The Real Deal Miami

Fairfield pays $88M for two Broward apartment communities

Price breaks down to roughly $144,736 per apartment
By Sean Stewart-Muniz | October 28, 2015 05:30PM

The Southern Pointe community in Plantation (left) and the Water’s Edge at Welleby complex in Sunrise (right)

Affiliates of Fairfield Residential, a California real estate company that specializes in multifamily properties, just paid $88 million for two apartment communities in Broward County.

The sale breaks down to $44.8 million for the Water’s Edge at Welleby Apartments in Sunrise, located at 10901 Northwest 40th Street, and $43.225 million for the Southern Point Apartments in Plantation, at 8080 Northwest 10th Court.

Both are lakeside communities that were built in the 1980s, and together they house 608 rental units on nearly 45 acres of land, according to Broward property records.

They were controlled by an affiliate of the Texas-based Rockpoint Group, a private equity fund that also acts as an investment adviser. The group recently made headlines when it was named as the buyer of Mary Brickell Village in Miami, which traded for $113.5 million.

Broward County property records show Rockpoint was transferred ownership of the two properties from the State of Wisconsin Investment Board, which is responsible for managing the assets of the state’s retirement system.

The board paid only $3.2 million for both communities in 1995 — a price that equates to $5,263 per apartment. Now, it’s raking in a whopping $144,736 per unit. No financing has been recorded for the deal so far.

A 2014 annual report from the investment board said it has roughly $1.02 billion in net real estate investments, which makes up a relatively small portion of the $91.1 billion in the state’s core retirement investment trust fund.

Fairfield recently closed on a major, $265 million multi-state mortgage for its holdings, including two apartment communities in South Florida. Almost $120 million of the financing covers properties in Florida, according to the mortgage document.