JLL arranges $13.5m sale and financing of 96-room Residence Inn

Danvers, MA JLL Capital Markets  arranged the $13.5 million sale and financing of the 96-room Residence Inn Boston North Shore/Danvers, an extended-stay hotel with approved conversion rights to an 88-unit multifamily residential community. The property is located at 51 Newbury St., 20 miles north of Boston.

JLL represented the seller, an affiliate of PEG Companies, Inc., in the transaction. Torrington acquired the asset and plans to move forward with a multifamily conversion after an initial period of continued hotel operations under the Residence Inn brand. JLL also worked on behalf of Torrington to secure financing for the acquisition.

Built in 1989 on 4.11 acres, the property sits at the junction of I-95, U.S. Rte. 1 and Rte. 128, providing access to downtown Boston, Logan International Airport and the North Shore region. The hotel features apartment-style suites with fully-equipped kitchens, a complimentary breakfast area, fitness center, seasonal outdoor pool and meeting space.

The property’s location positions it for both hospitality and residential use, with proximity to major retail centers including Liberty Tree Mall and Northshore Mall, as well as significant corporate employers and healthcare facilities throughout the North Shore corridor. The site benefits from dense commercial activity and strong transportation connectivity that drives demand from both business travelers and potential apartment residents.

Current ownership secured municipal zoning approvals for an 88-unit apartment conversion from the Danvers Zoning Board of Appeals. The approved residential conversion offers a cost-efficient alternative to ground-up multifamily development in a market facing severe housing supply constraints and strong rental demand driven by a significant homeownership cost premium.

The property was delivered with brand and management agreements which allow the new owner flexibility to continue hotel operations or execute the residential conversion. The North Shore hotel market has seen no new supply in the past 10 years, while the multifamily sector maintains strong occupancy with minimal new construction. 

The JLL Capital Markets team included Hotels & Hospitality senior managing director Alan Suzuki and managing director Matthew Enright; managing directors John Flaherty and Jon Bryant, who represented the multifamily investment perspective; and associates Michael Schwarze and Anthony Nakhle. The Debt Advisory team that arranged the acquisition financing included director Michael Shepard, director Ryan Parker and associate Hunter Cuthbertson.

“The North Shore continues to benefit from its position as a high-barrier suburban alternative to Boston, with strong fundamentals supporting both hospitality and residential demand,” Suzuki said. “Torrington recognized the value in acquiring an income-producing hotel asset with a de-risked pathway to capitalize on severe housing supply constraints and robust rental demand in one of Greater Boston’s most connected suburban markets.”