Carmel Partners Pays $43M for Stake in Boston Luxury Rental

Carmel Partners paid $43 million for an undisclosed stake in Boston’s 46-story, 368-unit The Sudbury, Multi-Housing News reported.

The San Francisco-based multifamily developer bought the stake in 100 Sudbury Street from a joint venture between National Real Estate Advisors and the HYM Investment Group.

The transaction breaks down to more than $116,000 per unit. The deal doesn’t cover an additional 55 for-sale condominium units. More than a quarter of the rental units at the property are designated for affordable housing.

The property was completed in 2020. The Sudbury has four different floorplan options and shared amenities such as a golf simulator, swimming pool, sky terrace, dog spa, fitness center and club room. The building is a component of the 2.9-million-square-foot Bulfinch Crossing redevelopment. Monthly rent at the Financial District tower varies greatly, from $3,500 to $9,200, according to Apartments.com.

In 2017, Pacific Life Insurance originated a $250 million construction loan for the project.

A JLL team including Riaz Cassum and Roberto Casas arranged the transaction.

Carmel’s stake deal is the first acquisition involving a high-rise in Boston this year, according to Yardi Matrix. It’s also the first residential high-rise transaction in the market since last January, a troubling pace for a market that saw 28 properties change hands last year for more than $2.5 billion.

The acquisition marks a rare foray into New England for Carmel, which doesn’t have any other Boston projects listed on its website. Other markets for Carmel include New York, Washington, D.C. and California.

An affiliate of the company purchased a 243-unit apartment building in Seattle’s Columbia City neighborhood from Wood Partners for $97 million late last year.

— Holden Walter-Warner