North Providence, RI Marcus & Millichap completed the sale of 139-143 Hollis St., a 22-unit apartment building located in Framingham, Mass., and 1484 Mineral Springs Ave., a single tenant net leased Dunkin Donuts located in North Providence. The assets sold for $2.825 million and $1.75 million respectively. Evan Griffith, first vice president investments, Tony Pepdjonovic, vice president investments, and Jeremy Buckley, an associate in Marcus & Millichap’s Boston office, had an exclusive listing to market the property in Framingham on behalf of the seller and secured the buyers for both transactions.
The team completed the 1031 exchange from a highly management intensive 22-unit apartment building to an absolute net leased Dunkin Donuts property with zero management responsibilities.
139-143 Hollis St. is a 22 unit apartment building located in downtown near the Framingham Commuter Rail MBTA station. The property is comprised of 12 two-bedroom units, 9 one-bedroom units, and a studio apartment. As exclusive agents, the trio created a competitive bidding process with the winning buyer closing the property at $2.825.
“Framingham is going through an exciting period of gentrification and is continuing to see strong occupancy and robust rent growth,” said Griffith. “The proximity to mass transit continues to be a major price driver for suburban apartment properties.”
The Dunkin Donuts was leased to the largest private franchisee in the country and the location boasts high traffic counts on a main thoroughfare of the city. This investment will provide stable cash flow to the buyer with zero landlord responsibilities for years to come.
“Long term multi-family owners are flocking towards management-free net leased properties as cap rate compression stays steady,” said Buckley, “We have several other clients that are under contract looking to also take advantage of deferring the taxes while continuing to enjoy the cash flow and depreciation of investment real estate.”
The two transactions closed within 45 days of each other.