Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

LEXINGTON, MA-ING Clarion made its first Bay State apartment buy since 1999 with the $28.6-million acquisition of a 128-unit, fully leased class A apartment community here.Deke Schultze, with ING Clarion, tells GlobeSt.com that the property, known as Katahdin Woods, represented a value-added buy for the firm, known more for its acquisition of office properties than multifamily communities. “We anticipate that rents will continue to grow in the Lexington market due in large part to supply constraints,” says Schultze. “We also feel employment is on the rise in the Lexington area, which bodes well for demand.”

Set on 12 acres and surrounded by wooded conservation land, the 124,400-sf complex, located at 1 Katahdin Dr., features a swimming pool, fitness center, basketball courts and clubhouse. It is currently 100% occupied at rates ranging from $1,600 for a one-bedroom unit to $2,900 for a three-bedroom townhouse.

Biria St. John, with CB Richard Ellis’ Boston office, represented the buyer with colleague Simon J. Butler. St. John tells GlobeSt.com that the property’s key location sparked some tough competition among pension funds, REITs and value-added investors when its owner, an undisclosed pension fund, put it on the block.

“They recognized the value and the upside in the market, with Lexington and Waltham being a core office market,” St. John notes. “They saw the upside in the continued growth of the office market and knew that the apartment market would benefit from that increased demand.”

St. John says the acquisition, made on behalf of a core commingled fund advised by ING Clarion, “represents some good upside” for the new owners. The new owners, according to Schultze, plan to continue and expand on a renovation program to upgrade most of the units within the next two years.

ING Clarion’s last apartment acquisition in Massachusetts was in 1999 when the firm purchased Museum Towers, a 435-unit luxury high-rise apartment complex in Cambridge, Schultze says. It then sold in 2004 for $146 million.

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?


GlobeSt. Multifamily Spring 2022 (Formerly APTS)Event

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
Live Chat

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