PALM BEACH—Exclusive and high-priced. Those are among the best words to describe the San Marco at Broken Sound, a 336-unit luxury villa and townhome community that just sold for $80.3 million. The sale price equals $238,988 per unit.
ARA Florida-based principals Hampton Beebe and Avery Klann represented the seller, Chicago, IL-based Capri Capital Partners. ARA managing partners Marc deBaptiste and Richard Donnellan also worked on the deal. Miami-based BC Property Investments acquired the multifamily asset.
The core plus asset is in an affluent infill location in Boca Raton, FL. Boca Raton boasts a diverse economy driven by educational institutions and Fortune 500 companies.
“San Marco is located on the western edge of one of South Florida’s largest office markets, comprised of nearly 7 million square feet of class A office space,” says Beebe. “The location gives San Marco direct access to this deep and diverse job base.”
The 2014 estimated average household income within a one-mile radius of San Marco is 41% higher than Palm Beach County’s average and 48% above the state average. San Marco at Broken Sound is two miles east of Interstate 95 and five miles west of the Florida Turnpike. The multifamily property is located on Military Trail, a major north/south artery with 35,500 vehicles passing by daily.
Built in 1992, the same institutional owners had held San Marco for over 20 years. During this period, the multifamily asset maintained stable, long-term occupancy and rental rates. The property is 96% occupied.
“The Boca Raton submarket is the fastest growing submarket in Palm Beach County and has a current occupancy rate of 95.7%,” says Beebe. “The Palm Beach County rental market has shown a continued growth in occupancy and has a current occupancy rate of 94.8%. Effective rents in the market increased by a year-over-year rate of 4.8% as of the first quarter of 2014.”