Tarragon South, Shefaor Pay $41M for 285-Unit Complex

AVENTURA, FL-Tarragon South Development Corp., a recently formed division of real estate investor and developer Tarragon Corp., and Shefaor Development Group Ltd. purchased Lincoln Pointe Apartments here for a little more than $41 million. The buyers have changes planned for the property that may include rebuilding.A partnership called Admiral’s Port LLC, whose primary partner is the pension fund adviser ASB Holdings, sold the 285-unit Lincoln Pointe Apartments for nearly $143,860 per unit. The project is situated on a peninsula just northwest of the Williams Island Marina on a 9.1-acre waterfront site at 17900 N.E. 31st Court. This is technically Tarragon South Development Corp.’s first purchase.The buyers are considering three primary options for the future of the rental property, according to James M. Cauley Jr., president of Tarragon South Development Corp. One option is to convert all the units to condominiums. Another option is to convert a portion of the units to condos and possibly scrape and build something new; the third option is to scrape all the existing units and build a new project, he says.In any case, the finished product will be reasonably high-density, for-sale housing–condos “and maybe a smattering of townhomes,” he says. “We’re in the process of developing the business plan.”Tarragon South joined with Shefaor Development Group, which was looking for capital for the project, he says. Richard Schaffer, vice president of acquisitions for Tarragon South, put the deal together. Shefaor Development Group Ltd.’s principals are Gilbert Benhamou and Claudio Stivelman. “Our partners put the property under contract before we came along,” he says. “They were introduced to us. They were looking for capital,” Cauley adds.Tarragon South liked this project for several reasons, says Cauley. “First, it’s in the city of Aventura. Number two, being 285 existing apartment units and being located on 9.1 acres gives us multiple opportunities” for future use. He adds, “It’s too preliminary at this time” to say what amount of money could be spent on property improvements or changes.Tarragon South, based in Fort Lauderdale, is also developing Las Olas River House in Downtown Fort Lauderdale, Pine Crest Village in Victoria Park, Tuscany on the Intracoastal in Boynton Beach, Waterstreet at Celebration in Celebration, and Alta Mar in Fort Myers. In addition, the company is developing Cypress Grove in Pompano Beach with Coscan Homes.