AvalonBay Communities has acquired a 270-unit apartment complex in Coconut Creek for $98.3 million, signaling renewed activity in South Florida’s multifamily investment market.
The Arlington, Virginia-based real estate investment trust purchased the property at 5401 Wiles Road from an entity affiliated with Bainbridge Companies and Rockwood Capital, according to public records and Vizzda. The sale price equates to about $364,000 per unit.
The complex, formerly known as Solaire at Coconut Creek, has been renamed Avalon Coconut Creek following the transaction. Built in 2013, it includes 12 three-story buildings on a 15.2-acre site, along with amenities such as a clubhouse, gym, and pool. Apartments range from one to three bedrooms, with monthly rents between $2,200 and $3,100.
Bainbridge and Rockwood had acquired the property for $69 million in 2022. Bainbridge is led by Richard Schechter. Rockwood’s managing partners are David I. Becker and Tyson E. Skillings; the firm operates offices in Los Angeles, San Francisco, and New York.
AvalonBay Communities is led by Benjamin W. Schall and manages nearly 95,000 apartments across the United States as of the end of the first quarter of this year. The company focuses on developing, redeveloping, and acquiring apartment properties.
AvalonBay’s activity in South Florida has been occasional. In 2021, it bought the Avalon Miramar complex for $133 million in Miramar. In September last year, AvalonBay purchased a nine-acre development site in Lake Worth Beach for $16.5 million to build Northlake Promenade Apartments—a planned seven-story building with 279 units next to a Publix-anchored shopping center.
South Florida has seen a modest rise in multifamily investment sales recently after two years of subdued activity due to higher interest rates and tighter lending conditions. Investors have often relied on all-cash deals or loans from Freddie Mac and Fannie Mae instead of traditional bank financing because of more favorable terms (https://therealdeal.com/miami/2024/07/09/apartment-investment-sales-tick-up-in-south-florida-but-remain-far-below-boom-years/).
Records indicate that AvalonBay did not take out a mortgage for its latest purchase in 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 deal this month for the 277-unit 1818 Park tower in Hollywood.
