ST Equities

1205 Hancock Street

Boston (Quincy), MA

ST Equities

Property Type

Residential & Retail

Date Acquired

April, 2011

Rentable SF

128,133 SF

Net Equity IRR

Realized 12%

ST Equities

8-story residential building with 111 residential units, underground covered parking and 6 ground-floor retail units, including Starbucks.  The property benefits from an unmatched location within Quincy, adjacent to a major transportation hub providing MBTA, commuter rail & bus access.  Quincy is a rapidly growing submarket of the Boston MSA, offering a quick commute and affordable options relative to other areas.  With a high income to rent level and unfocused ownership, STE recognized the ability to push rents, as well as the value add opportunity from unit renovations and retail lease up.  No units upgrades or other improvements had occurred since original construction in 2004.

With recent improvements, STE has successfully increased rents by 10% on over 85% of the units to date, as well as increased retail occupancy from 33% to 100%.  The acquisition of the property by STE was the first major transaction in Quincy since the economic downturn, setting a new bar for the submarket.  The primary competitor, located one block away, was recently acquired by a TOP 50 U.S.A. owner for 50 bps less in cap rate, proving the STE’s underwriting and the property’s proximity to the train an unparalleled value add to investors.  Phase II of the Investment will by Unit Upgrades and scheduled to begin after multiple new developments in the area stabilize.