"We own Tuscany in nearby Boynton Beach, and we're running out of waterfront property," Richard Schaffer, VP of the South Florida affiliate of New York-based Tarragon Realty Investors, tells GlobeSt.com. Schaffer represented the buyer in this transaction. Robert Given, VP, Jay H. Massirman, EVP, and Todd Weinstein, associate in the Miami office of CB Richard Ellis, represented the Boston office of New York-based AEW Capital Management in selling the asset on behalf of an institutional client.

"Condo developers are swarming across South Florida, paying a premium to acquire and transform rental properties into condos," Given says. "As condo converters do not plan to operate the apartments for a steady income, they are not concerned with capitalization rates. Therefore, condo converters are often willing to pay a premium for properties over that of a conventional apartment investor," he explains.

James Helman, EVP of the Fort Lauderdale Tarragon office, tells GlobeSt.com the property's one-, two- and three-bedroom units and two- and three-bedroom townhouses range in size from about 900 sf to 1,365 sf, not including balcony space. He declined to disclose anticipated prices, citing Florida law, which prohibits such revelations until all of the paperwork is submitted. On condition of anonymity, brokers familiar with the area and the property tell GlobeSt.com asking prices will probably exceed $300 per sf.

The property was completed in 1995 and consists of 16 two- and three-story buildings. Given says 30% of the units are one-bedroom residences; 54% have two bedrooms and 16% have three bedrooms. Property amenities include a gated entryway, fitness facility, 50 garages, 64 carports, racquetball and tennis courts, a pool, spa and exercise trail. Schaffer adds, "we also have 40 boat slips," and says Tarragon is renovating the club house.