BRT Apartments to Sell South Florida Rental for $97.3M
BRT Apartments to Sell South Florida Rental for .3M
BRT Apartments Corp. says it has a contract to sell its 4-Star Palm Beach Gardens, FL apartment complex for $97.3 million, or approximately $180,000 per unit.
The Great Neck, NY-based real estate investment trust expects the deal for The Fountains to close in the second quarter, subject to customary closing conditions. The buyer was not disclosed.
The property last traded for $53.98 million ($100,000 /unit) in 2012, according to public records.
The 542-unit multifamily complex, built in 1970 and renovated in 2005, is at 4120 Union Square Blvd. The vacancy rate is 4.2 percent, while the average asking rent per unit is $1,399.
BRT estimates that its share of the gain on the sale will be about $20.5 million. It said the 542-unit complex generated $9.2 million in revenue and $7.9 million in expenses during the fiscal year that ended Sept. 30.
“We anticipate that in the short-term, we will be able to recycle the proceeds from this sale into accretive acquisition opportunities,” said Jeffrey A. Gould, CEO and president of BRT.
BRT (NYSE: BRT) has 50 multifamily properties in 13 states, primarily in the Southeast, according to its website. The REIT said it started its multifamily portfolio in 2012. BRT owns and operates the properties, mostly through joint ventures in which it holds an 80 percent equity interest.