AvalonBay Communities has acquired a 270-unit apartment complex in Coconut Creek for $98.3 million, reflecting a renewed interest in South Florida multifamily investment sales.
The Arlington, Virginia-based company purchased the property at 5401 Wiles Road from an entity associated with Bainbridge Companies and Rockwood Capital. The transaction amounts to about $364,000 per unit, according to public records and data from Vizzda.
Previously known as Solaire at Coconut Creek, the complex has been renamed Avalon Coconut Creek following the acquisition. Built in 2013, the property includes 12 three-story apartment buildings along with amenities such as a clubhouse, gym, and pool on a 15.2-acre site. Apartment options range from one to three bedrooms with monthly rents between $2,200 and $3,100.
Bainbridge and Rockwood’s entity acquired the property for $69 million in 2022. Bainbridge is led by Richard Schechter while Rockwood is managed by David I. Becker and Tyson E. Skillings; Rockwood maintains offices in Los Angeles, San Francisco, and New York.
AvalonBay Communities is led by Benjamin W. Schall and operates as a real estate investment trust focused on multifamily properties. As of the end of the first quarter this year, its portfolio included nearly 95,000 apartments across the United States.
The company has had limited activity as an investor or developer in South Florida apartments but has made notable purchases recently. In 2021, AvalonBay bought Avalon Miramar—a 380-unit complex—for $133 million in Miramar. Last September it paid $16.5 million for a nine-acre development site in Lake Worth Beach where it plans to build Northlake Promenade Apartments adjacent to a Publix-anchored shopping plaza.
Recent months have seen a modest rise in South Florida multifamily investment sales after two years of subdued activity due to higher interest rates, stricter lending standards, and slower rental demand compared to previous years’ strong market conditions. Buyers who continue acquiring apartment projects often use all cash or secure loans through Freddie Mac or Fannie Mae rather than traditional bank financing because these government-backed loans typically offer more favorable terms (https://www.fanniemae.com/about-us/news-media/press-release/fannie-mae-reports-net-income-47-billion-first-quarter-2024).
Public records indicate that AvalonBay did not record a mortgage for its purchase of Avalon Coconut Creek.
Other recent transactions include Crow Holdings’ acquisition last month of the 376-unit 33 West property in Davie for $97.5 million—also without recording a mortgage—and Favo Capital’s all-stock purchase this month of the 277-unit 1818 Park tower in Hollywood for $190 million including assumption of liabilities.
