DELRAY BEACH, FL-In its initial expansion into the for-sale real estate market, Birmingham, AL-based Colonial Properties Trust has partnered with Jacksonville-based Montecito Property Co. in the acquisition of Alara Mizner Village, a 275-unit multifamily complex at 15005 Michelangelo Blvd. The transaction price was $55 million or $200,000 a unit. The JV has renamed it Murano, according to a spokesman for Montecito, and is converting it to condos.
The complex was completed in 2002. It is a gated community consisting of 18 two- and three-story residential buildings, a clubhouse, fitness center, indoor racquetball court, pool, spa, lighted tennis court and views of a lake a golf course. Units measure between 830 sf and 1,325 sf, and the selling prices range from $225,000 to $370,000, Carter Langston, Colonial's VP of corporate communications, tells GlobeSt.com.
The property's seller is Glendale, CA-based American Realty Advisors. Sean Williams, VP, and Marc deBaptiste, a principal of Boca Raton-based Apartment Realty Advisors, represented American. Williams says the property's "large concentration of two-story buildings and for-sale quality floor plans enhance its appeal as a condominium."
The Colonial/Montecito JV also acquired St. Andrews at Jensen Beach, a 384-unit multifamily property, which it has renamed Portofino and is converting to condo units priced between $175,000 and $275,000. Langston did not disclose the price paid for this property but confirms the JV's total investment in acquiring and converting the two Florida properties is $120 million. According to published reports, the price tag of the Jensen Beach property was $61.7 million.
In announcing Colonial's expansion into for-sale properties, Tom Lowder, chairman and CEO, says in a statement, "These projects are a natural extension of our diversified business model…it makes sense in today's environment for us to leverage our expertise by including for-sale products in our strategy…however, we intend to approach these projects opportunistically and limit our overall exposure." As of July 26, Colonial owned or managed 47,000 apartment units in addition to its 8.3 million sf of office and 13.5 million sf of retail properties. Montecito specializes in acquiring properties in major metro areas and in repositioning multifamily assets for conversion to condominiums, most recently in Florida, South Carolina and Arizona.
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