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Brighton apartment building heads to foreclosure auction

Brighton apartment building heads to foreclosure auction

Money Moves Boston, MA local

30-unit Selkirk Place Apartments scheduled for auction Oct 28 after lender forecloses

Today: Foreclosure auction scheduled

Overview

Updated 2 hours ago

A 30-unit apartment building in Boston's Brighton neighborhood is scheduled for a foreclosure auction on Oct. 28. The Selkirk Place Apartments, bought for $12.8 million in 2022, will be sold at a mortgagee's sale to recover a loan that has since changed hands.

The auction will test how much the lender can recover. The city assesses the property at $7.24 million, well below the $8.75 million mortgage, and a recent listing sought $12.5 million. The outcome could signal how Boston's multifamily market is handling distressed debt.

Why it matters

This foreclosure reveals the market's current pricing for Boston apartment buildings, and the sale price will show how much leverage can be lost when values fall.

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Key Indicators

$12.8M
Purchase price (2022)
Blackstar Capital paid $12.8 million for the building in August 2022.
$8.75M
Loan amount
Everett Co-Operative Bank financed the purchase with an $8.75 million mortgage.
$7.24M
Assessed value (2026)
City of Boston assesses the property at $7.24 million.
30
Apartment units
The building has 17 one-bedroom and 13 two-bedroom units.

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People Involved

Organizations Involved

Timeline

August 2022 October 2026

4 events Latest: Today
Tap a bar to jump to that date
  1. Mortgage assigned to CSCB LLC

    Assignment

    Everett Co-Operative Bank transfers the loan to Brookline-based CSCB LLC.

  2. Blackstar Capital buys Selkirk Place Apartments

    Purchase

    Chestnut Hill-based Blackstar Capital acquires the 30-unit building for $12.8 million.

  3. Everett Co-Operative Bank provides financing

    Financing

    The bank extends an $8.75 million mortgage to fund the acquisition.

Scenarios

1

Third-party buyer wins at auction

Possible Resolves by Nov 30, 2026

Discussed by: Banker & Tradesman, local real estate observers

The auction attracts a buyer who bids above the mortgage balance, possibly near the $12.5 million asking price from the recent listing. The property transfers, and the lender recovers most or all of the loan.

2

Lender takes back the building

Likely Resolves by Nov 15, 2026

Discussed by: Local real estate analysts

No third-party bids meet the mortgagee's minimum, so the lender, likely CSCB LLC, takes the property via a credit bid. The building becomes a real estate owned (REO) holding.

3

Auction postponed or canceled

Unlikely Resolves by Oct 28, 2026

Discussed by: Real estate attorneys, Boston Business Journal

The borrower works out a repayment plan or pays off the loan at the last minute, causing the auction to be postponed or canceled. This often happens when a distressed property finds new financing.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

January 2010

Stuyvesant Town–Peter Cooper Village (2010)

In 2006, a joint venture led by Tishman Speyer bought the massive 11,200-unit Manhattan apartment complex for $5.4 billion, using heavy debt. After the 2008 crash, rents didn't rise as expected, and the partnership defaulted on a $3 billion mortgage. In January 2010, lenders took control.

Then

The lenders wrote down billions and the property was transferred to a new ownership entity.

Now

The foreclosure reset pricing for mass-market rental properties and highlighted the dangers of over-leveraged multifamily acquisitions.

Why this matters now

Like Selkirk Place, a leveraged purchase at peak market conditions collapsed when values fell and debt couldn't be refinanced.

1989–1994

Resolution Trust Corporation apartment auctions (1990s)

During the savings and loan crisis, the federal Resolution Trust Corporation seized and sold thousands of distressed real estate assets, including many apartment complexes, at public auction. These sales often went for pennies on the dollar.

Then

Lenders liquidated non-performing loans and properties, clearing bank balance sheets.

Now

The sales set new market values for multifamily property and helped end the real estate bust.

Why this matters now

Today's lenders may choose to auction distressed properties rather than hold them, potentially affecting market pricing similar to the RTC era.

Sources

(2)