Danvers, MA The Mega Group has completed the sale of two separate apartment portfolio transactions. The first was an 89-unit deal in Lynn known as the Diamond District Portfolio. The second was a 10-unit deal in Salem known as the Castle Hill Portfolio at Historic Salem. The Mega Group represented the sellers and procured the buyers in both portfolio deals.

The Diamond District Portfolio were three contiguous brick apartment buildings on four parcels of land overlooking Kings Beach in Lynn, one block from Lynn Shore Dr. The deal flowed into the Mega Group’s then Boston North Investment Team by way of an existing investor client that has regular business interests with the firm. The transaction went on record for $16.25 million in total on two deeds, the first from R&J Realty Co. for 25-units at 66 Basset St. and 40-units at 135 Ocean St.; the second from L&M Realty Co for 24-units at 131 Ocean St. and a large parking lot at 131R Ocean St. rounding out the four parcels. The entire package of 89-units went to Diamond District Properties in an off-market deal. Brian DApice of the Mega Group said, “The portfolio of apartments were appealing to the investor because it was a bona fide value-add opportunity. At the time of closing the scheduled gross income compounded with an operating expense that includes market lender assumed variables revealed a CAP Rate of 5.2%, but we as a brokerage predict a $400,000 increase to the bottom line with minimal improvements that should bring the stabilized value to around a 7.4% CAP.”

The Castle Hill Portfolio at Historic Salem were three turn of the century wood-framed apartment assets consisting of ten total units that are located in one of the more desirable areas of the community, situated right in front of Olde Salem Greens Golf Club and between Salem Hospital and Salem State University. This transaction would finally be the last for The Mega Group’s Boston North investment Team and DApice of the firm said, “The buyers, a Massachusetts limited liability corporation, came to me through a friend Matthew Blanchard of Academy Mortgage who ironically is in my close referral network of like-professionals in the market. The LLC was a joint-venture between Seabrook RE Partners and Lakeland Capital managed by Vincent MacNutt, CPA & Alexandre Westra respectively, and I look forward to offering the team of investors more opportunities in the future.”

The 10-unit investment portfolio sold for $2.55 million and roughly a 7.3% CAP Rate.