Jones Street Secures Nearly $180 Million For 3 Properties – Multifamily Real Estate News

Rendering of 75 Canal St. in Manchester, NH Image courtesy of Jones Street Investment Partners

Jones Street Investment Partnersa Boston-based private equity real estate investment firm, has secured $179 million in construction financing to develop three luxury multi-family communities in Maine and New Hampshire.

Loans for real estate in Kittery and Brunswick, Maine, and Manchester, NH also allow Jones Street to expand its portfolio in key secondary markets in the Northeast, which are experiencing severe supply constraints and strong rental growth.

Founded in 2014, the firm focuses on multifamily investments in the Northeast and Mid-Atlantic regions of the United States. The portfolio currently consists of 4,389 residential units with approximately $1.3 billion in assets under management and $360 million in invested equity. The properties include Town Walk at Hamden Hills, a 764-unit community in Hamden, Connecticut, a suburb of New Haven, Connecticut, acquired in August 2018 by a subsidiary of Baker Properties in an off-market transaction for $136.5 million dollars was acquired. Last year, Jones Street completed more than $850 million in transactions, including four acquisitions in Connecticut and Massachusetts valued at $310 million. There were also three divestitures in Maine and Massachusetts that sold for more than $294 million.

Matt Frazier, founder and CEO of Jones Street Investment Partners, said in a prepared statement that each of the three new properties being developed is consistent with the company’s emphasis on long-term, cash-flow investment strategies that have the potential to deliver attractive risk-adjusted returns achieve . He added that the ability to secure the loans on attractive terms is a testament to Jones Street’s relationship with the banks, as well as the quality of the business plans and the company’s track record.

Loans, real estate details

The largest financing package is for the development of Seacoast Residences, a 282-unit apartment building at 76 Dennett Road in Kittery. Jones Street received a $70 million adjustable rate loan from Key Bank and a $7.9 million preferred stock investment from a major investment manager for the project. trade observer The loan term is 36 months with two 12-month extension options.

The five-building property is located off I-95 and just over the Portsmouth, New Hampshire border. Seacoast Residences is scheduled for delivery in early 2024, Seacoast Residences will feature luxury units, a resort-style swimming pool, sun deck, fitness center, and on-site nature trails and dog park. It is located in an area with limited rental supply and close to major employment hubs. Numerous national and regional companies operate in coastal New Hampshire and Southeast Maine, including Andover Healthcare, Portsmouth Naval Shipyard, CSI Engineering, Northwestern Mutual and Sun Life Financial.

The other two developments are in Qualified Opportunity Zones. The larger of the two financing agreements is a $65.1 million loan from Berkshire Bank for Jones Street for the development of a 250-unit apartment building at 75 Canal St. in downtown Manchester. Construction work is expected to be completed by summer 2024. The property will consist of studios, one, two and three bedroom apartments and approximately 2,000 square feet of retail space on the ground floor. Community amenities include a clubhouse with full-service kitchen and game room, fitness center, business center and two outdoor courtyards. Manchester has low unemployment rates, high affordability and strong economic growth, which has resulted in high occupancy rates and strong rental growth for multifamily properties in the area. Major employers include Oracle, TD Bank, New York Life and Southern New Hampshire University.

Bangor Savings Bank provided a $36 million loan to Jones Street to develop a 181-unit gated community on Admiral Fitch Avenue in Brunswick. Scheduled for delivery in late 2024, the property is located at Brunswick Landing, a former naval base that is being revitalized and includes nearly 2 million square feet of commercial and industrial space. Located approximately 3 miles from downtown Brunswick and approximately 30 minutes from downtown Portland, Maine, the property is expected to benefit from a strong job market. Regional and national employers in the area include LL Bean, VividCloud and General Dynamics Bath Iron Works and Bowdoin College.

Colliers International arranged the construction loans for Jones Street’s Brunswick and Manchester projects and preferred equity investment for the Kittery project.