Real Estate
Somerville's Maxwell's Green Development Is for Sale
The brand-new 184-unit apartment complex is on the market to seek long-term financing.
Maxwell's Green, a 184-unit apartment complex completed in March, is on the market and seeking financing from potential long-term investors.
Michael Byrne, executive director at Cushman & Wakefield of Massachusetts, a commercial real estate broker, confirmed the large apartment complex was on the market, saying, "We're handling the prospective sale."
According to about.com, investopedia and propertymetrics.com, it's not uncommon for commercial real estate projects, like Maxwell's Green, to seek long-term financing after the project is complete, operational and leased to full occupancy—"stabilized" in the language of real estate development.
Developers will pay off short-term construction loans with some sort of long-term financing, which can take many forms, including "takeout loans" and recapitalization, in which new investors buy a stake in a property by injecting additional equity into it.
Kyle Warwick of Gate Residential, which built Maxwell's Green in partnership with K.S.S. Realty Partners, confirmed Maxwell's Green was fully leased and "stabilized."
It's a "functioning, great community," he said about the project.
He said he was happy with how the development turned out, but he wanted to leave his comments at that because the marketing of Maxwell's Green was still in its early stages.
Built on an old industrial site between Lowell and Clyde streets, Maxwell's Green consists of four buildings, and it has a yoga studio, a fitness center, a roof deck and a cafe, among other attributes.
Byrne deferred other comments about the sale to a spokesperson for Cushman & Wakefield. Somerville Patch reached the spokesperson by phone but did not, as of this posting, hear back with more details.
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