Fall River, MA — Cornerstone Realty Capital recently arranged $12.6 million for the acquisition of two apartment properties in Fall River, MA. Between the two there are a total of 155 units with one property consisting of 107 units and the second property consisting of 48 units.
The unit mix between the two properties contains (22) one-bedroom, one-bathroom units, (58) two-bedroom, one-bathroom units, (70) two-bedroom, one-and-a-half-bathroom units, (1) three-bedroom, one-and-a-half-bathroom unit, and (4) three-bedroom, two-and-a-half-bathroom units. The first property is a renovated historic cotton textile mill with 15 different floor plans ranging in size from 721 square foot units to 1,761 square foot units. The property provides ample parking with 205 surface spaces and 26 garage spaces available to tenants.
Each unit features an electric range stove, dishwasher and in-unit washer and dryer hook ups. The property’s amenities include a resident lounge, indoor swimming pool, fitness center, patio area with a grilling station, a community garden and additional storage space free of charge. The second property consists of four buildings. Here, the units on the second and third floors feature private balconies while all units feature electric range stoves, a dishwasher and full refrigerator. The property also includes ample parking with 79 surfaces spaces available to tenants, about 1.65 spaces per unit.
Located in Bristol County, Fall River was once the leading textile manufacturing center of the country and was home to the largest printing company in the world. The majority of the historic mills throughout the city have been transformed into residences or artist studios, giving the city an old New England feel with a modern touch. Both properties are located along the Taunton River, home to a wide range of biodiversity, walking trails and historic sites.
Fall River is known as the tenth largest city in Massachusetts, with many residents moving to the area for its affordable cost of living, its proximity to a number of major employment areas and its diverse range of amenities. Both properties sit a short drive away from Interstate 195 with connections to Route 79 and Route 24 leading to two major metropolitan areas: Providence, approximately 20 minutes away, and Boston, just under an hour away. Bus stops are located in front of each property, which provide access to many of the area’s amenities and major employers, such as Amazon’s fulfillment center, one of the largest employers in the state. Within minutes of both properties are a Shaw’s Supermarket, a CVS Pharmacy and a number of dining options, making them both great locations for those looking to reside in Fall River.
Patrick Brady, Vice President of Cornerstone, commented that “The market for lending in Fall River is vibrant and very competitive. The portfolio required two separate executions, as the sponsors had different financing goals at each asset. Border City Mills was well kept by the previous owner, and we were able to secure 80% of the Purchase, a very low 10-year fixed rate through an interest rate swap with 3 years of I/O followed by 30-year amortization. River Grove stands to improve from the sponsors implementing a value-add program, which we were able to secure 80% of the Purchase plus 100% of the planned capital improvements, a competitive 7-year fixed rate balance sheet product with 3 years of I/O, followed by 30-year amortization with no prepayment penalty. Both executions were underwritten, closed and funded simultaneously for the portfolio acquisition, and have provided the sponsors the capital structure they need to execute their business plan.”
