Torrington Acquires Danvers Residence Inn for $13.5M

Torrington purchased the 96-room Residence Inn Boston North Shore/Danvers from an affiliate of PEG Companies Inc. for $13.5 million, with JLL Capital Markets arranging the transaction and acquisition financing [1]. The buyer plans to operate the extended-stay hotel under the Residence Inn brand temporarily before executing an approved conversion into an 88-unit multifamily residential community [[1], [2]].

What are the terms of the Danvers Residence Inn transaction?

Torrington acquired the extended-stay property for $13.5 million through a deal brokered and financed by JLL Capital Markets [[1], [2]]. As reported by Hotel Business, JLL represented the seller, an affiliate of PEG Companies Inc., while also securing the acquisition financing on behalf of Torrington [1]. The transaction includes brand and management agreements structured to give Torrington operational flexibility to maintain hotel operations or proceed immediately with residential redevelopment [[1], [2]].

What redevelopment rights are attached to the asset?

The Danvers Zoning Board of Appeals granted municipal zoning approvals enabling the 96-key hotel to be converted into an 88-unit apartment community [[1], [2]]. According to Lodging Magazine, this approved conversion provides a lower-cost path relative to ground-up residential construction in an area marked by high homeownership cost premiums and severe housing shortages [2]. Torrington plans to maintain standard hotel operations under the Residence Inn flag for an initial transition period before starting the conversion process [[1], [2]].

How is the Residence Inn Boston North Shore configured?

Constructed in 1989 across a 4.11-acre parcel, the property operates as a 96-suite extended-stay hotel [1]. Lodging Magazine detailed that the guest accommodations consist of apartment-style suites equipped with full kitchens [2]. The physical amenities supporting the site include a dedicated breakfast dining area, a fitness studio, meeting space, and a seasonal outdoor swimming pool [[1], [2]].

What market dynamics drive the North Shore hospitality and multifamily sectors?

The North Shore hotel market has recorded zero new lodging supply over the past 10 years, while local multifamily properties maintain elevated occupancy alongside minimal new construction starts [1]. Hotel Business reported that the asset sits at the intersection of Interstate 95, U.S. Route 1, and Route 128, offering direct road connections to downtown Boston, Logan International Airport, and regional employers [1]. The location also neighbours retail hubs such as Liberty Tree Mall and Northshore Mall, alongside healthcare institutions and corporate facilities across the corridor [[1], [2]].

Who managed the advisory and financing teams for the deal?

JLL Capital Markets staffed the transaction using cross-discipline lodging, multifamily, and debt advisory specialists [[1], [2]]. The investment sales team featured Hotels & Hospitality group senior managing director Alan Suzuki and managing director Matthew Enright, alongside multifamily managing directors John Flaherty and Jon Bryant, supported by associates Michael Schwarze and Anthony Nakhle [[1], [2]]. Acquisition financing was executed by JLL debt advisory directors Michael Shepard and Ryan Parker together with associate Hunter Cuthbertson [[1], [2]].