Wellington Development Pays $36M for Apartment Community

WELLINGTON, FL-Wellington Development LC purchased the 200-unit St. Andrews at the Polo Club apartment community here for $36 million. The price equals $180,000 per unit.In addition, Wellington Development paid $3.2 million, or $15,885 per unit, to State Farm Life Insurance Co. as an early termination fee to pay off the mortgage debt on the property. The seller of the Palm Beach County property was Roberts Realty Investors Inc. and the sale closed July 29.Roberts Realty Investors acquired St. Andrews in November 2001 with a $7.6-million original equity investment in a 1031 tax-deferred exchange after selling its Crestmark apartment community in Douglasville, GA, in July 2001. The company’s equity grew by $6.5 million, or 86%, in the 32-month holding period.The company plans to redeploy the nearly $14.7 million, or $2.03 per share, in net cash proceeds from the sale of St. Andrews into new properties as part of another 1031 tax-deferred exchange. “We believe we can create more appreciation for our shareholders by tax-free trading into new properties rather than paying taxes on the gain,” company CEO Charles S. Roberts says in a statement.