128-Unit Complex Fetches $7M Plus

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WEST WARWICK, RI-A Boston real estate firm has acquired a 128-unit apartment complex here for $7.5 million after the seller shaved $1 million off the asking price.

The Mayo Group acquired Quaker Towers, a fully leased, seven-building complex at 337 Cowesett Rd., months after it was put on the market for $8.5 million by the undisclosed seller, says Robert Tito, with NAI Hunneman Commercial’s Boston office.

“It was on the market for quite a while but the owners’ expectation on value became less so they reduced the price,” says Tito, noting that the price reduction created “a very good price per unit” for the buyer.

“The gross income at the time of sale was $1.2 million with a NOI of $621,000,” Carl Christie, also with NAI Hunneman Commercial, says in a statement. “With a cap rate of 8% and favorable financing in the amount of $5.7 million assumed by the buyer, the deal was a good fit for the Mayo Group as it continues expanding its impressive residential portfolio.” Tito and Christie represented the seller and procured the buyer in the transaction.

The class B complex is comprised of 36 studio, 58 one-bedroom and 34 two-bedroom units. The new owner is expected to put between $450,000 and $500,000 in capital improvements into the buildings, he adds.