Sky Mark Tower in Downtown Worcester Sells for $28.8 Million
Worcester's real estate market is on fire. In the latest in a series of major real estate transactions in Worcester, the 24-story Sky Mark Tower on the southern edge of downtown recently sold for $28.8 million. Given that it was last assessed at a value of $18.5 million by the city, it is clear that residential towers like this one are becoming more valuable and in-demand than ever – and it could be a harbinger of higher median rents to come in this bustling city.
WorcesterRealEstate.com has been monitoring real estate transactions in Worcester for some time, and the sale of this massive residential tower is noteworthy for a number of reasons. Opened in 1990 and standing 24 stories tall, the building was the last one exceeding 10 stories in height to be built in the city. Currently known as Skymark Tower, the building is home to 206 apartment homes. With a sale price of $28.8 million, then, the value of each apartment lands at around $139,800.
Although the building was opened in 1990, it has been owned since 2003 by a limited liability corporation that is registered to Framingham-based VTT Management, a property management company. Located at 600 Main Street, the building was reportedly 95 percent occupied and 98 percent leased at the time of the sale. Currently, one-bedroom units in the building, which offer around 750 square feet of space, rent for anywhere from $1,250 to $1,500 per month. Two-bedroom units, which offer around 925 square feet, are currently going for $1,500 to $1,700 per month. The building does charge extra rent for cats and dogs, which are both allowed, and for assigned parking.
The building was purchased by LA-based Benedict Canyon Equities, and the deal was brokered by Capstone Apartment Partners, which is based out of Charlotte. Interestingly enough, the founder of Benedict Canyon Equities, Bob Hart, is a 1979 graduate of the Worcester Polytechnic Institute and is currently on the institution’s board of trustees. Hart is also the president and CEO of TruAmerica Multifamily, an LA-based real estate investment firm. Given all of that information, it is clear that Hart and partners expect the purchase of the building to provide excellent returns. Could it mean that rent prices in this building and other Worcester properties could be on the rise soon too?
If you’re looking to rent an apartment in the city of Worcester, the 24-story Sky Mark Tower – the tallest residential tower in the area – has long been a good option to consider. Now that the property has changed hands, however, there is no telling what will happen to it in the future. The new owners have not thus far made any announcements about any changes, but they are most likely going to happen sooner rather than later.