Marina Bay Apartment Complex Trades for $35M

QUINCY, MA-A Boston-based investment and development firm paid $35 million for a 135-unit apartment complex Marina Bay. The deal gives Core Investments Inc. a 98%-leased property in a waterfront community.

The firm acquired the six-story concrete and stucco apartment complex, known as the Reserve at Marina Bay, from Chicago-based Equity Residential, making it the sixth acquisition in Core Investment's Bay State portfolio. The firm also owns properties in Boston and Westminster.

The sale was the second in Marina Bay for Equity, which last July sold off a sister property, known as the Atlantic at Marina Bay, for $29.5 million to the Abrams Group of Boston. The buyer planned to convert the 108 apartments into condominiums.

Frank Petz with CBRE/Melody, who along with colleague Sean McKenna, secured $35 million in financing for the Core acquisition, tells GlobeSt.com that the new owner currently has no plans to convert the Seaport Drive property into condominiums, although that does remain an option. Petz says the new owner also plans several upgrades including painting the building's common areas and reconfiguring its open space.

Officials from Core Investments did not return calls from GlobeSt.com seeking comment. The Reserve at Marina Bay is part of a 400-acre, mixed residential and commercial development that includes four condominium communities with a total of 625 units, two apartment buildings, a 685-slip, full-service marina, restaurants, businesses and retail shops. Hey are all situated along a waterfront boardwalk. The apartment complex is comprised of one and two-bedroom units, each with outside balconies. Amenities that include a fitness center, laundry, 156 surface parking spaces and 80 underground spots.

Financing for the acquisition was structured through a first mortgage, placed with an international and regional bank, and a high leverage mezzanine debt that was sourced and structured with an S&P 500 company. Both loans are for a term of five years.