Delray Beach, Fla.—Fairfield Residential, a San Diego-based apartment management company, has purchased Spring Harbor at the Landings, a 488-unit luxury garden apartment community located in Delray Beach, Fla., for $69.12 million from Dallas-based Invesco Real Estate.
The Boca Raton office of Atlanta-headquartered ARA, represented the seller in the transaction.
“The property has enjoyed long-term institutional ownership and has been superbly maintained. The owner had renovated approximately 42 percent of the units and was achieving attractive returns on the upgrades,” Avery Klann, ARA South Florida’s principal, tells MHN. “The ability for a new buyer to renovate the other 58 percent of the units was a desirable feature for investors.”
Spring Harbor at the Landings features an average unit size of 1,191 square feet in eight floor plans, 57 percent of which are two bedrooms and 37 percent three bedrooms. It was 97 percent occupied at the time of sale.
ARA brought Spring Harbor at the Landings to market in late September 2012. The low interest rate environment, strong multifamily fundamentals and lack of multifamily properties on the market bode well for the sale.
The property enjoys proximity to major local and regional employment centers, including the Boca Raton office market, boasting in excess of 100 office buildings comprising over 11 million square feet of office space. Within Boca Raton is the Boca Corporate Center and Campus (formerly T-Rex, with 1.8 million square feet of Class A office space) and the home of Office Depot’s corporate headquarters.
“The property’s location in desirable Delray Beach, directly between regional employment centers in Boca Raton and West Palm Beach, contributed to its investment appeal,” Klann says. “The property is only a five-minute drive from the Downtown Delray Beach entertainment district and a few miles from FAU’s main campus.”
Additionally, Spring Harbor at the Landings has tremendous visibility and access from both Linton Boulevard and Congress Avenue, two major thoroughfares in southern Palm Beach County.
Fairfield Residential is planning to renovate the remaining non-upgraded units over their investment hold period.