The Real Deal Miami

Investor picks up Palm Beach County apartments for $26M

Buyer used 1031 exchange program to defer taxes

June 03, 2016 03:45PM
By Sean Stewart-Muniz

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The Serrano Apartments

The Serrano Apartments

It seems five years of ownership and a fresh coat of paint has paid off for AION Partners.

The New York-based investment firm just sold its Serrano apartment community in Palm Beach County for $25.9 million.

County records show the deal, which closed this week, covers the 192-unit community at 6010 Sherwood Glen Way, just east of the Greenacres neighborhood. Rents at the complex range from $1,025 to $1,503 per month, with a mix of one-, two- and three-bedroom units that span between 820 square feet and 1,185 square feet.

AION acquired both the Serrano and another complex in Miami Gardens out of foreclosure in 2011, according to county records.

The company then refinanced and renovated both properties with a $33.5 million loan.

Now, an investor in Utah has purchased the 1980s-era Serrano for nearly $134,896 per unit. The buyer is a limited liability company called GP Serrano, managed by attorney Mark. A Bullock.

Bullock works for a firm named First American Exchange Company, which specializes in facilitating 1031 exchanges. The exchange is a part of the U.S. tax code that allows an investor to defer taxes on capital gains from a real estate sale if he re-invests in another property.

The buyer financed its purchase with a $20 million loan from an affiliate of Oak Grove Commercial Mortgage, a lending firm based out of Minnesota that was acquired by JLL in August.