December 6, 2017
Pequot Highlands, a 250-unit affordable housing community in Salem, MA, is undergoing a remarkable $20.5M rehabilitation as part of Silver Street’s 2016 acquisition of the property. The rehab’s centrepiece is its $11M façade overhaul, in which the red brick popular in the 1970s is being replaced with modern, insulated, and energy efficient metal paneling and windows which together will deliver a projected 10% reduction in energy use. Additionally, over $9M has been allocated for updates to both common and private space within the complex.
Pequot Highlands was first built in 1971 and was, at the time, emblematic of the ideal approach to affordable housing. As the flagship property of the prior owner it boasted amenities including playgrounds, gazebos, a basketball court, a computer center, and views of both the ocean and the Boston skyline, but in recent years it has been beset by architectural issues due to the deterioration of the façade. Silver Street saw an opportunity to preserve an important asset while expanding and extending affordability to the community, structuring the deal in such a way as to ensure a complete rehabilitation of the property while still maximizing its value for the seller.