Hana jointly acquires Boston-based multifamily for $262 mn

 
Hana Alternative Assets Management Co. and a US asset manager acquired a tower of luxury multifamily housing assets in Seaport Boulevard, Boston, Massachusetts for $262 million, according to investment banking sources on Jan. 16. The South Korean asset manager and the US asset management firm have set up an 80:20 joint venture and purchased the tower via the JV.

In the $262 million purchase, Hana injected around $83.9 million, the sources said.

Completed in the end-2020, the multifamily asset has 26 stories with 270 units. The luxury property has high-quality amenities including a fitness center, outdoor swimming pool and lounge. 95% of the asset is leased out by professionals working for global companies, education, bio and information technology sectors, sports stars and others.

"Boston’s multifamily housing market has been low over the past decade. However, the newly-redeveloped Seaport District has attracted lots of new companies and their employees these days,” a Korean IB source said. “The demand for multifamily housing in the South Boston district is getting higher. It is rising as a stable real estate market,” the source added.

Hana has invested in Seaport’s real estate for the past few years. Last July, the Korean alternative investment firm said a $51.5 million mezzanine loan it had offered for a luxury residential development in Seaport has been repaid in April 2021. Targeting an annualized return of 9.8%, Hana arranged the loan investment in April 2019 as part of a $300 million mezzanine tranche originated by US real estate developer Cottonwood Group. The property, EchelonSeaport, comprises two condominium towers and one multifamily tower. 

Previously an industrial area, Seaport has undergone extensive redevelopment in recent years. The district is near Boston Convention & Exhibition Center and World Trade Center Boston. General Electrics’ headquarters has moved to the Seaport District, as well as Amazon and Reebok offices. Boston is home to high-paying jobs as Harvard University, Massachusetts Institute of Technology and other prestigious universities are located in the city.

Write to A-young Yoon at youngmoney@hankyung.com
Jihyun Kim edited this article.