$47M sale of East Boston multi-housing portfolio closes
JLL Capital Markets closed the sale of the 36, transit-oriented apartment properties spread across the East Boston neighborhood
BOSTON, Oct 11, 2022 – JLL Capital Markets announced today that it has closed the $47 million sale of a 36-building, 114-unit, multi-housing portfolio in the growing East Boston neighborhood.
JLL represented the seller, a joint venture between The Grossman Companies and Hodara Real Estate Group. East Boston Neighborhood Trust (EBNT), a newly formed Mixed-Income Neighborhood Trust (MINT) sponsored by East Boston Community Development Corporation (EBCDC) and Trust Neighborhoods, acquired the portfolio with the primary goal of establishing permanently affordable housing stock in the neighborhood. EBNT’s acquisition was supported by a diverse group of local investors, the City of Boston, acting through the Mayor’s Office of Housing, and the Boston City Council, who provided funding through ARPA and the City’s Acquisition Opportunity Programs.
EBCDC and Trust Neighborhoods were attracted to the portfolio given the immediate scale it provides across all neighborhoods, the family-sized units, the quality of assets and the access to transit.
The portfolio includes 36 buildings spanning the Jeffries Point, Eagle Hill and Orient Heights neighborhoods within Greater East Boston. The properties feature floorplans ranging from studios to seven-bedroom units with the majority being one- and two-bedroom units.
The 36 properties are spread across 2.5 miles within the neighborhood. Residents benefit from access to four MBTA Blue Line stations, the immediacy to downtown Boston, proximity to Boston Logan Airport and a fully walkable neighborhood. The properties also offer easy highway connectivity to Route 1, I-90 and I-93. Additionally, the properties are just five-minutes from the neighboring Suffolk Downs redevelopment, which will encompass 16.2 million square feet of commercial, life science, retail and residential space.
"As Boston continues to grow, we are moving urgently to ensure that all of our residents and families have access to safe, affordable housing," said Boston Mayor Michelle Wu. "This acquisition of over 100 units in East Boston is a great example of what is possible when we use every tool as a city and partner across sectors to make Boston a city for everyone. I'm grateful to the Mayor's Office of Housing for their leadership and look forward to accelerating our efforts for affordability across our neighborhoods.”
The JLL Capital Markets Multi housing team was led by Director Kellie Coveney, Director Jacqueline Meagher and Associates Madeline Joyce and James Burr.
“The portfolio thoughtfully encompassed a variety of multi-housing product in East Boston,” said Coveney. “There was strong interest from the market and the overall outcome represents a great execution and partnership between buyer and seller.”
“Having acquired these assets piece-meal over a 24-month period in 2014-2015 and completing moderate renovations in all of the units, we are pleased to have successfully executed our strategy by selling the portfolio to a single buyer,” said David Grossman, principal at The Grossman Companies. “On behalf of the Grossman family and our investors, we are ecstatic that these units will be owned for the long-term by EBCDC and its constituents, who will preserve this housing and lease it to mixed-income residents going forward.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 102,000 as of June 30, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About The Grossman Companies
The Grossman Companies is a family-owned real estate firm with local roots dating back over 120 years. Their services span acquisitions, private lending, asset management and property management. They own and manage an approximate 2.5 million square foot portfolio of commercial and residential properties concentrated in southern New England.
About East Boston Community Development Corporation
EBCDC has achieved success in reaching their goals through implementation of a variety of programs. EBCDC has helped to cushion the blow of high housing prices on low income residents through loans, technical expertise, tenant associations and other assistance programs. Examples of EBCDC’s impact range from small to large rehabilitated properties, new neighborhoods of homes, and tenant-managed and tenant-owned developments.
In addition, EBCDC works in collaboration with the community in the areas of business development and technical assistance, physical development, job creation and provision of social services.