Saugus, MA Cornerstone Realty Capital recently arranged $8,100,000 for the refinance of Pennybrook Gardens, a 43-unit apartment property.
Pennybrook Gardens sits on a 2.689 acres and consists of six two-story apartment buildings that contain a total of 43 residential units. The property is comprised of a mix of one-bedroom/one-bathroom, two-bedroom/one-bathroom, and three-bedroom/one and a half bathroom units. The three-bedroom units are townhouse style and are all contained in one building. The property has historically experienced strong occupancy levels and operating results.
The buildings were originally constructed in 1967 and have been in the process of renovation since the current owner acquired the property in 2020. The buildings are wood framed with a mix of brick veneer and vinyl siding and contain asphalt shingled roofs. The townhouse units were fully renovated with updated kitchens, baths, lighting, new hardwood flooring and replacement windows. The majority of remaining units have also been renovated with a mix of vinyl and tile flooring throughout, white appliance packages with hardwood shaker cabinets in the kitchens, and tile floor with a tile surround shower. There is a laundry room with coin-operated washers and dryers in each building for the tenants’ convenience. The property features an asphalt parking lot that contains approximately 86 parking spaces.
The subject property is located in the Boston suburbs. The immediate area surrounding the subject property consists primarily of residential with commercial and municipal along Rte 1. Rte. 1 contains a variety of neighborhood and community shopping centers, free-standing retail, strip shopping centers, gas stations, restaurants and car dealerships. The largest retail development in the area is the Square One Mall located at 1201 Broadway, west of the subject property. The Square One Mall represents a 940,000 s/f enclosed, two-level shopping mall that is anchored by Best Buy, Macy’s, Sears and T.J. Maxx. Additionally, public transit is within a short distance from the property, 0.1 mile away down Vine St., at a MBTA bus stop for the #429 and #430 bus routes that both provide service throughout Saugus, Lynn, and Malden with the #430 culminating at the Malden Center subway station on the orange line as well as the Haverhill commuter rail line.
Andrew Saccone, executive vice president at Cornerstone, said, “The property bolstered by the high standard of the completed renovations carried out by the borrower stimulated a competitive lending environment. This allowed Cornerstone the ability to secure exceptional loan terms for our client, including an extended period of interest only with a low fixed rate.”