FORT LAUDERDALE, FL—Behringer Harvard is showing the multifamily sector how to make a profit. The firm just sold Parrot’s Landing, a 560-unit multifamily complex on a 29-acre site in North Lauderdale to a Toronto-based real estate investment company.
Behringer acquired a 90% ownership interest in Parrot’s Landing in September 2010 through a joint venture between Behringer Harvard Opportunity REIT II and Grand Peaks Properties. The sale price two years ago was $42 million, or $75,000 a door.
“Job growth has resumed in South Florida, and the apartment market is benefitting from increased occupancy rates, which is putting upward pressure on rents,” Jason Mattox, COO of Behringer Harvard, tells GlobeSt.com. “Interest rates have remained low and sales volume has picked up as investors were attracted to the strong property performance in Florida’s core markets. These factors created an opportune environment for the marketing of Parrot’s Landing.”
The multifamily complex includes 24 residential buildings on more than 25 acres built in two phases. Phase I has 17 buildings with 408 units. Phase 1 was renovated between 2007 to 2010. Phase II was completed in 1997 and features seven buildings with 152 units. Community amenities include a fitness center, car care center, lighted tennis court, two clubhouses and three pools.
Michael O’Hanlon, CEO Behringer Harvard Opportunity REIT II, called the deal an excellent example of the firm’s investment strategy at work—from acquisition to disposition. Occupancy and net operating income exceeded expectations.
The Boca Raton office of ARA brokered the sale of Parrot’s Landing. Avery Klann, Marc deBaptiste, and Hampton Beebe manage the team.
“Although Parrot’s Landing has benefitted from an $8.4 million interior and exterior renovation program, the buyer will likely be implementing value-add interior enhancements to further boost rents,” notes Klann, lead broker on the deal. “Newer properties in the submarket are achieving rent premiums of $75-$150. New appliances, cabinets, countertops, light fixtures and new molding can provide substantial upside in rental revenue.”