AvalonBay Communities bought a 270-unit apartment complex in Coconut Creek for $98.3 million, marking an uptick in South Florida multifamily investment sales.
Arlington, Virginia-based AvalonBay bought the property at 5401 Wiles Road from an entity tied to Wellington-based Bainbridge Companies and Rockwood Capital, according to records and real estate database Vizzda. The deal breaks down to nearly $364,000 per unit.
The garden-style complex, previously called Solaire at Coconut Creek, was renamed Avalon Coconut Creek after the purchase.
Completed in 2013, Avalon Coconut Creek consists of 12 three-story apartment buildings, a club, gym and pool on a 15.2-acre site, Vizzda records show. It has one-bedroom to three-bedroom apartments, with monthly rents ranging from $2,200 to $3,100, Apartments.com shows.
Bainbridge and Rockwood’s entity had paid $69 million for the property in 2022, according to records. Bainbridge is led by Richard Schechter. Rockwood, led by managing partners David I. Becker and Tyson E. Skillings, has offices in Los Angeles, San Francisco and New York.
Led by Benjamin W. Schall, AvalonBay is a multifamily real estate investment trust with a portfolio of nearly 95,000 apartments across the U.S. at the end of the first quarter, its website shows. It develops, redevelops and purchases apartments.
It’s a sporadic South Florida apartment investor and developer.
In 2021, AvalonBay paid $133 million for the 380-unit Avalon Miramar complex 4300 Southwest 113th Terrace in Miramar.
In September, the firm paid $16.5 million for a 9-acre development site in Lake Worth Beach, with plans for the seven-story, 279-unit Northlake Promenade Apartments building. The site is adjacent to the Publix-anchored shopping plaza at 374 Northlake Boulevard.
South Florida multifamily investment sales have experienced a slight increase in recent months. Elevated interest rates, tighter lending and slower rental demand suppressed activity in the past two years compared with the preceding bonanza. Buyers still purchasing South Florida apartment projects generally used all cash or relied on Freddie Mac and Fannie Mae loans, which usually have better terms than bank financing.
Records show AvalonBay did not record a mortgage for its Coconut Creek apartment complex purchase.
Last month, Crow Holdings paid $97.5 million for the 376-unit 33 West property at 6300 Southwest 24th Place in Davie. Crow also didn’t record a mortgage.
Others are closing deals through stock buyouts.
This month, Fort Lauderdale-based Favo Capital bought the 22-story, 277-unit 1818 Park apartment tower at 1818 Hollywood Boulevard in Hollywood for $190 million in an all-stock and assumption of liabilities deal.
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