Universal Properties Sees Canton Property as Value-Add

CANTON, MA—Universal Properties has expanded its multifamily portfolio with the purchase of the Arboretum Apartments here. The Newton, MA-based firm acquired the 156-unit development from Equity Residential for $28.6 million.

Stuart Levey, president and CEO of Universal Properties, tells Globest.com, the deal marks Universal Properties' entrance in Canton, MA. Universal has renamed the complex, which is currently 97% occupied, Woodfield Commons.

The deal was announced by brokerage firm JLL, which marketed the property for sale. JLL managing directors Travis D'Amato and Michael Coyne, and VPs Kevin Gleason and Brendan Shields led the JLL team on the deal.

D'Amato says the former Arboretum Apartments presented a tremendous opportunity to take advantage of a thriving suburban multifamily market at a discount to the surrounding assets.

Universal's Levey tells Globest.com that his firm, which invests in Class B multifamily assets, had conducted three prior real estate deals with Equity that had all been successful. He says the former Arboretum Apartments property “really sort of fell under the radar for a Canton property,” he notes.

The purchase marks Universal's first property acquisition since it acquired the 211-unit Weymouth Place community in Weymouth, MA from AvalonBay Communities in June 2014 for $25.75 million. He adds that the Weymouth property also was a property “that fell under the radar” with investors.

In relation with its latest purchase, Levey says, “We really stepped up to the plate because this asset was an asset that needed a little rebranding and we are really excited about it.” Noting that since the June 2014 purchase, Universal Properties, a B value-add investor, did not see any properties during that period that met its business profile.

Universal, which has a multifamily portfolio that totals 1,500 units in Massachusetts and Rhode Island, owns properties in neighboring Town of Stoughton and nearby communities. “For economies of scale purposes, it was perfect,” Levey notes.

“I think it is a tremendous opportunity to take advantage of a great market,” Levey says. Universal plans a capital improvement program of more than $1 million at the property. That program will include landscaping, paving, new appliances, as well as converting the flooring from carpeting to wood, a staple of Universal Properties communities. A total of 25% of the units at Woodfield Commons are affordable, with 75% at market rents. Most of the units are either two- or three-bedroom units.

Once the capital improvement program has been completed, Universal will likely push rents there to be more competitive with other market-rate communities in the region.

The approximately 10-acre property features 12 buildings and a resident clubhouse, Community amenities include an on-site dog park, an outdoor basketball court, a fitness center, a grilling area, a pool and a playground. In-unit amenities include private balconies, washer/dryer, central air conditioning, walk-in closets and kitchens with breakfast bars.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.

CANTON, MA—Universal Properties has expanded its multifamily portfolio with the purchase of the Arboretum Apartments here. The Newton, MA-based firm acquired the 156-unit development from Equity Residential for $28.6 million.

Stuart Levey, president and CEO of Universal Properties, tells Globest.com, the deal marks Universal Properties' entrance in Canton, MA. Universal has renamed the complex, which is currently 97% occupied, Woodfield Commons.

The deal was announced by brokerage firm JLL, which marketed the property for sale. JLL managing directors Travis D'Amato and Michael Coyne, and VPs Kevin Gleason and Brendan Shields led the JLL team on the deal.

D'Amato says the former Arboretum Apartments presented a tremendous opportunity to take advantage of a thriving suburban multifamily market at a discount to the surrounding assets.

Universal's Levey tells Globest.com that his firm, which invests in Class B multifamily assets, had conducted three prior real estate deals with Equity that had all been successful. He says the former Arboretum Apartments property “really sort of fell under the radar for a Canton property,” he notes.

The purchase marks Universal's first property acquisition since it acquired the 211-unit Weymouth Place community in Weymouth, MA from AvalonBay Communities in June 2014 for $25.75 million. He adds that the Weymouth property also was a property “that fell under the radar” with investors.

In relation with its latest purchase, Levey says, “We really stepped up to the plate because this asset was an asset that needed a little rebranding and we are really excited about it.” Noting that since the June 2014 purchase, Universal Properties, a B value-add investor, did not see any properties during that period that met its business profile.

Universal, which has a multifamily portfolio that totals 1,500 units in Massachusetts and Rhode Island, owns properties in neighboring Town of Stoughton and nearby communities. “For economies of scale purposes, it was perfect,” Levey notes.

“I think it is a tremendous opportunity to take advantage of a great market,” Levey says. Universal plans a capital improvement program of more than $1 million at the property. That program will include landscaping, paving, new appliances, as well as converting the flooring from carpeting to wood, a staple of Universal Properties communities. A total of 25% of the units at Woodfield Commons are affordable, with 75% at market rents. Most of the units are either two- or three-bedroom units.

Once the capital improvement program has been completed, Universal will likely push rents there to be more competitive with other market-rate communities in the region.

The approximately 10-acre property features 12 buildings and a resident clubhouse, Community amenities include an on-site dog park, an outdoor basketball court, a fitness center, a grilling area, a pool and a playground. In-unit amenities include private balconies, washer/dryer, central air conditioning, walk-in closets and kitchens with breakfast bars.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.