AvalonBay pays $138M for Boca apartment complex

Codina-Carr partnership sold apartments for $373K each at 850 Boca

December 27, 2017 01:30 PM

850 Boca, From left: Jim Carr, Armando Codina (Credit: Cushman & Wakefield, Codina Partners)

AvalonBay Communities has made its first foray into Florida by buying a new Boca Raton apartment complex from developers Armando Codina, Jim Carr and New York-based Praedium Group for $138 million, property records show.

Residences at Broken Sound LLC sold 850 Boca, a 370-unit development within the Park at Broken Sound, for about $373,000 per apartment. It hit the market in October with a whisper price of between $125 million and $145 million. Cushman & Wakefield’s Robert Given, Zachary Sackley, Troy Ballard and Neal Victor represented the sellers, CC Residential and Praedium. No financing was recorded.

It marks the only Florida investment for AvalonBay, a real estate investment trust based in Arlington, Virginia. The REIT focuses on multifamily developments in major East and West Coast markets, according to its website.

The development, completed this year, includes 336 apartments that average 1,093 square feet with monthly rents of $2,170, or $1.99 per square foot, according to the release. The remaining 34 three-bedroom townhomes average 1,736 square feet with monthly rents of $3,855, or $2.22 per square foot, Cushman previously said. It was 69 percent leased in October.

Amenities include an 11,000-square-foot, two-story clubhouse, fitness center, pool, cabanas, pet spa and dog park. Units feature quartz countertops, stainless steel appliances and wood flooring.

Records show Praedium sold partial ownership of the development site to CC Residential for $14.8 million in 2014, and the developers secured a $62.5 million construction loan from PNC Bank a year later.

Portions of the 700-acre office and industrial park, formerly known as the Arvida Park of Commerce, are being redeveloped into retail and multifamily projects following a change in zoning in 2012. It contains more than 1,000 new apartments, including 850 Boca, as well as Allure Boca Raton from developers Jimmy Tate and Sergio Rok and Altman Development Corp.’s Altis Boca Raton.

The new development will leave intact the park’s 29 acres of lakes and waterways and 28 acres of green space.

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