December 10, 2018
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High Portland-area rental demand fuels $87.5 million apartment sale

PORTLAND, Maine — A Massachusetts investment firm has purchased 620 South Portland apartment units for $87.5 million, citing high rental demand in Greater Portland as a key reason for the purchase.

The Portland brokerage and property management firm CBRE The Boulos Co. announced the sale Tuesday, which included the 500-unit Redbank Village development and the abutting 120-unit Liberty Commons.

Matthew Frazier, a founder of buyers Jones Street Investment Partners, said in a statement that the strength of Portland’s rental market drew it to the purchase.

“We are familiar with the market and we like what is happening there,” Frazier said, adding that it’s “a secondary market that has rental demand characteristics of a core market.”

The two apartment complexes are located between the Portland International Jetport and the Maine Mall. The properties were previously owned by the Dallas-based Lone Star Funds, which acquired the properties when it bought the real estate investment trust Home Properties of America in 2015.

The sale is the second major deal with Massachusetts investors, following a $50.2 million purchase of 309 units in Scarborough and Portland, also brokered by CBRE The Boulos Co.

Jones Street Investment Partners, of Hingham, Massachusetts, said it has amassed more than 1,200 apartment units since its founding in the fall of 2014.

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