Archstone Invests $42M in Vintage Boca Multifamily

BOCA RATON, FL-Archstone just snapped up a 252-unit multifamily apartment community in Palm Beach County from AEW Management. Archstone paid about $42 million for Vinings at Town Center, which will take on the name Archstone Boca Town Center.

The Boca Raton-based ARA sales team of Avery Klann, Hampton Beebe, and Marc deBaptiste represented AEW Capital Management in the sale. AEW sold the property on behalf of one of its institutional clients.

“We continue to be committed to the continual improvement of our portfolio of apartment communities in the nation’s best cities,” R. Scot Sellers, Archstone’s CEO, said in a statement. “Archstone Boca Town Center will be an excellent addition to our portfolio and our strategically located communities in Southeast Florida.”

Located at 5881 Town Bay Drive, Archstone Boca Town Center will see a major renovation of its amenities and units during the next 12 months. The fitness center and several common areas will be upgraded, while the units will be fitted with brand-new kitchens and bathrooms.

“Multifamily investment in Boca Raton continues to be extremely attractive,” Avery Klann, lead broker on the transaction, said in a statement. “Archstone Boca Town Center has been institutionally owned for more than 23 years, which has helped the property maintain stabilized long-term occupancy and premium rental rates.”

A strategic location doesn’t hurt, either. Archstone Boca Town Center is adjacent to the Town Center at Boca Raton, which features more than 220 upscale retailers and restaurants. Nordstrom, Neiman Marcus, Bloomingdale’s and Saks Fifth Avenue anchor the 1.75-million-square-foot mall. The site is also a short drive to Office Depot’s new global headquarters, as well as other employers.

As the year closes, multifamily was clearly the bright spot of 2011—and Adam Lustig, a partner in the law firm of Bilzin Sumberg, tells GlobeSt.com easy cash is making all the difference. With Freddie Mac and Fannie Mae on the scene, he says there is access to “relatively cheap money” and terms are favorable.

“As you look at the commercial real estate market and you look at the other sectors, the one thing that multifamily has right now that other sectors is the availability of financing,” Lustig says. “We are seeing more deals getting done in other commercial real estate sectors, but the financing is still extremely challenging and limited. There’s not a large and consistent source like you have with Fannie and Freddie.”