Hingham Co. Buys 96 Andover Apartments Via Boston Realty Advisors and Leader Bank Loan

ANDOVER—Boston Realty Advisors has completed a large multifamily sale north of Boston in the $19.7 million trade of Casco Crossing at 168 River Rd. The four-building, 96-unit complex was acquired by Jones Street Investment Partners of Hingham and backed by $14.7 million in Leader Bank financing arranged by BRA’s Debt & Structured Finance Group which is led by Nicholas Herz.

BRA Multi-Housing Investment Sales principal Christopher D. Sower was joined by team members Jennifer R. Price and Benjamin M. Karp as brokers negotiating the off-market agreement struck on behalf of the seller, Andover Portland Avenue Associates LLC, developer of the project that opened in 2007 on a 5.4-acre parcel situated in one of the state’s most desired residential communities, a cachet so strong that Sower says it was part of Casco Crossing’s appeal as an opportunity for the winning suitor, an operation managed by Matthew G. Frazier procured by the BRA contingent. “This transaction was driven by the high-quality location, access to Interstate 93 and the favorable debt environment,” Sower recounts in adding that “both the buyer and seller were a pleasure to work with.”

The quartet of buildings comprising Casco Crossing contain a mix of one- and two-bedroom units and the property also features a fitness center, swimming pool and covered parking. Not only is Andover a well-regarded community in its own right, Sower says residents of Casco Crossing are also able to commute to major employment centers in Boston and Cambridge via both the advanced highway network and a commuter rail station in Andover connecting to North Station.

Being able to crest $200,000 per unit—the actual average is $205,769—in the sale is reflective of the new construction and Casco Crossing’s solid occupancy and rent performance over the years, according to Sower, but he says the asset does provide a value-add component that could yield future returns for the Jones Street group. Tight multifamily fundamentals are projected to enhance rents further, he explains, as could an anticipated renovation program that will include installation of new baths and kitchens.

The BRA Multi-Housing Investment practice area has had an eventful season to begin with already in 2015, having previously advised the Richmond Co. in its $25.3 million disposition of 114 new institutional grade apartments in Wakefield in March, a listing shared with JLL on the project at 105 and 109 Hopkins St. acquired by True North Capital Partners. The separate assignments exemplify BRA’s continued widening of its geographic footprint beyond a focus in Boston and Cambridge where the multi-housing team has brokered several hundred million dollars in deals since being organized four years ago this spring. “We are definitely expanding our portfolio to more areas,” relays Sower, whose platform has already done business across New England into Maine, New Hampshire and Rhode Island while still keeping the urban realm active. “We have been busy,” Sower reports, crediting robust market fundamentals and the lingering low interest-rate environment for keeping the multifamily arena among the most popular destinations for CRE capital, a constituency which has found metropolitan Boston especially attractive.

As the BRA crew continues to grow, Sower says the arrival this past year of Herz to provide debt and equity solutions has been well-received by clients, with Jones Street taking advantage via the Leader Bank commitment at Casco Crossing. Terms of the loan agreement were not divulged.