An investment holdings company recently acquired a 190-unit apartment complex in the state of Massachusetts for $56 million. The per-unit purchase is about $295,000 for each unit. According to the investment holdings company, part of the reason for the purchase is that this area of Massachusetts features an in-demand commercial real estate market that has been attracting attention both internationally and domestically.
The holdings company that bought the complex and the seller of the property, a developer, closed on it in mid-April. The company that bought it said it believes that only modest improvements are needed at the property. With the combination of these changes and the company’s marketing and management approach, the property is expected to be in a good position to take full advantage of the positive changes happening in the area.
The investment holdings company has historically invested in industrial and warehouse spaces and is now dabbling in the apartment market. The apartment market is especially promising because many people have been choosing to rent during the past few years. In fact, the investment holdings company said that homeownership has waned in popularity compared to renting.
Although the purchase of the apartment complex went well, not every commercial real estate transaction does. In fact, making a mistake during the real estate purchasing process can be immensely costly down the road from a financial standpoint. An attorney in the state of Massachusetts can offer step-by-step guidance during the purchase of real estate so that any necessary changes and possible obstacles in the purchase agreement are addressed before the deal is closed.
Source: everettindependent.com, “Wellington Parkside Sells for $56 Million“, Seth Daniel, April 29, 2017