Griffin Exits New Hampshire Investment with High ROI

Griffin Capital sold the Heritage on the Merrimack Apartments in Bedford, NH, generating a 167% return and an average annualized return of 12.9% for investors.

July 10, 2024

Griffin Capital Company LLC, a private real estate investment manager, recently completed the sale of Heritage on the Merrimack Apartments, a 240-unit multifamily community in Bedford, New Hampshire, for over $80 million.

The Heritage apartments were acquired by Griffin Capital in November 2018 for the Griffin Capital (Heritage – Bedford, NH) DST, raising a total of $31.4 million in equity. The recent sale to a national pension fund adviser has provided investors with a realized net total return of approximately 166.6% and an average annualized return of 12.9%.

“Our investment thesis was to acquire a well-constructed asset in a supply-constrained market that was supported by strong, consistent demand. Bedford has the distinction of being one of New Hampshire’s wealthiest markets and is a highly sought-after location for families, boasting one of the best school districts in the state,” said Paul De Martini, chief investment officer of Griffin Capital.

De Martini highlighted that high home prices have fueled strong rental demand, while limited supply has driven high occupancy rates and significant rent growth, resulting in the property outperforming expectations.

Heritage on the Merrimack was initially purchased for $58.2 million and received a $3.1 million renovation. The property spans 27 acres and is conveniently located near several employment hubs in the healthcare and technology sectors.

Griffin Capital Company, established in 1995, is a full-service real estate investment and management firm. The company has managed, sponsored, and/or co-sponsored approximately $23 billion in assets across various real estate sectors and investment structures. Griffin’s senior executives and employees have co-invested over $300 million in various investment verticals.