BOSTON– Marcus & Millichap, a commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Perry Street Apartments, a 3-unit apartment property located in Somerville, MA, and 16 Grove Street, a 6-unit apartment property located in Providence, RI.
According to John Horowitz, regional manager of the firm’s Boston office, the assets sold for $1,835,000, and $1,238,000 respectively. Matthew Pierce, senior associate, and Harry Verenis, associate, in Marcus & Millichap’s Boston office, had exclusive listings to market both properties on behalf of the sellers. Pierce and Verenis also procured the buyers.
Pierce explains, “We partnered with the Somerville owner to show how they were able to 1031 exchange into more units, double their income, and be debt-free in the end. We were able to put their property under agreement in 5 days after one round of tours with qualified buyers and $40k over the asking price, while at the same time negotiating an accepted offer on their replacement property, 16 Grove Street. Running the whole process from start to finish through Marcus & Millichap was a great win for the seller in accomplishing their goals and all other parties involved.”
A 1031 Exchange allows investors to sell a property and reinvest the proceeds into a new property, deferring all capital gains taxes. In turn, investors can grow their portfolio, and, in this case, secure stake in a new market.
“I think this deal really demonstrated the strength of our marketing platform, by having an out-of-state buyer exchange out of his property in Boston and into more units in Providence. This is just one of many deals in Rhode Island where the buyer came from another state. The Rhode Island market offers investors a higher yield coupled with an extremely strong rental market driven by universities and traditional work-force housing.” says Verenis.
Built in 1910, the Grove Street Apartments are located at 16 Grove St in Providence, RI, consisting of two buildings with six apartments total. All units have been recently renovated with granite countertops and in-unit laundry. Additionally, the property offers rare ample off-street parking with a 3-spot garage onsite. 16 Grove Street is located in the heart of Federal Hill, and less than a mile to downtown Providence, universities, restaurants, and the AMTRAK station offering an easy commute to Boston.
Also built in 1910, the Perry Street Apartments located at 49-51 Perry Street in Somerville, MA is a triple decker style property made up of 2 four-bed, one-bath apartments, and 1 three-bed one-bath apartment. Perry Street offers modern kitchens and large bedrooms with ample closet space. The property also features proximity to public transit, as well as a short distance (2.5 miles) to downtown Boston.