STUART, FL-Harbour Breeze Apartments, a 104-unit,80,978-square-foot property built in 1973, sold for $2.8 million.Located at 1202 SE Palm Beach Board, the bank-owned propertyyielded $34.57 per square foot.

Franklin Street’s managing director Darron Kattan, managingdirector Bob Goldfinger and director Kevin Kelleher representedboth parties in the transaction. The seller, PBE Companies, LLC,owned the foreclosed real estate owned-property for more than ayear and worked to stabilize the asset before marketing and salesefforts. The buyer, Stuart Breezes, LLC, is a private South Floridagroup.

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“At 85% occupancy, we saw a lot of interest from buyers,” Kattantells GlobeSt.com. “We sold the property for the contract price.The buyer got financing at about 4.75% on a cap rate of about7.75%. This sale is an example of greater velocity we’re seeing inmultifamily, even in tertiary markets. When properties are pricedright, it’s a seller’s market.

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PBE Companies made several improvements to Harbour BreezeApartments, which offers one-, two- and three-bedroom units. Theproperty includes a swimming pool, laundry facility, and a sundeckand tiki huts. Units are equipped with walk-in closets, remoldedkitchens and baths, and new tile and carpet.

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Goldfinger tells GlobeSt.com the buyer is betting it can addvalue with further improvements and better management in a sleepymarket where it’s difficult to grow rents. Goldfinger says thebuyer has a vision to up the rents and sell or refinance theproperty in the near- to mid-term.

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“Part of our challenge as apartment brokers and specialistselling is that most of the lenders want all cash,” Goldfingersays. “They don’t want to offer terms—and it’s much harder to getfinancing for tertiary markets and older deals like this one. Plus,agency debt requires a lot of time and banks want fast quick sales.This buyer had a relationship with a lender, which helped them getthe deal done.”

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