Forest Properties Shifts 500-Plus Hub Apartments; Hamilton Co. Takes 135 Units for $22.5M

BOSTON—A portfolio of 516 apartments has been reshuffled via two separate transactions, one of them featuring the Hamilton Cos. buying 135 units in Allston for $22.5 million. In the other arrangement, specifics of which remain sketchy, Forest Properties Management founder Jeffrey A. Libert has reportedly taken majority control of several buildings in the city’s Fenway neighborhood, including 74, 76 and 78 Burbank St.; 149-151 Park Dr.; and 91 Westland Ave. (pictured).

Libert had been involved in the portfolio with Brookline investor Andre Danesh since July 2009 when the two bought out FPM’s then-partner BlackRock Real Estate in a blockbuster acquisition valued in the $90 million range. Essentially, according to sources, Libert is taking on Danesh’s position in the 516 units not secured by the Hamilton Co. “That’s the upshot,” says one source tracking the shifting tide of a portfolio pool that Libert has had an interest in since the 1980s, and also has handled leasing and management of through his Newton-based company. Libert and Danesh were not available as of press deadline.

According to public records, Libert has secured financings of $27.0 million and $31.6 million from People’s United Bank to facilitate his portion of the portfolio reconfiguration. The Connecticut-based lender has been involved in the FPM properties since arranging a $21.0 million loan in July 2009 when BlackRock sold its interest to FPM and Danesh. The smaller loan covers 24, 64 and 175 Hemenway St., plus 89-95 and 121 Park Dr. The mortgage of $31.6 million is on the Burbank Street and Westland Avenue assets along with 149-151 Park Dr.

People’s United also participated in the Hamilton portion by delivering a $15.5 million loan. Situated near Union Square, the Allston assets are at 5, 6, 8 and 15 Barrows St. and 435, 437, 439, 441, 506-510, 508, 510A, 512, 518, 520 and 524 Cambridge St. The entity buying that assemblage is Hamilton Union Associates, with Hamilton Co. founder Harold Brown and Guilliaem Aertsen IV listed as managers. “We’re excited,” Hamilton Co. President Carl A. Valeri tells therealreporter.com on Wednesday in acknowledging the closing. The properties, he says, “are well-maintained and well-positioned,” with occupancy effectively 100 percent. The Hamilton Co. now has nearly 5,000 apartments, an inventory that is also full. The firm itself is headquartered mere blocks from the FPM holdings just acquired.

“We are proud to increase our ownership stake in the Allston neighborhood, where Hamilton established its roots nearly 60 years ago,” says Valeri, terming Libert’s oversight “first class” and adding “it is rare for an opportunity such as this to occur in our backyard.” At $166,000 per unit, Valeri says the assets were secured below replacement cost, making the investment even more prized. Besides five studios and four dozen one-bedroom units, the package is dominated by 62 two-bedroom apartments, and is rounded out by 20 three-bedroom units.
The broker handling Hamilton’s purchase is Susan Allen of Allen Associates in Newton, while Saul Ewing LLP attorney Sally Michael provided legal counsel for the buyers.