Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WALTHAM, MA-Home Properties purchased Gardencrest Apartments, a 696-unit residential complex. The Rochester, NY-based REIT acquired the property from the DeVincent family for $85.4 million or $122,000 per apartment.

The complex is divided into 64 buildings sited on 33.6 acres located in the heart of the metro west corridor on Route 60 near Route 128, about nine miles northwest of Boston. The property is currently 95% occupied with monthly rents averaging $1,004. The buildings were constructed in several phases between 1948 and 1973 and include two- and three-story structures. The average unit size is 877 sf with 11 studio apartments, 138 one-bedroom units, 500 two-bedroom units and 47 three-bedroom units. The acquisition is the first in the state for Home Properties, the sixth largest publicly traded REIT in the country.

Meredith & Grew Inc.’s David L. Pergola, executive vice president, Anthony W. Biette, vice president and Sarah B. Lagosh, financial analyst represented the owners in the transaction.

Home Properties says it will spend over $10 million in community-wide improvements during the first few years of operation. Renovations will include new windows, a new community center, new heating and air conditioning systems and an expanded parking area.

The company anticipates a 7% first year unleveraged return on acquisition and capital improvement costs. It contends that while rent increases for existing residents will be gradual, cash flow is expected to increase substantially over time from higher rents. Because the market rate for apartments is approximately 45% higher than the current rental rates in the complex there are opportunities for rental rate increases.

Home Properties currently operates 290 communities containing 50,537 units. The company also manages 2.2 million sf of commercial space.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


GlobeSt. APARTMENTS Fall 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.