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Massachusetts firm pays $56M for Jupiter apartment complexes
Mallards Cove and Shell Trace Apartments sold for about $156,000 per unit
Big ticket multifamily complexes keep trading in South Florida.
Newton, Massachusetts-based Northland Investment Corp. just bought two sister rental communities in Jupiter for $56 million, property records show.
The real estate investment firm financed the deal with a $46.4 million mortgage from CBRE Capital Markets. Records show the mortgage is a Freddie Mac loan.
The communities are called Mallards Cove and Shell Trace Apartments. The properties, located at 6705 Mallards Cove Road, stretch nearly 31 acres and offer about 359 units, meaning the trade breaks down to about $156,000 per unit.
The seller is linked to Rhode Island-based Preston Giuliano Capital Partners. Records show the company is led by Michael Giuliano. The firm bought Shell Trace Apartments, a 119-unit apartment complex, in 2013 for $8.9 million. It acquired the nearly 20-acre Mallards Cove Apartments, a 240-unit community, in 2016 after the condominium was terminated. In a previous 2005 sale, Mallards Cove apartments sold for $19.5 million, records show.
All the apartments, built in the 1980’s, offer one- and two-bedroom floor plans, according to Preston Giuliano Capital Partners’ website. Features include carpet and tile flooring and in-unit washers and dryers. Select apartments offer screened balconies with lake views. Residents have access to a community pool and tennis courts.
Northland Investments bought the complex at a time when the supply of new multifamily inventory is outpacing demand. This year alone, nearly 13,500 new apartments will be delivered in South Florida, marking the fifth most active city in the country for multifamily construction, according to a report from RentCafe.
And rent growth is predicted to slow as the region’s occupancy rate dips. South Florida’s occupancy rate averaged 94.8 percent, down slightly from the previous quarter, according to Berkadia’s second quarter report.
Yet, institutional investors are back to trading large apartment complexes after a slow period in the market. Recent deals in the area include a 340-unit apartment complex in Palm Beach Gardens that was sold by a company tied to Tampa-based Carlyle Investments for $118 million to PGIM Real Estate last month.