BOSTON, MA– Colliers International Capital Markets announced that it has arranged permanent financing in the amount of $59,000,000 for One North of Boston II (“ONB II”), a fully-amenitized, 222-unit, Class A multifamily property located at 150 Heard Street in Chelsea, Massachusetts.
Colliers worked exclusively on behalf of the borrower, a Boston-based joint venture between Redgate Capital Partners, LLC and TransDel Corporation, to secure the ten-year, fixed-rate Fannie Mae DUS® Large Loan through an affiliate of Arbor Realty Trust, Inc. (NYSE:ABR). The Colliers Capital Markets team representing the borrower was led by EVP and National Debt & Equity Platform Leader Jeff Black, Colliers Boston Co-Chairman Kevin Phelan, and Assistant Vice Presidents Sean Burke and Bryan Koop.
Located adjacent to the 230-unit One North of Boston I (“ONB I”) development, ONB II offers transit-oriented, amenity-rich neighborhood living with direct access to downtown Boston, Cambridge, and Logan International Airport by way of a 5-minute walk to Chelsea Station – which is the only stop in Metro Boston to enjoy both South Station (via Silver Line 3) and North Station (via MBTA Commuter Rail) connectivity.
Delivered in 2016, the fully stabilized, 6-story property totals 182,581 net rentable square feet comprised of a mix of studio (2), one-bedroom (161), two-bedroom (44), and 3-bedroom (15) units. Unit finishes include designer Italian cabinets; quartz counters; stainless steel/energy star appliances; bamboo and wide plank flooring; Nest thermostats; in-unit washer/dryer; views of the Boston skyline; Dennis Duffy designer kitchens & bathrooms; oversized windows; and walk-in closets. Interior amenities provide areas for lounging, socializing and fitness while addressing the market need for new urban, amenity-rich housing with easy commuting access.
The Property is located in an area home to several of Greater Boston’s top employers including Encore Boston Harbor, the Massachusetts Information Technology Center, and Massachusetts General Hospital. There are over 204,000 daytime employees within a 3-mile radius of the Property.
The Chelsea/Everett/Revere Multifamily submarket vacancy rate fell to an all-time low in Q4 2019 to 5.0% and the city of Chelsea is outperforming its submarket, posting a 3.4% vacancy rate. Despite several other Class A projects being added to the market, ONB II has been able to attract and retain tenants maintaining an above-market occupancy rate and durable cash flow.
“Our team, along with our partners at Arbor and Fannie Mae, did an exceptional job executing this transaction amidst the uncertainty of a rapidly unfolding Black Swan event,” said Jeff Black, an EVP at Colliers and a member of the firm’s capital markets board of advisors. “I am deeply appreciative of the trust and confidence that Redgate and TransDel placed in Colliers. Certainty of execution was paramount, and the effort, skill, expertise, and responsiveness of all parties involved resulted in a record-breaking effort punctuated by a nine-day application to close. Colliers Capital Markets has continued to launch and close new deals during the pandemic and this transaction is reflective of the team, brand, and capabilities we have built in our organization.”