Torrington Takes 96-room Residence Inn Danvers; Plans Multifamily Conversion

​DANVERS — A 96-room extended-stay hotel in Danvers will become an 88-unit apartment complex after a $13.5 million sale and financing deal arranged by JLL Capital Markets. The Residence Inn, an extended-stay hotel has approvals to convert to an 88-unit multifamily residential community. The property is located at 51 Newbury St. in Danvers, Massachusetts, approximately 20 miles north of Boston.

JLL represented the seller, an affiliate of Utah-based PEG Companies, Inc., in the transaction. The Hub home-grown Torrington Properties has acquired the asset and plans to move forward with a multifamily conversion after an initial period of continued hotel operations under the Residence Inn brand, according to a JLL release. JLL worked on behalf of Torrington to secure financing for the acquisition as well.

The previous ownership secured municipal zoning approvals for an 88-unit apartment conversion from the Danvers Zoning Board of Appeals. The approved residential conversion offers a cost-efficient alternative to ground-up multifamily development in a market facing severe housing supply constraints and strong rental demand driven by a significant homeownership cost premium.

The property was delivered with brand and management agreements which allow Torrington the flexibility to continue hotel operations or execute the residential conversion. The North Shore hotel market has seen no new supply in the past 10 years, while the multifamily sector maintains strong occupancy with minimal new construction.

“The North Shore continues to benefit from its position as a high-barrier suburban alternative to Boston, with strong fundamentals supporting both hospitality and residential demand,” said Alan Suzuki, Hotels & Hospitality Senior Managing Director at JLL. “Torrington recognized the value in acquiring an income-producing hotel asset with a de-risked pathway to capitalize on severe housing supply constraints and robust rental demand in one of Greater Boston’s most connected suburban markets.”

Along with Suzuki, the JLL Capital Markets team included Hotels & Hospitality Senior Managing Director Alan Suzuki and Managing Director Matthew Enright; Managing Directors John Flaherty and Jon Bryant, who represented the multifamily investment perspective; and Associates Michael Schwarze and Anthony Nakhle. The Debt Advisory team that arranged the acquisition financing included Director Michael Shepard, Director Ryan Parker and Associate Hunter Cuthbertson.