Torrington Buys Danvers Residence Inn for $13.5M via JLL

Torrington has acquired the 96-room Residence Inn Boston North Shore/Danvers for $13.5 million through JLL Capital Markets [1]. The extended-stay property carries Danvers Zoning Board of Appeals approval for conversion into an 88-unit residential community, giving the buyer immediate operating cash flow before executing a multifamily transition [1], [2].

What are the terms of the acquisition?

Torrington purchased the 96-key hospitality property from an affiliate of PEG Companies Inc. for $13.5 million, according to Hotel Business [1]. JLL Capital Markets represented the seller in the transaction while simultaneously working on behalf of Torrington to arrange acquisition financing [1], [2]. The transaction structure delivers brand and management agreements that grant Torrington operational flexibility [1]. The buyer intends to proceed with an 88-unit multifamily redevelopment after an initial period of running the property under the Residence Inn flag [1], [2].

What municipal conversion rights convey with the asset?

The Danvers Zoning Board of Appeals granted municipal zoning approvals to redevelop the existing 96-room extended-stay building into an 88-unit multifamily community [1], [2]. According to Lodging Magazine, prior ownership secured these approvals before closing, offering a de-risked path to delivery compared to ground-up multifamily construction [1], [2]. The conversion option addresses regional housing dynamics shaped by a homeownership cost premium and tight rental inventory [1], [2].

Where is the property situated within the Boston market?

The asset sits on 4.11 acres at the junction of Interstate 95, U.S. Route 1, and Route 128 in Danvers, Massachusetts, roughly 20 miles north of downtown Boston [1]. This highway convergence creates direct travel corridors to Logan International Airport, central Boston, and employers across the North Shore [1], [2]. Regional commercial anchors close to the property include the Northshore Mall and the Liberty Tree Mall, alongside healthcare complexes and office employers along the corridor [1], [2].

What physical amenities exist for the transition?

Built in 1989, the extended-stay hotel operates with apartment-style suites featuring fully equipped kitchens [1], [2]. Existing communal infrastructure includes a complimentary breakfast dining area, a fitness center, meeting space, and a seasonal outdoor swimming pool [1], [2]. These in-place kitchen layouts reduce the capital intensity of converting the lodging structure into standard rental units [1].

How do local lodging and multifamily supply compare?

The North Shore hospitality market recorded zero new lodging supply additions over the past 10 years, as reported by Hotel Business [1]. Concurrently, the regional multifamily market shows high occupancy rates paired with minimal new ground-up residential construction [1]. These combined conditions allow Torrington to operate the asset as an extended-stay hotel during the interim while planning the transition into residential housing [1], [2].

Who brokered the sale and debt financing?

JLL fielded an advisory team combining hotel and multifamily specialists to close the transaction [1], [2]. Senior Managing Director Alan Suzuki and Managing Director Matthew Enright led the Hotels & Hospitality group representation, joined by Associates Michael Schwarze and Anthony Nakhle [1], [2]. Multifamily investment coverage came from Managing Directors John Flaherty and Jon Bryant [1], [2]. The JLL debt advisory team arranging Torrington's acquisition loan included Directors Michael Shepard and Ryan Parker alongside Associate Hunter Cuthbertson [1], [2].