Avanti Residential has made its first acquisition in Florida through a Class A community in Boynton Beach. The company’s CEO, Christian Garner, told Multi-Housing News that the 341-unit 500 Ocean was acquired from LeCesse Development, an Orlando-based developer. According to Yardi Matrix data, Avanti Residential also secured a $42 million acquisition loan for the transaction from Freddie Mac.
“Investor demand for apartments in Arizona is at an all-time high, driving asset values to a point where more attractive risk-adjusted returns can be achieved in other fundamentally strong markets, including South Florida,” Garner told MHN.
The 2018-built property was built in 2018 and offers one-, two- and three-bedroom units that range in size from 744 to 1,306 square feet. The apartments were built with kitchen islands, walk-in closets and washer and dryer units, while select units feature spa bathtubs and intercoastal or ocean views. Residents at 500 Ocean also have access to a pool, outdoor kitchen, fitness studio, resident library, mini bowling alley, movie theater, game lounge and cybercafe.
The ground floor of the community features 19,000 square feet of retail that’s currently leased to several restaurants and a nail salon, according to Avanti Residential. Located at 101 S Federal Highway, 500 Ocean puts residents half a mile away from the ocean, while also being midway between Boca Raton and Palm Beach.
According to Avanti Residential, 500 Ocean was 98 percent leased at the time of the sale. The new ownership is planning to spend $1.2 million for improvements and upgrades at 500 Ocean, which will include clubhouse renovations, interior and exterior painting, pool upgrades and landscaping.
Garner told MHN that Avanti Residential is in the due diligence period for a second acquisition of a similarly sized community in the state. The deal is expected to close in 45 days.
The 500 Ocean acquisition also marks Avanti Residential’s latest step in its nationwide investment strategy that aims to increase the company’s multifamily holdings, specifically through core-plus and value-add apartments. The company currently owns and operates approximately 7,500 units in several states including Colorado, Arizona, Utah, the greater Kansas City area, and now Florida.
In contrast to its bullish Florida sentiment, Avanti has recently sold off some of its Arizona holdings. In December of last year, the company sold its 248-unit property in Glendale, Ariz., for $43.3 million. This July, the company sold a 264-unit community in Goodyear, Ariz., for $71.8 million.