PROVIDENCE – One of the largest mill redevelopments in the city is for sale. The Promenade Apartments consists of 433 luxury units in two converted mill buildings. The property is being marketed by CBRE New England.
The listing comes six years after renovation of the Sharpe Building at The Foundry campus was completed. The Promenade Building was completed in 2005.
The listed property includes the two residential buildings, two parking structures and amenities such as a swimming pool with a retractable roof and views of the Statehouse. The site includes 75 raised garden beds for residents and a private park.
An asking price has not been set, according to information provided by The Foundry leadership.
The 25-acre, 13-building Foundry project is one of the largest redevelopment sites in Providence. It was begun more than 25 years ago by the late Antonio Guerra, and his family continues to lead The Foundry today.
Foundry leaders declined a request for an interview but responded in writing to several questions posed by the Providence Business News about the listing.
When asked about current occupancy and the fate of current tenants, Foundry principals said that resident leases would be honored in the event of a sale. The buildings are currently fully leased with only a handful of units coming open soon. Most of the units are one-bedroom, one-bathroom designs.
When asked why sell now after so many years, the principals responded: “Putting the Promenade Apartments on the market was purely a personal decision for the Guerra family. We hope to find a buyer who will be a good steward to the property and the residents, while also preserving the standard of quality we have maintained over the years.”
The listing comes amid unprecedented demand for housing, including apartments, in Providence and Rhode Island.
Marketing materials provided to the PBN by the Foundry indicate that rents in the buildings are 20% below those at newer renovated buildings in downtown Providence. The marketing document states that a new owner would have the opportunity “to push rents further.”
The Sharpe Building has a tax stabilization agreement with the city of Providence that will lower taxes through 2029. Current taxes are based on 33.3% of the current assessment.
The marketing assessment states that unlike other larger cities, where people decamped to rural or suburban locations, Providence has held on to its residential and commercial base.
“While the majority of professionals are still working from home, there has not been the flight to the suburbs, which we have seen in other cities,” the document stated. “In fact, as demand has stayed strong, the Providence apartment submarket experienced an increase in both occupancy and rents during 2020.”
Mary MacDonald is a staff writer for the PBN. Contact her at MacDonald@PBN.com.
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