Eastern Union has secured $83.8 million for the acquisition of a two-property multifamily portfolio encompassing a total of 536 units in Amherst and Sunderland, Mass. Boston-based Northland sold the properties after nearly three decades of ownership to an undisclosed buyer. The financing was provided through Newmark, with a combined loan-to-value ratio at 75%.
The financing deal includes a $44.8 million 10-year, floating-rate loan at a spread of 2.83 % and one-month SOFR for The Boulders, a 256-unit community st 165A Brittany Manor Drive in Amherst, Mass. The financing allows for interest-only payments in the first four years. Built in 1974, the community encompasses two-bedroom units, averaging 844 square feet.
Eastern Union also closed a $39 million loan with the same terms for Cliffside Apartments, a 1976-built property in Sunderland, Mass. Located at 248 Amherst Road, the property includes a mix of one-, two-, three-, and four-bedroom units, as well as townhouse units, averaging 532 square feet.
Massachusetts Multifamily Market
While markets in the Northeast receive less attention compared to metros in the Southeast and Southwest, the region is showcasing solid market fundamentals. The average rental price for a one-bedroom apartment in Massachusetts reached $2,343 in May, up almost 2% compared to the previous month, and 4% since the beginning of March, according to a report from ApartmentAdvisor.com
Cambridge is the most expensive city in the state, with the median rent for a one-bedroom apartment at $2,789 per month, while the least expensive city was Fall River, with rents at $1,318 for the same unit type.