By Keith Loria, Contributing Editor
Mack-Cali Realty Corporation has acquired Alterra at Overlook Ridge IA in Metro Boston for approximately $61.3 million and has also agreed to acquire Alterra at Overlook Ridge IB for approximately $88.7 million from a joint venture that includes Prudential Insurance Co. of America.
Combined, the multi-family properties consist of 722 units in the master-planned community of Overlook Ridge in Revere and Malden, Mass, with Alterra at Overlook Ridge IA containing 310-units and Alterra at Overlook Ridge IB home to 412 units.
Mack-Cali’s recently acquired Roseland subsidiary developed Alterra IA in 2004 and Alterra IB in 2008 for the venture, and has managed the properties since completion. The properties were 97.2 percent leased at the time of the sale.
“The acquisition of Alterra perfectly complements our recent acquisition of the real estate development and management businesses of Roseland and its imminent development interests at Overlook Ridge,” said Mitchell E. Hersh, Mack-Cali’s president and CEO. “We expect to place mortgage financing on the property that will provide a cash on cash yield in excess of 9 percent.”
Both are Class A properties with resort-style amenities, including heated outdoor pools, fitness centers, lounges with billiards, business centers, cinema screening rooms and direct access parking garages.
“We were attracted to this acquisition because these premier assets represent the finest in luxury, location, and amenities, and are consistent with the highest quality properties in the marketplace, as well as the opportunity for a value-add component,” said Marshall B. Tycher, Roseland’s co-president. “With a planned interior cosmetic modernization we are confident we can command today’s higher market rents.”
The Overlook Ridge community is located just five miles north of downtown Boston and is nearby to many restaurants, shopping and attractions. It also features superior access to a vast highway network, direct access to MBTA bus service, as well as private shuttle service.
In addition to managing Alterra, Roseland developed and manages the adjacent Quarrystone and is actively constructing the 371-unit Highlands at Overlook Ridge in joint venture with UBS.
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