Trade Of Garrison Square for $98 Milion Going To Rockies

BOSTON—Luring another national investor to the Hub’s relatively stable apartment arena, Cushman & Wakefield’s multifamily team this week negotiated the $98 million sale of Garrison Square in the Hub’s Back Bay District, reaping a $6 million gain for the Archon Group in the 160-unit property’s purchase by UDR Inc. Based in Colorado, UDR’s initial foray into Massachusetts is being followed up by acquisitions of other multifamily communities in suburban locales, including a pending deal in Stoughton.

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C&W’s multifamily sales division is led by Executive Directors Simon J. Butler and Biria St. John, who did not respond to inquiries regarding the transaction. One source says the property was “marketed selectively” to a few likely prospects, including UDR, which was lured by a “can’t miss” location amidst one of the city’s most vibrant neighborhoods, an area that can be appropriately classified as a 24-hour environment. “You really can’t beat it,” says the source, an expert on Boston’s residential housing industry.

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The Garrison Square property itself is well-appointed, adds the source, citing an original plan to develop the units as condominiums for delivering an enhanced measure of quality. Situated on a 1.3-acre parcel, the mix of units includes 43 one-bedroom apartments, 104 two-bedroom units and 13 rare three-bedroom layouts. A rooftop terrace offers skyline views, there is a private courtyard with fountains, and Garrison Square also has on-site controlled access parking.

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Garrison Square is just the latest multifamily sale completed this year by C&W’s team, which also is presently representing the Park Lane Seaport residential tower in Boston on behalf of the Fallon Cos. In another late-summer transaction that has just closed, Butler & St. John also orchestrated the sale of Willow Grove at Danbury in that suburban Connecticut stronghold. The pair worked with Andrew Merin and Brian Whitmer in the 135-unit community’s purchase by TGM Associates.

Unlike the solid gains enjoyed by Archon in Boston, however, the Danbury sale reflected a loss for its former owners, who had paid a reported $37 million and divested it for $24.5 million. The slippage underscores how substantially rents have dropped in recent years, says one market watcher who predicts veteran apartment operator TGM will be able to revitalize the Class A complex. “I like the math,” the source says of TGM’s position.

As with Garrison Square, the Danbury property is also mixed in unit size and layout.

As with Garrison Square, the Danbury property is also mixed in unit size and layout. There are 36 one-bedroom apartments, 24 one-bedroom/loft units, 46 two-bedrooms and 29 two-bedroom/lofts. The average unit size is 1,230 sf, while the apartment community also features a clubhouse, 24-hour fitness center and heated pool.

In terms of UDR, it is unclear whether Connecticut is seen as a growth market, but the REIT seems intent on ramping up its Massachusetts holdings. In confirming the Garrison Square investment, UDR says in a press release it is also buying the 186-unit Ridge at Blue Hills in Braintree for $40 million and the Lodge at Stoughton in Stoughton for $43.1 million. Both are owned by the Hanover Company. “We are extremely excited to expand our portfolio in our core markets and enter the Boston market, one of the nation’s least affordable homeownership markets,” UDR President and CEO Tom Toomey says in a statement, explaining it is part of the REIT’s key strategies. As of June 30th, the entity had an ownership position in 51,823 apartments nationally.