JLL Capital Markets has arranged the $13.5 million sale and acquisition financing of the Residence Inn Boston North Shore/Danvers, an extended-stay hotel in Danvers, MA that is entitled for a multifamily conversion. The 96-room property, located at 51 Newbury St. about 20 miles north of Boston, carries approved rights to be converted into an 88-unit multifamily residential community.
JLL represented the seller, an affiliate of PEG Companies, Inc., in the transaction. The buyer, Torrington, acquired the asset with a plan to pursue a phased strategy that preserves hotel operations in the near term while positioning the property for a future residential conversion. During the initial phase, the hotel is expected to continue to operate under the Residence Inn flag, providing income while Torrington advances its conversion plans.
In addition to brokering the sale, JLL Capital Markets also advised on and secured the acquisition financing on behalf of Torrington. The mandate covered both the marketing of the existing extended-stay hotel and the capital stack required to support the planned transition to multifamily use once the operating phase concludes.
The JLL Capital Markets team on the assignment drew from both its hospitality and multifamily practices. The Hotels & Hospitality group was led by Senior Managing Director Alan Suzuki and Managing Director Matthew Enright. Multifamily investment expertise was provided by Managing Directors John Flaherty and Jon Bryant, along with Associates Michael Schwarze and Anthony Nakhle. On the Debt Advisory side, Director Michael Shepard, Director Ryan Parker and Associate Hunter Cuthbertson arranged the acquisition financing.
Commenting on the transaction, Suzuki noted that the North Shore continues to benefit from its role as a high-barrier suburban alternative to Boston, with underlying trends supporting demand in both the hospitality and residential sectors. He added that Torrington identified the opportunity to acquire an income-producing hotel with an already de-risked path to residential conversion, enabling the firm to address pronounced housing supply constraints and tap into robust rental demand in one of Greater Boston’s most connected suburban markets.
The deal highlights ongoing investor interest in hospitality assets with pre-approved conversion rights in supply-constrained suburban locations, as well as the role of capital markets intermediaries in structuring transactions that bridge current income generation with future multifamily repositioning.
