Jones Street Investment Partners has secured $179 million in financing from three banks for the development of a trio of separate multifamily properties in the Northeastern US.
The Boston-based residential manager received financing from Cleveland, Ohio-based Key Bank; Bangor, Maine-based Bangor Savings Bank; and Boston-based Berkshire Bank as well as a preferred equity investment from an undisclosed investment manager.
The construction loans will allow Jones Street to expand its portfolio in key secondary markets across the Northeast, says founder and CEO Matt Frazier.
“Each of the projects aligns with our emphasis on long-term, cash flowing investment strategies that have the potential to deliver attractive risk-adjusted returns,” said Frazier in a statement.
Key Bank provided a $70 million loan for the development of Seacoast Residences, a 282-unit multifamily community in Kittery, Maine. For this project, Jones Street also received a $7.9 million preferred equity investment from an undisclosed investor.
Bangor Savings Bank then provided a $36 million loan for the development of a 181-unit multifamily community in Brunswick, Maine; and a $65.1 million loan was provided by Berkshire Bank for a slightly larger multifamily community in downtown Manchester, New Hampshire.
Colliers International arranged the construction loans on Jones Street’s Brunswick and Manchester projects and the preferred equity investment on the Kittery project.
Jones Street Investment Partners is focused on opportunistic and value-added multifamily investments located in the Northeast and Mid-Atlantic regions of the United States. Jones Street’s portfolio consists of 4,389 apartment units with approximately $1.3 billion of current assets under management and $360 million of equity invested.