Source: Home Properties / #Multifamily #Apartments
ROCHESTER, NY - Home Properties, Inc. announced that on December 18, 2013 it purchased for $40.3 million the Middlesex Crossing apartment community in Billerica, Ma. Middlesex Crossing (252 units) was purchased for $40.3 million in cash, which equates to approximately $160,000 per apartment unit.
At closing, Middlesex Crossing was 96.0% occupied at monthly rents averaging $1,420. The property is located 18 miles northwest of Boston at the Route 3 and Concord Road interchange within minutes of Route 3A, I-95/Route 128, and I-495. Middlesex Crossing is three miles from the MBTA North Billerica Commuter Rail Station providing direct access to Boston's North Station.
Built in three phases between l969 and l974, Middlesex Crossing consists of 11 three-story brick garden-style apartment buildings. There are four studio units, 63 one-bedroom units and 185 two-bedroom units, with an average size of 760 square feet. Buildings are of wood-frame construction with poured concrete foundations and asphalt shingle hip roofs. Units have private patios or balconies. The property has gas-fired central boilers in each building with radiant baseboard distribution. Each unit has separate through-wall air conditioning units. Hot water is supplied by central storage tanks off boilers. Residents are responsible for paying their own electric utility costs. Common area amenities include a laundry facility in each building, a community recreation building with fitness center, outdoor swimming pool, playground, dog park and barbeque area.
During the first three years of ownership, the Company expects to spend a total of approximately $3.7 million, in addition to normal capital expenditures, to upgrade individual units on turnover by renovating kitchens and baths; replace lighting, interior doors and original windows; correct deferred maintenance and improve curb appeal by replacing signage, landscaping, concrete, roofs, balcony railings, pool equipment/ furniture, and exterior awnings. The Company also plans to redesign the leasing center/recreation building. Management anticipates a 6.4% first year capitalization rate after allocating 2.7% of rental revenues for management and overhead expenses and before normalized capital expenditures.