AvalonBay Communities has acquired a 270-unit apartment complex in Coconut Creek for $98.3 million, reflecting an increase in multifamily investment sales in South Florida.
The Arlington, Virginia-based real estate investment trust purchased the property at 5401 Wiles Road from an entity associated with Bainbridge Companies and Rockwood Capital. According to records and Vizzda, the transaction equates to nearly $364,000 per unit.
Previously known as Solaire at Coconut Creek, the garden-style development has been renamed Avalon Coconut Creek following the sale. The complex was completed in 2013 and includes 12 three-story buildings along with amenities such as a clubhouse, gym, and pool on a 15.2-acre site. Apartments range from one to three bedrooms with monthly rents between $2,200 and $3,100.
Bainbridge and Rockwood’s entity had purchased the property for $69 million in 2022. Bainbridge is led by Richard Schechter. Rockwood’s managing partners are David I. Becker and Tyson E. Skillings; the firm operates offices in Los Angeles, San Francisco, and New York.
AvalonBay Communities is led by Benjamin W. Schall and manages nearly 95,000 apartments across the United States as of the end of the first quarter this year. The company develops, redevelops, and acquires apartment properties.
While AvalonBay is not a frequent investor or developer in South Florida’s apartment market, it has made several notable purchases in recent years. In 2021, AvalonBay bought the 380-unit Avalon Miramar complex for $133 million at 4300 Southwest 113th Terrace in Miramar. In September last year, it paid $16.5 million for a nine-acre development site in Lake Worth Beach where it plans to build Northlake Promenade Apartments—a seven-story building with 279 units—next to a Publix-anchored shopping plaza at 374 Northlake Boulevard.
South Florida has seen a modest rise in multifamily investment activity recently after two years of slower sales due to higher interest rates, tighter lending standards, and weaker rental demand compared to previous periods of strong growth. Most buyers who continue purchasing apartment projects are using all cash or financing through Freddie Mac or Fannie Mae loans rather than traditional bank loans because these government-backed options typically offer more favorable terms.
Records indicate that AvalonBay did not record a mortgage when acquiring its new Coconut Creek property.
Other significant transactions have also taken place without mortgages being recorded; last month Crow Holdings paid $97.5 million for the 376-unit “33 West” property at 6300 Southwest 24th Place in Davie under similar conditions.
Additionally, some deals are being structured through stock buyouts: This month Fort Lauderdale-based Favo Capital acquired the 22-story “1818 Park” tower—277 units located at 1818 Hollywood Boulevard—for $190 million via an all-stock deal combined with assumption of liabilities.
