BOSTON – Marcus Partners, a real estate investment, management and development firm, announced the strategic acquisition of 1943 Dorchester Avenue and 4236 Washington Street in Boston for $35.8 million.
The two buildings, totaling 107 units, will be owned and managed in a joint venture with the John M. Corcoran and Company, one of the region’s leading owners, developers and managers of multifamily housing.
This purchase marks the firm’s first residential investment in Boston’s urban core, as well as the final investments acquired on behalf of Marcus Capital Partners Fund II, LP. The assets are located in Dorchester and Roslindale, two emerging neighborhoods in the City of Boston that offer access to public transportation and walkable neighborhood amenities. The properties appeal to renters seeking newer Class A rental product in an urban setting at an attractive discount to downtown rental rates.
“This investment represents a unique opportunity to acquire newly constructed assets at a discount to today’s replacement cost. Rising construction costs that are making new construction more difficult to pencil, combined with continued job growth that is further driving demand, has created an attractive supply/demand dynamic for owners of apartment buildings in our market,” said Ryan McDonough, Marcus Partners’ Boston Regional Director. “This portfolio offers significant opportunity for improvement by adding the expert management and local leasing presence of Corcoran’s affiliate, Corcoran Management Company.”
This portfolio acquisition marks the second project between Marcus and Corcoran. The two firms also partnered on “The Residences at 1500 Main Street” in Weymouth, MA, where they will deliver 237 units of multifamily housing starting in October 2020. In addition to its proximity to numerous neighborhood amenities, this project is located adjacent to an MBTA Commuter Rail station and also offers quick access to Route 3, offering commuters multiple options for transit to downtown Boston.
