Cornerstone Realty Capital arranged $17.286 million in financing for its client, True North Capital Partners, LLC, allowing for the acquisition of a multifamily portfolio, consisting of 116 units set on two properties, for a purchase price of $21.25 million. Known as The Avenues, the properties are located at 286-288 Chestnut Hill Ave. in Brighton, and 136-138 Highland Ave. in Somerville. Cornerstone was able to deliver a 7 year loan term at an aggressive fixed rate with a 30 year amortization and included funds for building improvements and an earnout for future income growth.
286-288 Chestnut Hill Ave. consists of 50-units in two attached four-story apartment buildings originally built in the 1920s which have since been renovated and well maintained. The buildings include 14 studios, 8 studio units with alcoves, 26 one-bedroom and 2 two-bedroom units. The property is situated off Commonwealth Ave. adjacent to the MBTA's Green Line Chestnut Hill Ave. Train Station and proximate to Boston College, St. Elizabeth's Medical Center, Franciscan Hospital for Children and Kindred Hospital Boston. This ideal location provides tenants access to transportation, education and employment offerings, as well as retail and dining amenities.
136-138 Highland Ave. contains 66-units in two detached four-story apartment buildings including 32 studio and 34 one-bedroom units. The property is located between Davis Sq., Porter Sq. and Union Sq. affording tenants direct access to a variety of entertainment, retail and dining options. MBTA bus service on Highland Ave. provides access to the MBTA's train service and area employment offerings. The property also stands to benefit from the planned Green Line expansion.
The principals of True North Capital Partners plan to add value to the deal through the implementation of a renovation program designed to improve the well maintained buildings.
Renovations will include updates to the energy and electrical systems, window replacements, new amenities such as a fitness center and bike storage and significant upgrades to the kitchens and bathrooms.
Given the location and condition of each property, as well as the strength of the borrowers, this deal received strong interest from numerous lenders. Jeff Bruce, Principal of True North Capital Partners, LLC said, "The properties are located in A+ rental submarkets with significant value add upside which attracted interest from leading lenders and investors alike. A valued partner of True North, Cornerstone was able to arrange attractive and flexible financing for this deal."
Cornerstone specializes in structuring and sourcing innovative financing for all property types.