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Griffin Capital Sale of NH Community Generates Nearly 167% Return for DST Investors

Private real estate investment manager Griffin Capital Company LLC recently sold Heritage on the Merrimack Apartments, a 240-unit multifamily community located in Bedford, N.H., for over $80 million.

Griffin Capital acquired the Heritage apartments in November 2018 on behalf of Griffin Capital (Heritage – Bedford, NH) DST. The total equity raised was $31.4 million. Purchased by a national pension fund adviser, the current sale resulted in a realized net total return to investors of approximately 166.6% and an average annualized return of 12.9%.

“Our investment thesis was to acquire a well-constructed asset in a supply-constrained market that was supported by strong, consistent demand. Bedford has the distinction of being one of New Hampshire’s wealthiest markets and is a highly sought-after location for families, boasting one of the best school districts in the state,” said Paul De Martini, chief investment officer of Griffin Capital.

“These factors, combined with elevated home prices, have spurred robust rental demand, but supply has been limited, leading to strong occupancy and elevated rent growth. As a result, Heritage’s performance has consistently exceeded our expectations,” added De Martini.

Heritage was purchased for $58.2 million and underwent a $3.1 million renovation. The 27-acre site and is within close proximity to multiple employment hubs within the healthcare and technology sectors.

“I want to express my gratitude to our investment team for driving a great investor experience as well as our asset management team for overseeing terrific operational performance of the asset during our ownership,” said Nick Rosenthal, co-chief executive officer of Griffin Capital Company.

“I also want to thank our partners and investors for their continued confidence and support as well as the residents of Heritage, everyone in the ecosystem has choices and we strive to drive exceptional outcomes for all stakeholders,” concluded Rosenthal.

Griffin Capital Company is a full-service real estate investment and management company. Since 1995, the company has owned, managed, sponsored and/or cosponsored approximately $23 billion in assets across a wide range of real estate sectors and investment structures. Griffin’s senior executives and employees have co-invested over $300 million in various investment verticals.

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