LEXINGTON, Mass. — Affinius Capital LLC and Axonic Capital LLC have provided a $45.8 million construction loan to finance the ground-up development of a new 130-unit Class A multifamily property at 7 Hartwell Avenue in Lexington.
The five-story development is being undertaken by Dinosaur Capital Partners, a Boston-based real estate investment and development firm focused on multifamily housing in the Boston metropolitan area. The project will include 130 residential units, approximately 400 square feet of retail space and a range of resident amenities.
The financing marks the sixth transaction completed through the strategic partnership between Affinius Capital and Axonic, which was established to provide mid-market first-mortgage financing for new development projects.
Located at the intersection of Hartwell Avenue and Bedford Street, 7 Hartwell Avenue will be positioned within the Route 128 employment corridor, providing residents with access to major suburban employment centers as well as downtown Boston, approximately 12 miles to the southeast.
“As one of Boston’s most established suburbs, Lexington has long been supply-constrained making it an ideal market for this type of Class A multifamily development,” said David Greenburg, co-head of debt originations at Affinius Capital. “Our platform with Axonic continues to deliver the kind of mid-market financing that experienced developers like Dinosaur Capital Partners need to bring projects like 7 Hartwell Avenue to life.”
The development will include 110 market-rate apartments, representing 85% of the units, along with 20 affordable apartments, or 15% of the total.
The project is planned as one of the higher-quality multifamily assets in the Lexington market, with high-end finishes and state-of-the-art appliances in the residential units. Planned community amenities include a fitness center with a yoga studio, a resident lounge and a co-working lounge.
The development comes as demand for housing in the Boston metropolitan area remains strong, while established suburban communities such as Lexington continue to face constraints on new multifamily supply.
“The Boston metro region continues to see high demand, creating opportunities to pair flexible financing with experienced developers such as Dinosaur Capital Partners,” said Erik Nygaard, principal and portfolio manager at Axonic Capital. “We are excited to see progress on the project as the team builds a top-quality multifamily asset that offers attractive options and convenience to this growing suburban area.”
The $45.8 million loan is the latest transaction resulting from the Affinius-Axonic strategic partnership, which is focused on financing new development projects in the mid-market segment.
For Dinosaur Capital Partners, the construction financing provides capital for the next phase of a project designed to add both market-rate and affordable housing to Lexington while introducing new retail and amenities to the Hartwell Avenue corridor.
Once completed, 7 Hartwell Avenue will add 130 apartments to the local housing stock, including 20 affordable units, while offering residents access to employment centers along the Route 128 corridor and transportation connections to Boston and surrounding communities.
