NAPLES, FL-New York-based REIT America First Apartment Investors Inc. has sold the 162-unit Belvedere Apartments for $23.2 million to a condo converter. The purchaser of the property was not released.

Jack Cassidy, president and CEO, America First Apartment Investors, tells GlobeSt.com that the company decided to take advantage of the high prices being offered by condo converters. A contributing factor to the sale was the high cost of property insurance in Florida, a result of two bad hurricane seasons in a row. "As was the case last year with our St. Andrews property in Orlando, we recognized a compelling opportunity to realize a substantial gain of this property to a condominium conversion buyer," Cassidy says.

The sale will result in a second quarter gain of $18 million for the company, although the company plans to offset the taxable gains from the sale through acquisition of other multifamily properties through a 1031 exchange. "To the extent possible, we plan to defer the taxable gain relating to this sale through the acquisition of other apartment communities, in accordance with our disciplined approach toward property acquisitions, pursuing only acquisitions with growth potential and consistent with our strategic plan," Cassidy says.

America First Apartment Investors owns 28 multifamily properties in the Southeast and Midwest and one commercial property. Last month, the company announced a regular quarterly dividend of 25 cents per share to be paid July 31 to shareholders of record on June 30.