COCONUT CREEK, FL-Hillsboro Bay Club Apartments, a 366-unitclass A garden-style multifamily asset, sold for $53.1 million. The12-year-old property is 95% occupied.

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Robert Given, executive vice president in the Miami office of CBRichard Ellis’ Institutional Group, along with team member ZacharySackley, represented the seller, Chicago-based Laramar Group.Seattle-based property investor Kennedy Associates acquired thecomplex in an all-cash deal. The acquisition marks Kennedy’sentrance into the South Florida market.

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“We are seeing a lot of new institutional capital in SouthFlorida as the economic conditions are starting to improve,” Giventells GlobeSt.com. “That’s indicative of what we are going to seethrough the balance of 2011 and 2012. Kenney Associates is anothernew name to add to the list of investors in South Florida.””

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Hillsboro Bay Club features a mix of garden style units withexpansive lake views, gated entry and recently renovated clubhouseand amenity package. But location was a key driver of the deal. InAugust 2010, Coconut Creek was named one of Money Magazine’s top100 US small cities in which to live.

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“This deal demonstrates the institutional market’s generallystrong perception of Broward County’s now and in the future,” Givensays. “We are predicting average rent growth in this area of nearly5% over the next three years thanks to the burn-off of condoinventory, the lack of quality assets, lack of new supply, andeconomy recovery.”

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Brad Capas, a senior director in Cushman & Wakefield’s Miamioffice, tells GlobeSt.com that Hillsboro Bay Club Apartmentstypifies the properties investors are hunting in today’s realestate market. Multifamily housing like Hillsboro Bay Club are inhigh demand and spurring a downward influence on cap rates, hesays.

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“There’s momentum in the market,” Capas says. “The generalthinking among investors that are buying today is that rents arebouncing along the bottom and are poised to increase significantlyin the next 12-24 months. That’s part of the reason cap rates anddemand are so strong. Property owners are seriously consideringselling into this environment, because if interest rates go up thepremium they are getting today may be diluted somewhat byincreasing interest rates.”

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