New York Investor Buys Sunrise Senior Housing for $30 Million
Fairstead, already an affordable housing owner in South Florida, plans major renovation of the complex it purchased for $239,837 per unit.
A Sunrise affordable multifamily community for seniors was sold for $29.5 million to a New York-based investor that plans to overhaul of the complex.
Fairstead, which also is a developer, owner and operator focusing on affordable and mixed-income housing, bought Federation Sunrise Apartments from Jewish Federation of Broward County affiliate Federation Housing Inc.
The transaction closed May 29, and the deer was posted in Broward County property records Tuesday.
Federation Sunrise is Section 8 housing, a U.S. Department of Housing and Urban Development program giving subsidies to private landlords renting units to low-income tenants.
Federation Sunrise has 123 units totaling 84,336 square feet in a single building, according to county records. The purchase price breaks down to $239,837 per unit. The complex at 5020 N. Nob Hill Road south of Commercial Boulevard was built in 1991 on 3.7 acres.
Fairstead plans a multimillion-dollar renovation covering new kitchens, baths, floors, windows, air conditioning, a community room and landscaping.
Federation Sunrise will remain as affordable housing for at least another three decades, according to a news release.
“It’s particularly vital to ensure quality affordable housing for our country’s senior population, which is what makes our purchase and rehabilitation of Federation Sunrise Apartments so important,” Will Blodgett, Fairstead co-founder and partner in New York, said in a statement. “This transaction will protect the development’s affordable status for 30 years, and our planned renovations will address the unique needs and ensure a great quality of life for all the residents of this community.”
South Florida is plagued by an affordable housing shortage with multiple studies showing many renters are cost-burdened by paying more than a third of their income on housing, while some residents are severely cost-burdened, paying as much as half of their income on housing.
A Florida International University Metropolitan Center study issued last year showed the number of Broward residents who are cost-burdened kept growing in 2018. High demand allowed landlords to push up rents, wage increases haven’t kept pace with rent hikes and new affordable housing development has been limited. The study concluded 147,313 households were cost-burdened and 77,677 households were severely cost-burdened.
The coronavirus pandemic put an even bigger strain on renters who were furloughed or laid off. The state and federal government have imposed temporary moratoriums on evictions and foreclosures.
Fairstead financed its purchase by issuing federal low-income housing tax credits and tax-exempt bonds from the Housing Finance Authority of Broward County.
The company already owns affordable housing apartments in the region as it’s affiliated with the purchaser of Federation Gardens building at 10911 Southwest 112th Ave. in suburban Kendall and Federation Towers at 757 West Ave. in Miami Beach. Federation Gardens Preservation LP bought the properties last November for a combined $60.5 million from the Greater Miami Jewish Federation.
“Our purchase of the Federation Sunrise Apartments complex also showcases Fairstead’s long-term belief in the South Florida market as we continue to grow our portfolio within the region,” Blodgett said.
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