Boston-Area School Sells Campus for Luxury Development

A pair of real estate developers is taking advantage of a Boston-area college’s desire to consolidate and raise cash.

AvalonBay Communities and Winn Development Company scored approval from local officials for a 340-unit luxury housing project on the south campus of Salem State University, a public college located roughly 16 miles north of Boston, the Boston Business Journal reported. The agreement to sell the property to the developers was reached two years ago, but remains contingent on a few factors.

The purchase price was not disclosed by the school. It is set to become public when the sale closes.

“The sale of South Campus allows the university to focus on a smaller footprint, alleviating some operational costs associated with deferred maintenance and outdated facilities,” university officials said in a statement.

The luxury multifamily development, dubbed Avalon Salem and set to unfold at 8 Harrison Road, is only the first phase of the broader Forest River Residences project, which is expected to include another 145 units on the campus site. The subsequent phase will involve a mix of new construction and repurposing of existing buildings.

The 23-acre lot will also include more than 500 parking spaces.

The approval process dates back to a plan announced by the school last spring to sell its south campus and shift all of its classes north. The sale of the campus cancels more than $50 million in deferred maintenance and operational costs.

The school intends to complete its campus consolidation by fall 2027. Construction on the luxury housing is expected to begin this summer, though the school will maintain ownership of the site until all classes are moved to the other part of the campus.

Proximity to schools has long been of interest to developers in the Boston area, whether for student use or otherwise. Controversial landlord Alpha Management recently acquired a handful of off-campus housing properties in Boston’s Brighton neighborhood for a combined $36 million, offering close access to major universities like Boston College and Boston University.

— Holden Walter-Warner