AvalonBay Communities has acquired a 270-unit apartment complex in Coconut Creek for $98.3 million, reflecting an increase in multifamily investment sales in South Florida.
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 data from 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 consists of 12 three-story buildings on a 15.2-acre site and includes amenities such as a clubhouse, gym, and pool. Apartment layouts range from one to three bedrooms with monthly rents between $2,200 and $3,100.
Bainbridge and Rockwood’s entity previously bought 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 manages nearly 95,000 apartments nationwide as of the end of the first quarter this year. The company develops, redevelops, and acquires apartment properties but is not a frequent investor or developer in South Florida.
In previous local transactions, AvalonBay paid $133 million for the Avalon Miramar complex in Miramar in 2021. In September last year, it acquired a nine-acre development site in Lake Worth Beach for $16.5 million with plans for Northlake Promenade Apartments—a seven-story building with 279 units next to a Publix-anchored shopping plaza at 374 Northlake Boulevard.
Multifamily investment activity has picked up slightly across South Florida after two years of reduced volume due to higher interest rates, stricter lending standards, and slower rental demand compared to earlier periods of strong activity. Buyers who are still active often use all cash or loans backed by Freddie Mac or Fannie Mae rather than traditional bank financing because those government-backed loans typically offer more favorable terms.
Records indicate that AvalonBay did not record a mortgage when purchasing the Coconut Creek property.
Last month saw Crow Holdings buy the 376-unit 33 West property in Davie for $97.5 million without recording a mortgage either. Some recent deals have also involved stock buyouts; this month Favo Capital purchased the 277-unit 1818 Park tower in Hollywood for $190 million through an all-stock transaction combined with assumption of liabilities.
