$14 Million Residence Inn Buy Paves Way for Multifamily Conversion in Supply-Constrained Market

Features September 4, 2026| | Amy Wolff Sorter
Alan Suzuki

Photo Source: JLL

Torrington Real Estate Development closed on its $13.5 million buy of the 96-room Residence Inn Boston North Shore/Danvers. The Boston buyer also secured municipal zoning approvals from the Danvers Zoning Board of Appeals to convert the 1989-built property at 51 Newbury St. into an 88-unit apartment building.

“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 Hotels & Hospitality Senior Managing Director Alan Suzuki told ApartmentBuildings.com.

Suzuki and JLL managing directors Matthew Eright, John Flaherty and Jon Bryant and associates Michael Schwarze and Anthony Nakhle represented the seller, PEG Companies Inc.

JLL Directors Michael Shepard and Ryan Parker, and Associate Hunter Cuthbertson, arranged the financing.

Flaherty told ApartmentBuildings.com that the submarket continues to struggle with weak housing demand and minimal new multifamily construction. “This is due in large part to rising construction costs, a challenging permitting environment and general NIMBY sentiment among homeowners in the North Shore suburbs,” he added.

John Flaherty

However, the Residence Inn comes with an ideal design and layout for a multifamily conversion. The property was originally designed as an extended-stay hotel, with 11 two-story, garden-style buildings offering spacious apartment-style suites and fully equipped kitchens.

“The property includes amenities that align seamlessly with multifamily expectations, including a central clubhouse, onsite laundry facilities, a fitness center and seasonal pool,” Flaherty said.

PEG Companies has owned the property since 2018 and is developing a new Residence Inn by Marriott at the Peabody, MA-based North Shore Mall, in partnership with Simon Properties.

“Upon completion and formal opening of the hotel, which is anticipated for Q1 2027, the new hotel will replace operations at the Danvers property,” Suzuki said.

 

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