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42-Unit Renovated Rosewood Apartments in Salem NH Fetches $10.4M Via H&T

September 21, 2022 — By John Keith
1-7 Meisner Circle, Salem NH

SALEM, NH — Less than two miles from the mega development branded Tuscan Village, the 42-unit Rosewood apartments have benefitted mightily from its premium location and recent upgrades - as proven in the $10.4 million trade of the seven-building, 2-story compound. It was an impressive $247,519 per unit arrangement for the garden-style property just north of the Mass border, in an extremely ambitious sale as reported by the multifamily team of Horvath&Tremblay.

“This sale is conducive to the strength of the Southern New Hampshire market. It was a very competitive bidding process between investors,” lauds Will Peck, Vice President and market advisor, who along with multi-family veterans Dennis Kelleher and John Pentore procured the buyers and represented the seller, Rosewood, LLC. managed by local investor, Raymond Safi.

The buyer, Three 33 Properties LLC, managed by Noah Hano secured a $5.7 Million Acquisition loan through CBRE.

With the continued aggressive uptick in mortgage rates, investors will certainly be more discerning on both sides of the transaction. A change that Kelleher says the two experienced real estate investors have dealt with seamlessly. “The seller and buyer were both great to work with ... the sellers did a great job renovating units, completing 26 out of the 42 units, and given the buyer’s experience of owning and operating many multifamily assets, they are well positioned to continue the programmatic renovations as well as increasing the in-place rents up to market rates. Their experience made for an incredibly straightforward exchange,” recounts Kelleher.

Rosewood is ideally located at 1-7 Meisner Circle on a 4.7-acre site, in close proximity to Interstate 93 and 495. The buildings are set on a residential street around a well-landscaped cul-de-sac with off-street parking, and just minutes from the Rockingham Mall. All strong amenities, making the deal a solid value-add play in what is becoming ambiguous times for commercial investors, given rapid changes in rates. Yet, the multifamily product seems to be adjusting at scale.

“We have continued to consistently come to market and transactions are still being completed despite the rapid increase in rates. There had been a lack of supply over the past few years which couldn’t keep up with the investor appetite for new acquisitions,” says Peck. He portends that with the rising rates activity has slowed down but the imbalance between buyer and seller is just more of a return to normalcy. “Rents have continued to increase at an incredible rate which is helping offset some of the negative effects the rise in interest rates are having on the market.”

Kelleher reports the multifamily team has continued its 2022 run throughout Greater Boston and into Southern New Hampshire, completing their most recent multifamily assignments in South Boston, Cambridge, Lynn, Lawrence, and Manchester.

John Pentore Will Peck Dennis Kelleher