JLL Arranges $13.5M Sale and Financing of 96-Room Residence Inn in Danvers, Massachusetts for Torrington Properties
DANVERS, Mass. — JLL Capital Markets announced Aug. 27 that it arranged the $13.5 million sale and acquisition financing of the Residence Inn Boston North Shore/Danvers, a 96-room extended-stay hotel located at 51 Newbury St. in Danvers, Massachusetts, approximately 20 miles north of Boston. The buyer, Torrington Properties, acquired the asset with municipal approvals already in hand to convert the property into an 88-unit multifamily residential community.
JLL represented the seller, an affiliate of PEG Companies, Inc., and separately arranged acquisition financing on behalf of Torrington Properties. The transaction prices the property at approximately $140,625 per existing room.
A Hotel Sale With a Residential Conversion Built In
The deal is structured to give Torrington Properties flexibility across two asset classes. The property was delivered with existing brand and management agreements, allowing the new owner to continue operating the hotel under the Residence Inn flag before executing the residential conversion. Torrington has indicated it plans to run the property as a hotel for an initial period before moving forward with the multifamily conversion.
The Danvers Zoning Board of Appeals has already granted approval for the 88-unit apartment conversion, reducing entitlement risk for the buyer. The approved plan also includes 11 affordable units at 50% of area median income, and calls for demolition of one hotel building and a shed, with parking expanding from 101 to 123 spaces under the conversion layout.
Built in 1989 on 4.11 acres, the property sits at the junction of Interstate 95, U.S. Route 1 and Route 128, providing direct access to downtown Boston, Logan International Airport and the North Shore region. The hotel features apartment-style suites with fully equipped kitchens, a complimentary breakfast area, fitness center, seasonal outdoor pool and meeting space.
Market Conditions Supporting Both Hospitality and Residential Demand
JLL cited tight supply conditions on both sides of the asset's dual-use potential. The North Shore hotel market has seen no new supply in the past 10 years, while the multifamily sector in the broader Boston area maintains strong occupancy with minimal new construction.
Boston-area multifamily fundamentals reflect that pressure: the average rent in the Boston market reached $2,902 per unit in August 2026, with occupancy at 95.6% and annual rent growth of 0.5%. Massachusetts home prices remain elevated, with the statewide median single-family sale price reaching $665,000 in May 2026, and the average 30-year fixed mortgage rate standing at 6.47% in mid-June 2026 — a combination that reinforces demand for rental housing. Massachusetts has been estimated to need at least 222,000 additional homes by 2035 to close its housing supply gap.
The property's location near Liberty Tree Mall, Northshore Mall, major corporate employers and healthcare facilities throughout the North Shore corridor supports demand from both business travelers and prospective apartment residents, according to JLL.
"The North Shore continues to benefit from its position as a high-barrier suburban alternative to Boston, with strong fundamentals supporting both hospitality and residential demand," said Alan Suzuki, Hotels & Hospitality Senior Managing Director at JLL. "Torrington recognized the value in acquiring an income-producing hotel asset with a de-risked pathway to capitalize on severe housing supply constraints and robust rental demand in one of Greater Boston's most connected suburban markets."
JLL Team and Transaction Details
The JLL Capital Markets investment sales team representing the seller included Hotels & Hospitality Senior Managing Director Alan Suzuki and Managing Director Matthew Enright, along with Managing Directors John Flaherty and Jon Bryant, who represented the multifamily investment perspective. Associates Michael Schwarze and Anthony Nakhle also participated on the investment sales team.
The JLL Debt Advisory team that arranged acquisition financing for Torrington Properties included Director Michael Shepard, Director Ryan Parker and Associate Hunter Cuthbertson.
About the Parties
Torrington Properties is a vertically integrated real estate investment and development company with a diversified portfolio valued at over $1 billion. The firm invests across residential, retail, hospitality and industrial asset classes.
PEG Companies, Inc. is a full-service commercial real estate investment firm with approximately $2 billion in assets under management across multifamily, build-for-rent, student housing, mixed-use, retail and hospitality properties in more than 27 states and provinces.
JLL is a global commercial real estate services and investment management company with annual revenue of $26.1 billion and operations in over 80 countries. JLL's Capital Markets group includes more than 3,000 specialists in nearly 50 countries and advised on $10.6 billion in hotel investment volume in 2025.