The Real Deal Miami

Delray Beach affordable housing trades for $11.3M

Seller filed for Chapter 11 in January 2015

March 03, 2016 02:15PM

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Auburn Trace Apartments

Auburn Trace Apartments

An affordable housing community in Delray Beach has sold for $11.3 million. 

Auburn Trace Apartments, a 152-unit low income housing tax credit complex, sold for $74,342 per apartment, according to Marcus & Millichap. The 20-acre property, at 625 Auburn Circle West, was developed in 1990 and includes a 7,654-square-foot commercial building. The complex includes one-, two- and three-bedroom apartments with central heat and air conditioning, individual water heaters and private patios.

Auburn Trace Limited, an affiliate of Auburn Communities, developed and sold the community out of bankruptcy, the South Florida Business Journal reported. The firm filed Chapter 11 reorganization in January 2015. It owed $4.2 million to IberiaBank, $4.2 million to the city of Delray Beach and a $200,000 loan from the U.S. Small Business Administration. Brian J. Hinners, co-founder and CEO of the affordable housing developer, manages the firm, which focuses on South and Central Florida.

A group of New York investors purchased the complex in a 1031 exchange, according to a press release. LLCs managed by David Shweky and Sion Separzadeh bought the property, the SFBJ reported. Evan Kristol, Still Hunter III and Brandon Rex of Marcus & Millichap’s Fort Lauderdale office represented the both parties in the deal.

Amenities at the Delray Beach property include a clubhouse, playground, volleyball court, onsite management, laundry facility and a daycare and learning center. – Katherine Kallergis