BOSTON — Carmel Partners, a San Francisco-based multifamily investor, has purchased LUKA on the Common, a 30-story apartment high-rise in downtown Boston. Northern Virginia-based AvalonBay Communities sold the 398-unit property, which was formerly known as the AVA Theater District.
Carmel Partners utilized a $137.3 million Fannie Mae acquisition loan to fund the purchase. Jeff Burns, senior managing director of multifamily finance at Walker & Dunlop, originated the five-year, interest-only loan on behalf of the buyer. The agency loan features an early rate lock.
“Boston’s multifamily fundamentals are among the strongest in the nation, driven by limited existing and future supply,” says Burns. “The housing scarcity has impacted both rent growth and the for-sale condominium market [in Boston] and has enabled us to refinance successfully alongside the team at Carmel.”
The sales price was not disclosed, but the Boston Business Journal reported that the property traded for $212 million. Walker & Dunlop’s investment sales team in Boston, which brokered the transaction, disclosed it was the highest price paid for an apartment complex in the city in more than a year.
Lee Bloch, partner at Carmel Partners, says that LUKA on the Common has an “enviable location” as it is about a 10-minute walk to all core Boston neighborhood transit lines. Built in 2016, the property is located at 45 Stuart St. near Boston Common park, the Charles River, Boston Harbor and the city’s theater district.
The LEED Gold-certified apartment community features a sky pavilion, modern fitness center, concierge services, TV/entertainment lounge, bike storage and a package delivery system, among other amenities. According to Apartments.com, residences range in size from 469 to 1,352 square feet and rent between $3,050 to $4,520 per month.
Walker & Dunlop (NYSE: WD) has closed more than $51 billion in U.S. multifamily sales volume since 2021. The firm is also one of the top capital providers in the U.S. multifamily sector, lending over $20 billion for multifamily properties in 2023 alone.
Additionally, Fannie Mae reported that Walker & Dunlop was the agency’s No. 1 DUS (Delegated Underwriting and Servicing) lender in 2023.
Carmel Partners was founded in 1996 and has several regional offices, including in Northern and Southern California, New York City’s metropolitan area, Seattle, Denver, Hawaii and Washington, D.C.
— John Nelson