Two Boston apartment buildings are being pitched as a value-added play.
The listing includes a 54-unit building at 49 Worthington Street, near the Longwood Medical Area, and a 55-unit property at 16 Westland Avenue, near where the Back Bay and Fenway neighborhoods meet. Both are fully occupied.
The offering is expected to attract bids north of $50 million, or $459,000/unit. That would translate to a 4.5% initial annual yield.
Coppola Management Real Estate, a Boston firm that has owned and managed both properties for more than 40 years, is accepting bids on the buildings separately or as a package via local brokerage Boston Realty Advisors.
The five-story properties are about a mile apart. The one on Worthington Street, built in 1920, has studios and one- and two-bedroom units. The Westland Avenue property, built in 1910, has a similar mix plus one three-bedroom unit.
Roughly 25% of the units have been renovated in recent years. The marketing pitch highlights the potential to improve the others and boost rents.
Both properties benefit from their proximity to employment centers and shopping districts.
The Longwood Medical Area has a cluster of hospitals and medical schools that drives demand for apartments in the area. Back Bay is an affluent neighborhood with an average household income of $205,000. Both buildings are close to MBTA rail stations.
Boston typically is a quiet market for multi-family sales, due in part to limited Class-A inventory. But construction of luxury units and increasing demand from institutional investors have boosted valuations, driving up annual sales volumes to record levels. Trades of large properties this year already total $692.4 million, according to Real Estate Alert’s Deal Database, which tracks transactions of at least $25 million. That’s well above the $620 million record set in 2017, and 23% higher than the full-year 2018 tally of $563.5 million.