MG2 Secures $46.5M via AY for Construction of Four East Boston Multifamily BuildingsFebruary 20, 2020
BOSTON–Avison Young has arranged $46.5 million in financing for the construction of four residential properties located in East Boston. Avison Young worked on behalf of the borrower, MG2 Group, LLC, to secure the construction financing through East Boston Savings Bank and Varde Partners.
The properties will range in size from 19 to 38 units in boutique-style buildings designed to suit East Boston’s demand for new construction rental properties. The properties are located at 319- 325 Chelsea Street, 152 Liverpool Street, 656 Saratoga Street and 277 Border Street. They will include approximately 87 percent market rate and 13 percent inclusionary units. There will also be a total of four retail spaces. The projects will deliver across a staggered schedule during the first half of 2021.
According to a release, the historic neighborhoods of East Boston have been rediscovered as one of the more desirable residential locations. Each of MG2’s construction properties are located within a short walk of the MBTA Blue Line and are situated along the string of amenity-rich city squares that characterize East Boston. Located only minutes from the Boston CBD via the Blue Line, the demand for rental properties in East Boston has surged in recent years.
The Avison Young Capital Markets team representing MG2 includes Senior Vice President Michael Buckley, Senior Financial Analyst Derek Opert and Associate Taylor Phelan, all from the firm’s Boston office, and Managing Director Wes Boatwright of the firm’s Washington, D.C. office.
“East Boston is loaded with parks, playgrounds and beachfront that have been long underappreciated, even though it’s a waterfront neighbor to downtown Boston” said Buckley. “MG2 deserves tremendous credit for its vision and strategy to invest in East Boston. They deliver thoughtfully designed and well-built properties that will suit the market, and their dedication to their residents, and to the community itself, is exceptional”.
“Michael Buckley and the Avison Young team worked diligently to understand MG2’s financing objectives and present the transaction to potential lenders. We are pleased with the East Boston Savings and Varde financing structure,” said John McGrail, MG2 President.Michael Buckley John McGrail