Canal District developer buys Kelley Square building for $1.2M

Edward Murphy, who has purchased and rehabbed properties around Worcester, has bought a mixed-use building on Millbury Street just off Kelley Square for $1.2 million.
 
The property at 23 Millbury St., which includes European Bakery & Pastry, European Cafe & Deli, and nine upper-floor apartments, sold for well above its assessed value of $697,800, with the seller's representatives saying it received multiple offers within the first week it had the property on the market.
 
That firm, the investment sales broker Northeast Private Client Group, which has local offices in Newton, announced the sale. The deal closed Aug. 1.
 
Murphy bought the property through his Baystate Investment Fund, which is headquartered in the Canal District. Murphy, who lives in Westborough, has several other real estate businesses in which he buys, renovates and manages properties, including 7 Hills Property Management and weRENTcentralmass.
 
Murphy said he normally acquires distressed properties that require more work, but he said 23 Millbury St. doesn't fall into that category. The building is in good condition, but its apartments have been rented at rates 50% to 60% below today's market rates, he said.
 
Current tenants will be offered lower rents, but rates will still increase, Murphy said. Both first-floor commercial tenants, both longtime occupants, plan to stay, he said.
 
The sellers were Stanley Siudak and Zbigniew Surowaniec, according to the Worcester County Registry of Deeds. The four-story building includes 18,000 square feet on 0.15 acres.