PROVIDENCE – The Promenade Apartments at the Foundry complex have sold for a combined $77.8 million, according to property records filed Oct. 1 for a deal with an expected final price tag of $105 million.
The properties feature 433 luxury units in two converted mill buildings at 255 Promenade Street and 25 Holden Street.
The buyer was Promenade Street Owner LLC. The business has a listed mailing address of The DSF Group, a real estate developer that specializes in multifamily properties and is headquartered in Waltham, Mass. The company notes on its website that its acquisition strategy is targeted towards under-performing properties.
In June, the Foundry provided Providence Business News with marketing materials that indicated that rents in the Promenade buildings are 20% below those at newer renovated buildings in downtown Providence. The marketing document stated that a new owner would have the opportunity “to push rents further.”
The buyer paid $40.6 million to Promenade Building Associates for the property located at 255 Promenade Street and $37.2 million for the property at 25 Holden Street to Sharpe Building Associates LLC. A source with knowledge of the sale told Providence Business News that it is expected to total $105 million.
Neither the Foundry nor the buyer could be immediately reached for comment.
The buyer also took out a $74.2 million mortgage on the properties from CBRE Multifamily Capital Inc.
CBRE New England had marketed the multifamily property for sale.
The two properties include 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.
The Sharpe Building has a tax stabilization agreement with the city that will lower taxes through 2029. Current taxes are based on 33.3% of the current assessment. The building underwent renovations in 2015.
The Promenade Building was completed in 2005.
When the sellers were asked why the apartment units were put on the market in June, they 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.”
(UPDATES throughout with detail on expected final sale price.)
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
