PGIM and Toll Brothers Secure $226M to Develop Boston Multifamily

BOSTON, MA – PGIM Real Estate and Toll Brothers Inc., through its Toll Brothers Apartment Living rental division, have formed a joint-venture partnership to develop a 432-unit luxury multifamily community in downtown Boston, MA.

For the project, the partnership has secured a $226 construction loan facility from Wells Fargo N.A. as agent, along with BNY Mellon and the Bank of East Asia Ltd.’s New York branch. Toll Brothers’ in-house finance department arranged the debt and equity.

The 34-story rental community, titled Lyra, will consist of 376 market-rate units and 56 affordable units. The tower will feature a 24-hour concierge, a state-of-the-art fitness center, co-working space, a lounge and meeting room, a screening room, a pet spa, bicycle storage and a rooftop lounge with an outdoor terrace.

Lyra will also offer a 66-space parking garage and 5,500 square feet of ground-floor retail. The retail space is purpose-built for a single-tenant dining opportunity, with a two-story glass jewel box design.

The project represents Toll Brother’s Apartment Living’s first development in Boston.

“As part of our expansion throughout the northeast market, we are thrilled to enter downtown Boston with Lyra, a luxurious, amenity-rich retreat from the hustle and bustle of downtown that still provides residents outstanding access to some of the very best shopping, dining and entertainment destinations found in the city,” says Toll Brothers Apartment Living president Charles Elliott.

Located at the intersection of Huntington Ave. and Massachusetts Ave., the community is situated near multiple MBTA routes, several arts and entertainment venues, such as Boston Symphony Hall and the Huntington Theatre Co., and more than 15 million square feet of commercial office space. The property also offers access to commercial hubs and retail destinations, including Boston’s Back Bay, Fenway-Kenmore, South End, the Prudential Center, Copley Place and Newbury St.

“We are pleased to partner with Toll Brothers for our latest joint development,” states Frank Garcia, managing director and senior portfolio manager at PGIM Real Estate. “In the wake of COVID-19, we have seen a strong rebound in the demand for apartments in Boston, leading to rising occupancies and rents throughout the cities’ neighborhoods. Lyra will help us cater to a diverse group of residents looking to live in one of the most accessible areas of the city.”

“Lyra will be another very exciting upscale urban high-rise transit-oriented community from Toll Brothers Apartment Living,” says Fred Cooper, SVP of finance and investor relations for Toll Brothers. “With suburban and urban projects across the country, TBAL was recently ranked the 11^th largest multifamily developer in the US by the NMHC.”

Cooper adds, “PGIM Real Estate has been our valued partner on a number of these projects as we have grown, and Wells Fargo and BNY Mellon have been great construction lenders on multiple communities as well. The addition of The Bank of East Asia rounds out our excellent team at Lyra.”