Walker & Dunlop has arranged $356.41 million in financing for a four-property 1.8 million square foot portfolio in the New England region.
The number of units involved comes out to 1,817. Most of the communities are located in Massachusetts, with one situated outside of the state. This includes 473-unit Royal Crest Marlboro in Marlborough, 588-unit Waterford Village in Bridgewater and 264-unit Wexford Village in Worcester. The one positioned outside of the state is 492-unit Royal Crest Warwick in Warwick, Rhode Island. All of the properties were built between 1970 and 1974.
Freddie Mac provided the financing.
The move is part of Harbor's five-property $740 million acquisition last month that the company announced, which included a total of 2,719 units. At the time, the Norfolk, Virginia-based firm said it managed more than 3,600 multifamily units in the region.
Why is Harbor targeting the area that includes six states, including New Hampshire, Maine, Rhode Island and Massachusetts, plus Boston? The strong fundamentals, as Walker & Dunlop's Craig West highlighted the area's "population trends, job growth, and resilient local economy" for driving multifamily demand in the region.
“The Boston area continues to demonstrate strong multifamily fundamentals, a market where we already maintain a significant operating presence,” Yisroel Berg, CEO of multifamily at Harbor Group, said in a statement.
“With limited new supply near each property, we are well positioned to leverage our local expertise to sustain strong occupancy and execute targeted renovations.
While Greater Boston is showing mostly strong fundamentals, Colliers revealed in a second report that multifamily vacancy in the region spiked to more than a four-year high of 6.3 percent. Still, construction is at its lowest levels seen since 2012 and rents grew by 2.2 percent year-over-year, making the area still quite attractive for investors.
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