FL Luxury Apartments Command $103M
- Oct 30, 2018
AvalonBay has acquired Alexander Living, a two-building luxury community encompassing 290 units in West Palm Beach, Fla., from a joint venture between Ram Realty Advisors and Kolter Urban, for $103 million.
Newmark Knight Frank’s Vice Chairmen Avery Klann, Hampton Beebe and Director Jonathan Senn facilitated the sale.
“We are constantly looking for opportunities to reinvent existing buildings. Alexander Lofts met that criteria,” Casey Cummings, Ram Realty Advisors’ CEO, told Multi-Housing News. “We also tend to pursue locations that are emerging rather than those that are established (and frequently overbuilt). This part of West Palm Beach was, and is, undergoing a renaissance. By virtue of our direct execution teams and internal discretionary capital, we can take calculated risks where others may not.”
For example, Alexander Living was the first new institutional quality apartment community to be developed in West Palm Beach after the financial crisis.
“Much of the new product in the Southeast tends to be commoditized or repetitive. This project had all of the bells and whistles that renters expect to find in a new community, plus it had character and authenticity,” Cummings said. “The community has a soul, largely as a result of the adaptive re-use at Alexander Lofts, the public art, the urban park, and the surrounding neighborhood. That said, it isn’t just buildings and amenities that make the difference, it’s the people. The residences, onsite management team, and our retail partner helped bring the buildings to life.”
The Alexander, located at 333 Fern St., consists of 205 units and offers views of Palm Beach and the Intracoastal Waterway. The 20-story asset was turned into luxury apartments just last year.
Originally constructed in 1926 as headquarters for Southern Bell Telephone, Alexander Lofts, located at 326 Fern St., was redeveloped into luxury units in 2005.
Units in both buildings feature modern, open-concept floorplans with plank and tile flooring, soaring ceilings, large windows, balconies on select units, contemporary style baths and gourmet kitchens with stainless appliances. Both buildings are pet-friendly.
The properties’ shared amenities include a swimming pool and club room on the seventh floor, expansive 24-hour fitness center, executive business and conference center, personal video entry system and more.
“In addition, we have a gourmet raw vegan restaurant and juice bar, a lovely public park and are instantly recognized by the iconic Art in Public Places murals on the east side of both residences,” Jennifer Stull-Wise, Ram Realty Advisors’ managing director, asset management, told Multi-Housing News. “The location and views are truly our best irreplaceable amenity.”
Alexander Lofts and The Alexander are situated in downtown West Palm Beach, in the heart of the Arts & Entertainment District, and within walking distance from transportation, shopping, dining and entertainment venues.
According to Stull-Wise, the city continues to grow, not just from a quantitative perspective, but more importantly from a quality of life perspective with public spaces and new transit systems such as Brightline.
“Alexander Living is located in the epicenter of all of the exciting changes taking place in West Palm Beach,” Stull-Wise said. “It’s truly becoming a cosmopolitan place to live and work.”
Ram Realty Advisors owned the properties for approximately six years and completed execution of the renovation and new development component a little over a year ago.
“We achieved stabilization late this summer,” Cummings said. “As much as we love the property and would have been pleased to own it longer-term, our funds typically target a 5+/- year holding period. We believe in the importance of following through on business plan execution.”
Last year, Ram Realty Advisors sold the Apartments of Stonehenge, a 452-unit, garden-style community in the North Raleigh submarket of Raleigh, N.C.
Images courtesy of RAM