Brookline Multifamily Trades for $74M

BROOKLINE, MA—Chestnut Hill Realty has added a 115-umit mid-rise apartment community here to its portfolio for $73.5 million.

1443 Beacon LLC, an affiliate of Boston-based Chestnut Hill Realty, acquired the property from Brookline Associates Limited Partnership, an entity controlled by the Sydney family, which developed the property, according to Stephen E. Gladstone, director of acquisitions for Chestnut Hill Realty.

1443 Beacon Street was built in 1979 and is a 100% market rate community. The property consists of a single, eight-story steel and concrete elevatored building over a two-story garage. The 115 units are in a variety of one-bedroom, two-bedroom, three-bedroom and four bedroom units with an average apartment home size of 928 square feet. There are also two commercial medical suites and 122 garage parking spaces. Community amenities include a community room, patio area, sundeck, pool and fitness center. The transaction closed on July 1. At the time of the sale the property was 100% occupied.

“We are going to be doing unit renovations, hallway renovations and we always go in and do some landscaping improvements, that is sort of a signature of ours,” Gladstone says. “We may end up doing some roof decks and generally improving the amenities. They have a very small gym right now, so we will probably add a gym and redecorate the community room.” Gladstone estimates the cost of the capital improvements will be approximately $8 million to $10 million.

Chestnut Hill has significant multifamily holdings nearby and had wanted to acquire the community for some time. After failing to convince the former owner to sell it privately, Chestnut Hill bested other bidders for the Beacon St. property. The company now owns more than a 1,000 units in the Brookline area.

“We think it is probably the best rental property in Brookline,” Gladstone says, adding that Brookline is the most desirable rental housing market in the Boston suburbs.

Chestnut Hill believes the rents at the property are below market and will eventually look to raise rents there once renovations are complete. Overall, the average market rent for the property is a little over $3,300. There are 75 one-bedroom apartments at the property, with an average market rent of about $2,900. There are 34 two-bedroom apartments, with an average market rent of approximately $3,950 and there are six, three/four-bedroom apartments, with an average market rent of about $5,000.

CBRE/New England's multi-housing experts Simon Butler, vice chairman and partner, and Biria St. John, vice chairman and partner, exclusively represented the seller.

“We are pleased to have facilitated the sale of 1443 Beacon Street on behalf of our client who had owned the asset since developing the property in 1979,” CBRE's Butler says. “The asset is truly unique, located in the Coolidge Corner neighborhood of Brookline surrounded by retail amenities and unparalleled access to public transportation. The community offers a generational investment opportunity for Chestnut Hill Realty with good upside through upgrades and the continued improvement of the rental market.”