DEDHAM, MA-Fairfield Dedham LP, a subsidiary of Atlanta-based BVT Equity Holdings Inc., has closed the sale of Station 250, a 285-unit class A, transit-oriented apartment community just outside Boston to an Archstone-sponsored partnership for $94.25 million, GlobeSt.com has learned exclusively. The news builds upon a previous announcement over the summer that Archstone would be acquiring the asset and renaming it as Legacy Place.
Michael Sauer, senior vice president of development at BVT Real Estate Development, tells GlobeSt.com that competition was “intense” for the property, noting that 15 bidders threw their hats in the ring for the asset. “But they [Archstone] came in very high,” he says. “It was a very smooth and clear and smooth transaction with them.”
The acquisition news broke shortly after Archstone filed a $100-million IPO by Lehman Brothers Holdings, which outlined that acquiring class A multifamily in gateway cities was a core part of the company’s growth plan. As GlobeSt.com previously reported, the building is across from the Legacy Place lifestyle center, which includes high-end retailers like Apple, Whole Foods Market and Showcase Cinema de Lux. It is also adjacent to the Dedham Corporate Center MBTA station, which offers commuter rail service to downtown Boston.
“You can commute to Boston’s South Station in 20 or 25 minutes,” Sauer says. The property also offers direct access to I-95/Route-128, which connects to the Route 128 West office market. Office tenants in that market include Biogen Idec, Texas Instruments, IMB, Agilent Technologies, Novell, Genzyme and AstraZeneca. “It is not only about the project itself in terms of amenities, but this prime location, combined with the public transportation system, works because it is literally within distance to everything.”
Station 250, which was part of a BVT residential fund, also includes Fairfield at Addison Circle, a 414-unit upscale apartment community 14 miles north of Dallas that was recently refinanced. BVT’s residential fund program totals 10 class A properties located in strong markets throughout the United States.
Sauer says BVT is currently seeking more multifamily opportunities as equity partners in joint venture developments on behalf of investment partners. The company is targeting and investing in Boston, the Washington, DC-area, Raleigh, Dallas, Austin, Houston, Las Vegas and Phoenix. “We are currently very actively seeking joint venture development opportunities in the New England area,” Sauer says, explaining his next moves. “We have three developments in total in Boston and all three over the years were successful, but we are looking at high-barrier to entry markets.”
In a release, Archstone CEO Charles E. Mueller Jr. calls the renamed Archstone Legacy Place “a nice addition” to his company’s Boston-area holdings, due to “its location near entertainment venues and transportation options with access to major employment centers.” Archstone’s other properties in the metro area include three complexes in Cambridge; two each in Quincy, Waltham and Boston itself; and one in Watertown, MA. The IPO filed by Lehman to take Archstone public cites Downtown Boston as one of the core markets it will focus on for acquisitions and development.
BVT’s total residential portfolio over the last eight years had total of 11 projects with 4,500 apartments.
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