospitality and residential demand,” JLL Managing Director Alan Suzuki said in a statement. “Torrington recognized the value in acquiring an income-producing hotel asset with a de-risked pathway to capitalize on severe housing supply constraints and robust rental demand in one of Greater Boston’s most connected suburban markets.”

Completed in 1989, the hotel is located on a 4.1-acre parcel near the junction of Interstate 95, Route 1 and Route 128. It contains apartment-style suites with kitchens.

The property previously traded for $14.1 million in 2018, according to data compiled by The Warren Group, publisher of Banker & Tradesman.