The Real Deal Miami

Fairfield Residential sells Delray rentals to Bainbridge for $102.5M

Delray Verana complex sold for $210k per apartment
By Katherine Kallergis | August 01, 2017 12:00PM

Delray Verana Apartments Inset: Fairfield Residential CEO Greg Pinkalla

South Florida’s multifamily market isn’t showing signs of a slowdown yet.

Fairfield Residential just sold a Delray Beach rental community to a Wellington-based real estate firm for $102.5 million, marking another large investment sale of apartments in the tri-county region.

Palm Beach County property records show San Diego-based Fairfield sold the 488-unit apartment and townhouse-style rental development at 1495 Spring Harbor Drive to Bainbridge Companies affiliate CO-BB Delray LLC. Bainbridge financed the deal with a $66.1 million mortgage from New York Community Bank.

Delray Verana Apartments, built in 1988, traded for $210,000 per unit. The nearly 57-acre complex includes a 16-acre lake, two swimming pools, a 24-hour gym, tennis and racquetball courts, and a renovated clubhouse.

Rents range from $1,275 for a one-bedroom to $2,820 for a three-bedroom unit, according to Apartments.com.

Fairfield acquired the property from Invesco Real Estate in 2013 for $69 million. Less than half of the units were renovated at the time, according to Multi-Housing News.

Fairfield also recently sold a 208-unit complex in Margate for $36.4 million, or about $175,000 per unit. The multifamily developer and asset manager’s portfolio spans 47,000 apartments in 38 markets across the country, according to its website.

Bainbridge manages and owns apartments in Maryland, Virginia, North Carolina, New York and Washington, D.C. Its South Florida portfolio includes properties in Miami, Coral Springs, Jupiter, Palm Beach Gardens, North Miami, Wellington and West Palm Beach.