South Florida’s multifamily market — especially Broward County — continues to outperform other local real estate sectors when it comes to pricey deals.
A Canadian investor has acquired the Parrot’s Landing rental apartment complex in North Lauderdale for $56.3 million, which nearly matches the 2005 sale price for the community. Dedicated (Parrots Landing) LP, a Toronto company managed by Brass Enterprises, on Oct. 26 bought the 560-unit complex, according to Broward County records. The county recorded the sale of the 7575-7900 Hampton Blvd. complex on Thursday.
The buyer obtained a $38 million mortgage from SunLife Assurance Co. of Canada for the acquisition. Brass is a private real estate investment company with a primary focus on the multifamily sector.
Brass vice president Mark Zolty said on Friday that Parrot’s Landing was acquired by the Dedicated Capital Investments arm of the company. It is the third Broward County apartment complex Brass has purchased since March, when it bought Oasis in Oakland Park and Camelot West in Wilton Manors.
“We like the market,” Zolty said.
Parrot’s Landing was particularly attractive to company because it offered the “ability to purchase a large amount of units in one shot,” he said. “Every deal is a story. We like the story there.”
Zolty confirmed that the companyis eyeing Florida for future apartment purchases.
“We probably have another deal or two in us for next year,” he said.
The seller of Parrot’s Landing is 7900 Hampton Blvd LLC, a joint venture of Dallas real estate investment trust Behringer Harvard and Denver investor Grand Peaks Properties. Behringer owned 90 percent of the complex, with Grand Peaks holding a 10 percent stake and property management responsibilities, according to Behringer.
The companies paid $42 million for the complex in September 2010. That price was a substantial discount from the $57 million the previous owner, Principal Global Financial, paid in 2005. Principal also spent $8.4 million to renovate 408 of the 560 units at the complex.
Messages left with a Behringer spokeswoman were not returned. James Phelps, president of Grand Peaks Property Management, did not return calls seeking comment.
‘Very Smart Group’
The garden-style Parrot’s Landing was built in two phases in 1987 and 1997 on nearly 30 acres. It is fully leased, according to CoStar Group. Monthly rents range from a low of $871 for one-bedroom apartments to a high of $1,370 for a three-bedroom unit. Brass is a “very smart group,” according to multifamily broker Robert Given, executive vice president at CBRE. Given was not involved in the Parrot’s Landing sale, but he is familiar with the company and has met with Brass executives several times.
“I’m sure this will not be their last acquisition down here,” Given said. “We are having a lot of Canadian-based interest in assets, not only in South Florida, but all throughout Florida.”
Parrot’s Landing is one of several Broward multifamily properties to change hands for more than $40 million since June.
In the same week in late August, the Winner’s Circle Apartments in Parkland was sold for $64.7 million and the Blue Isle Apartments in Margate traded for $40 million. Other recent Broward sales include the $42 million sale of the Lakes at Pembroke in Pembroke Pines on July 31 and the $51.67 million sale of Pinebrook Pointe, a 394-unit property in Margate, on June 13.
“South Florida overall is heavily targeted by institutional investors,” Given said. “There are not very many opportunities in Miami-Dade County because so much of [the rental inventory] has been converted to condos. Broward has been the sweetheart because it is the center of the mega-region.”