TIAA closes $114M deal for Fort Lauderdale apartments

Neighborhood is booming with new development

Apr.April 19, 2016 10:30 AM

Financial services giant TIAA just closed its $114.4 million purchase of the Edge at Flagler Village, a newly built apartment complex in one of Fort Lauderdale’s hottest neighborhoods.

The deal, recorded in county records Monday, includes the 332-unit apartment complex at 475-479 North Federal Highway. Rents in the community start at $1,730 for a 648-square-foot studio, and range up to $3,355 for a three-bedroom unit.

Edge at Flagler Village was built by an affiliate of the Morgan Group, a multifamily builder based out of Houston, Texas. County records show Morgan paid $11.5 million for the 3.34 acres where it built Edge in 2012. At the time, the land was vacant.

Amenities for the Edge include bike racks, concierge services, clubhouse and fitness center, a gated dog park, a community pool and an integrated parking garage. The complex is also smoke free.

Now, less than a year after Morgan completed its project, the company has sold it to TIAA for a whopping $344,578 per unit. So far, no financing has been recorded with the deal.

TIAA, formerly known as TIAA-CREF, is a Fortune 100 company that manages pensions for academic workers. The company is also a heavyweight when it comes to its real estate holdings: in South Florida, the firm has stakes in huge developments like the still-expanding Waterford at Blue Lagoon business park, as well as the 701 Brickell office tower, which it recently refinanced with a $184 million loan.

And while this deal is done, Morgan is gearing up to build another apartment project nearby. The developer paid $17 million for a Flagler Village development site and plans to build a seven-story complex with 350 rental units.

Flagler Village is becoming a hotspot for new projects in Fort Lauderdale as developers hope to cash in on the neighborhood’s hip reputation. The Related Group, better known for its luxury condos in Miami, built and sold its Manor at Flagler Village complex last year for an eye-popping $149 million.

Jaime Sturgis, head of brokerage Metro 1’s offices in Broward, said during a The Real Deal panel Thursday that the neighborhood is poised to boom, partially because it’s only a few blocks away from the upcoming All Aboard Florida station.

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