(Crystal Proenza is associate editor of Real EstateFlorida.)
PLANTATION, FL-A local residential parcel totaling 43.7 acres has been acquired by a development entity led by Atlanta-based Trammell Crow Residential and an undisclosed institutional partner advised by JP Morgan Asset Management. The buyer paid $25 million for the land at the northeast quadrant of Interstate 595 and NW 136th Avenue in Broward County.
Colorado-based Affordable Residential Communities decided to sell the property, which previously operated as a mobile home park, after it was damaged by Hurricane Wilma in 2005, says Brad Capas, a multifamily specialist with Cushman & Wakefield of Florida. The site is across the street from a new Ikea furniture store and a few blocks from the Sawgrass Mills retail complex.
"When companies of the stature of Trammell Crow and JP Morgan acquire a site of this magnitude and size, despite all of the backdrop of the negative press that the economy and South Florida is getting, it makes a statement about their confidence in the South Florida market," Capas tells GlobeSt.com. He and fellow multifamily broker Rosendo Caveiro facilitated the transaction.
Trammell Crow plans to develop a 481-unit rental community called Alexan Plantation on the site that will consist of garden apartments and townhouses. The company created the Alexan brand to provide unique, upscale apartment communities at competitive rates, according to TCR's website. According to Capas, the price paid for the parcel equates to $581,395 per acre or $51,975 per proposed unit.
Trammell Crow is currently renting apartments at an Alexan-brand development in Panama City Beach, FL, where rents ranging from $885 for one bedroom to $1,215 for a three-bedroom, two-bath apartment. According to the most recent CB Richard Ellis Florida Market Perspective report, apartment rents in the state are holding steady, while occupancy has only slipped marginally over the last 12 months, while Cushman & Wakefield research puts South Florida's average apartment occupancy rate at 95%.
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