Saugus apartments sell for $94M

SAUGUS – Although it is considered normal in the world of commercial real estate, the $94 million sale of the Residences at Stevens Pond is a novel transaction for the North Shore area.”This is the biggest sale I’ve ever had in Saugus,” said Registrar John O’Brien of the Southern Essex District Registry of Deeds.The nine-building luxury apartment complex at 1 Founders Way was sold by Dallas-based Invesco Advisers on July 31 to JRK Investors in Los Angeles. In addition, JRK was approved by Berkadia Commercial Mortgage for a 10-year loan of $75.6 million.O’Brien added that even if the property at the former Hilltop Steak House was sold, it would pale in comparison to this transaction. The property’s assessed value, according to town records, is $8.2 million.However, according to the Saugus Assessor’s Office, the 82.5-acre Residences at Stevens Pond is valued at $60.5 million as of June 30. O’Brien explained that the assessed value of a commercial property is typically lower than the final sale price.The only other larger sale in the area took place on July 1 when Avalon Danvers was purchased by the DSF Group in Waltham for $108.5 million.”These are like telephone numbers, like Monopoly money,” O’Brien said of the multimillion-dollar sale prices.James Bloomingdale, JRK’s senior vice president and head of acquisitions, explained that a $94 million purchase is not unusual for his company, as it currently carries $1 billion in equity.”Bigger deals work well for us,” he said.Although a new name has not been decided upon, Bloomingdale said JRK plans to reposition and renovate the complex, specifically the clubhouse and the 326 units, in an effort to make it “unique to the market.””It’s a beautiful asset, and we’re going to make it even more beautiful,” he said.A new player in the Boston market, the Residences at Stevens Pond is JRK’s third transaction in Massachusetts. The company purchased the One Webster apartments in Chelsea earlier this year and the Royal Crest Estate in Fall River last year.Representatives from Invesco were not available for comment.