Dealmaker: Walker & Dunlop Arranges $137M for Downtown Boston Multifamily

(Illustration: LUKA on the Common Photo via Business Wire)

Walker & Dunlop, Bethesda, Md., arranged $137.2 million for LUKA on the Common, a 398-unit, 30-story apartment community in downtown Boston.

In July, a Walker & Dunlop Boston Investment Sales team led by Managing Directors Travis D’Amato and Michael Coyne arranged the property’s sale on behalf of client AvalonBay Communities and buyer Carmel Partners.

At the same time, a Walker & Dunlop Multifamily Finance team led by Senior Managing Director of Multifamily Finance Jeff Burns secured $137 million in acquisition financing for Carmel Partners. They identified Fannie Mae as the lender and structured it as a five-year, full interest-only loan with an early rate lock.

“Boston’s multifamily fundamentals are among the strongest in the nation, driven by limited existing and future supply, ” Burns said. “It has a dynamic office and lab market as well that is bolstered by employment growth in life sciences and healthcare. The housing scarcity has impacted both rent growth and the for-sale condominium market and has enabled us to refinance successfully.”

Previously known as the AVA Theater District, the property was rebranded as LUKA on the Common and stands 30 stories tall on a 21,344-square-foot site in the Boston Common multifamily market. The transaction was the highest price paid for an apartment complex in the market in more than a year.