Owner Expects 34% Return on Pineapple Grove Village Conversion

The new owner, who is converting the community to condos, assigned the marketing to Hollywood-based Kirschner Realty International and anticipates a sell-out "in excess of $79 million," Rick Giles, president of Bainbridge, tells GlobeSt.com. The property "is brand new, so there's no need to do any work on it. The Florida market is still good," he says, "and Downtown Delray is among the best markets in South Florida."

Without disclosing the structure of the partnership with AIG, Giles describes the New York City-based investment firm as "a major equity partner." This is Bainbridge's first partnership with AIG. Lehman Brothers provided financing for the acquisition.

Pineapple Grove is located on about 4.1 acres at 325 NE Second St., blocks from Atlantic Avenue and a half-mile from the beach. "It's close to the best dining and entertainment in South Florida," Giles says, "and it was, and remains, about 74% occupied." On-site amenities include a pool, billiard room, business center and fitness center with weight training equipment.

There are two five-story and four three-story buildings containing an aggregate of 24 townhouse layouts and 136 condo units. Units have top-line appliances and fixtures, including oval soaking tubs, walk-in showers and closets, patios or balconies and one- and two-car attached garages. They range in size from 895 sf to 2,042 sf under air, and the selling prices fall between the $300,000s and $700,000s.