Portland affordable housing firm pays $65M for Mass. property
Courtesy / Silver Street Development Corp.
Silver Street Development Corp., in partnership with MassHousing, acquired this 250-unit development in Salem, Mass., and plans extensive renovations in a deal worth $65 million.
Silver Street Development Corp. acquired a 250-unit development in Salem, Mass., in a deal worth $65 million.
The deal, for Pequot Highlands, includes $20 million earmarked for a large-scale rehabilitation.
Silver Street, which is based in Portland, will double the number of units designated for low-income tenants, from 100 to 200, aided by tax-exempt bonds issued by MassHousing.
Silver Street received an unspecified equity investment from Boston Financial Investment Management.
Pequot Highlands, which dates to 1971, at one time was known for its amenities, but in recent years its brick facade has significantly deteriorated, Silver Street said in a press release.
It will spend $11 million to replace the red brick facade with insulated, energy efficient metal paneling and windows, which will cut energy use by 10%. Another $9 million will be committed to upgrading common and private space within the complex.
The firm said 125 of the units, or half, will be subsidized by the continuation of Section 8 housing vouchers through a 15-year contract with Salem Housing Authority. Overall, 200 of the 250 units will be affordably restricted through a tax-credit program that will expire in 2098.
“We could not have closed this complex acquisition without the deep understanding, commitment and support of Mass Housing, DHCD, the Salem Housing Authority and Boston Financial,” said Silver Street principal Chris Poulin.
Silver Street’s housing portfolio includes 10,000 units.
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