- What Brookfield has listed four apartment buildings in Cambridge, Mass.
- Why Deal is pitched as an opportunity to buy high-performing apartment properties at a significant discount to replacement costs
- What next A trade at the estimated US$280m price would be among the biggest ever in the Boston market
Brookfield is shopping a four-property apartment portfolio in Cambridge, Mass., that could see bids top US$280m ($381.6m), Green Street News can reveal.
The 531-unit package, in the Kendall Square neighborhood, is 97% leased. Brookfield owns the value-added portfolio via leasehold interests and is pitching it as an opportunity to purchase high-performing apartment properties at a significant discount to replacement costs in one of the most prestigious investment markets in the U.S. The underlying land is owned by the Massachusetts Institute of Technology.
Walker & Dunlop has the sales assignment, but it’s unclear whether bids will be accepted on individual properties. The whisper price translates to US$527,000/unit.
If the package trades, it would be among the biggest apartment sales ever in the Boston market, according to Green Street’s Sales Comps Database. There have been just four deals of at least US$280m, and only one larger than that in Cambridge.
The offered properties are within four blocks of one another near MIT, Harvard University and the employment centers of Kendall Square and East Cambridge. The area has a large cluster of life-science companies due to its proximity to the universities.
Brookfield acquired the properties in 2018 as part of its US$11.4bn takeover of office, retail and residential real estate operator Forest City Realty Trust. At that time, Forest City’s biggest asset in terms of net operating income was University Park at MIT, a 27-acre, mixed-use development that included the four apartment complexes — which are collectively known as the Residences at University Park.
University Park at MIT was developed in phases from the late 1980s through the mid-2000s. The project was a collaboration between Forest City and MIT, and transformed a former industrial area.
The offered properties are:
- 100 Landsdowne: The 203-unit building, at 100 Landsdowne Street, was constructed in 2005. The 18-story tower houses one- and two-bedroom units, including penthouses. The listed rent for an available 982 sq ft, one-bedroom unit is $4,675.
- KBL (Kennedy Biscuit Lofts): The 142-unit building, at 129 Franklin Street, was constructed in 1990. The four-story property has studio to three-bedroom units. It’s listed on the National Register of Historic Places and was once home to the Frank A. Kennedy Steam Bakery, which produced Lorna Doone and Fig Newton cookies. Rent for an available 930 sq ft studio is US$3,465 per month.
- 91 Sidney: The 10-story building, at 91 Sidney Street, was erected in 1990. It has 135 one- and two-bedroom units. Rent for an available 783 sq ft, one-bedroom apartment starts at US$3,905.
- Loft23: The 51-unit building, at 23 Sidney Street, was finished in 2005. The six-story property has studio to two-bedroom loft-style apartments, with open-concept floor plans and floor-to-ceiling and wall-to-wall windows. The listed rent for a 742 sq ft, one-bedroom apartment starts at US$3,605.
According to marketing materials, about 15% of the units are designated as affordable. Residents have access to amenities across the four buildings including fireside lounges, community gardens, outdoor terraces and decks, work lounges, conference rooms, catering kitchens, two fitness centers, garage parking and car-charging stations.