DANVERS, MASS. — The DSF Group, a Waltham, Mass.-based real estate investment and development firm, has purchased Avalon Danvers for $108.5 million, or $250,500 per unit. The sales price is the highest price recorded for a single-property multifamily transaction in Massachusetts so far this year, and is the single-largest transaction that the Southern Essex County Registry of Deeds has ever recorded.
The DSF Group purchased the 433-unit asset from AvalonBay Communities Inc., a publicly traded real estate investment trust (REIT) based in Arlington, Va., that develops, manages and acquires multifamily properties.
Institutional Property Advisors (IPA), a brokerage division of commercial real estate services firm Marcus & Millichap, has arranged the sale of Avalon Danvers. IPA Boston executive director Richard Robinson, along with associate directors Philip Lamere and Jennifer Athas, brokered the sale.
“Avalon provided us with a unique opportunity to identify the right investor for this extraordinary asset,” says Robinson. “Our long experience in the Boston-area marketplace keeps us prepared to provide clients with the data they need to make informed investment decisions and close transactions quickly. These two abilities proved to be key elements in the disposition of Avalon Danvers.”
As part of the sale, the asset will be renamed Halstead Danvers, according to The Boston Globe. Halstead is DSF Group’s signature brand.
Located approximately 20 miles north of downtown Boston, Avalon Danvers is a remodeled 19th century hospital that features period architecture and a mix of fully renovated brick buildings and new construction. Converted to apartments in 2006, the property is located on 36.7 acres at 1101 Kirkbridge Drive near U.S. Route 1 and Interstate 95.
Apartments at Avalon Danvers feature generous closet space, gourmet kitchens with contemporary cabinetry and high-end appliances, washers and dryers, sustainable plumbing fixtures and HVAC equipment, with most units offering private balconies and/or patios. Community amenities include an outdoor swimming pool, an indoor basketball court, a fitness center with children’s playroom, a social lounge with a billiards table and a landscaped barbecue and picnic area.
“The Avalon Danvers sales price is proof of the strong appetite institutional investors have for well-located suburban multifamily properties north of Boston,” says Lamere of IPA Boston.
As of March 31, 2014, AvalonBay Communities owned or held a direct or indirect ownership interest in 276 apartment communities containing 82,374 apartment homes in 12 states and Washington, D.C., of which 31 communities were under construction and five communities were under reconstruction.
Since 2000, the DSF Group has invested more than $2.5 billion in 5 million square feet of commercial real estate, primarily located in the Northeast between Washington, D.C. and Boston.
— John Nelson