AvalonBay Spends $138M for Luxury Rental in Boca Raton
AvalonBay Spends 8M for Luxury Rental in Boca Raton
AvalonBay Communities, Inc. paid $138 million for the 850 Boca luxury rental community in Boca Raton, FL.
The deal works out to $372,972 per unit for the 370-unit complex at 850 Broken Sound Pky. The seller was a partnership of Praedium Group of New York and CC Residential, the Coral Gables, FL-based developer.
“The original strategy was to build and sell,” said Andy Burnham, chief operating officer of CC Residential. CC is a partnership of Armando Codina and Jim Carr.
The 4-Star community opened in January 2017 and was 85 percent leased at the time of sale, Burnham said. It has 336 apartments and 34 three-story townhomes with two-car garages. The units average 1,093 square feet and monthly rent of $2,171, while the townhomes average 1,736 square feet and $3,857 in rent, according to a listing earlier this year from Cushman & Wakefield.
“It is extremely rare for a large core multifamily asset to become available in Boca Raton,” Cushman’s Robert Given said at the time. “There hasn’t been a property like 850 Boca on the market in this city for 10 years, and it may be another decade before we see a comparable listing.”
The complex is one of three new luxury rentals in The Park at Broken Sound, formerly known as the Arvida Park of Commerce.
The park opened in 1978 and once was home to IBM. It primarily was a business center until the city of Boca Raton changed zoning in 2012 to allow for residential and retail in the area.
Arlington, VA-based AvalonBay (NYSE: AVB), a real estate investment trust, has a portfolio of more than 280 apartment communities nationwide. A spokesman did not return calls for comment.
For more information on the transaction, please see CoStar Comp #4091086.