Cornerstone Realty Capital arranges $30.05 million in financings

Spring Hill Apartments, 151-153, 155-157 & 163 Summer Street - Somerville, MA

Somerville, MA Cornerstone Realty Capital arranged $23.25 million in financing for its client, Alpha Management, allowing for the acquisition of Spring Hill Apartments in Somerville. Located at 151-153, 155-157 & 163 Summer St., the three buildings contain a mix of nine studio, 75 one-bedroom, 14 two-bedroom, 7 three-bedroom, and one four-bedroom apartments. All units will be renovated by adding granite countertops, refinishing the hardwood floors, and updating kitchens and baths. The buildings are top quality for the neighborhood and have the potential to be some of the finest apartments offered in Somerville.

President of Cornerstone, Paul Natalizio, said, “The strength and location of the asset was the defining factor in arranging the financing. The favorable expectations for the area, as well as, the experience of the borrower generated significant interest from local and regional lenders.”

The Spring Hill neighborhood is centrally located between Union and Porter Sq. The property has access to all of Boston via the widely available bus routes offered by the MBTA.

In addition, the Porter Sq. Red line T stop is located less than 1 mile from the property. When the extension of the Green line comes to fruition, the Gilman Sq. T stop will be about 0.5 miles from the property. Somerville is located proximate to some of the best universities in the world, and as a result, has become one of the nation’s bio-tech and technology hot spots. The area has adapted to the influx of young professionals and is home to many of the region’s most trendy restaurants, entertainment options, and shopping destinations.

Cornerstone was able to deliver a 15 year loan term at an aggressive fixed rate.

Esquire Apartments, 13 Sabino Farm Road - Peabody, MA

Also, Cornerstone arranged a total of $10.8 million in financing for its client, Brickpoint Properties, allowing for the acquisition and renovation of Esquire Apartments. Located at 13 Sabino Farm Rd., Peabody, Mass., the 11 brick building complex has a total of 102 units, 17 one-bedroom and 85 two-bedroom apartments.

Post-acquisition, the owner will renovate common areas and hallways, in addition to the units. Unit upgrades will include–updated bathrooms, new countertops, appliances, floors in the kitchen, new carpet in the living areas, and updated electrical.

Peabody is a densely populated city located 17 miles north of Boston. Esquire Apartments is located under half a mile from Rte. 128, which links commuters to Boston and the city’s major employment centers.

Peabody is home to the North Shore Mall, the largest mall in the Boston MSA, the Centennial Industrial Park, which is a 2 million square foot office park, and The Lahey Clinic, a world-class health-care facility. Several other corporations, including Analogic, Christian Brooks, Summa Inc., Cardinal Health, and a full service Marriot Hotel can also be found in the neighborhood.

Paul Natalizio, President of Cornerstone, commented that, “The Borrower acquired the property at a tremendous value given the fact that the deal was off-market. The asset is in a great location and will be a terrific addition to the Borrower’s portfolio.”

Cornerstone was able to deliver a 10 year fixed rate loan at an aggressive rate with a 30 year amortization and a period of interest only.

Cornerstone specializes in structuring and sourcing innovative financing for all property types.