Suburban Boston Multifamily Development

Transaction description

Jason Roth of PSRS recently advised a private equity group in their search for construction takeout financing on a new multifamily development in suburban Boston. The $55.1 MM loan request was placed with a Life Insurance Company.

Located in a Qualified Opportunity Zone, the development includes over 190 market-rate apartment units and 14,000 RSF of ground-floor retail space. The property was under construction throughout the pandemic and received its first certificate of occupancy this month in parallel with the financing.

Roth, a Boston native, stated, “When we initially started our search process back in Q2 of 2020, the first round of COVID-19 lockdowns had just been put into place by Governor Baker. Although multifamily performance in Massachusetts remained stable during the beginning of the pandemic, many lenders questioned whether this was a result of federal assistance or strong market fundamentals. Maintaining a competitive process from start to finish was paramount as lender sentiment was changing daily”.

Roth and his team at PSRS helped the client explore numerous deal structures including Bridge to Agency, Bridge to HUD, and structured loans from various national life insurance companies.

“By the time the final lender was selected in November of 2020, investors and lenders had begun to realize that multifamily was one of the most resilient asset classes throughout the pandemic. As a Boston native, it was rewarding to work with a great sponsor on a deal in my home state. As the residual effects of COVID-19 continue to play a role in the capital markets we anticipate helping more multi-family developers navigate these challenges throughout the country”, Roth stated.