Sofia Sagastegui of Green Tree Commercial, Inc. and Randy North of Capital Commercial Real Estate Group, Inc. just closed on a bulk condo deal in West Broward County, Florida.
The purchasers paid $17 million for 154 apartments.
This was an involved and unique deal, It's a rental project except the actual ownership is a condominium.
For tenants and anyone else who drives onto the property they see an apartment community, and it's operated like one, but in documents on the Broward County property appraiser's office's website, the property is owned as individual units.
Over time, the owner acquired 154 units and then operated the units as apartments but owned the units as condos.
The property was built in the 1970's and contain a mix of two-bedroom two-baths units, one-bedroom, one bath, and one-bedroom one and a half baths.
The deal gives the new owner the opportunity to complete control over the condominium association. Having arranged the sale of over 10 fractured condo projects consisting of over 1000 condominiums, this transaction was the most enjoyable during our 65 years brokering commercial income property due to the extremely knowledgeable owner and buyer.
The buyers obtained a well-located, desirable property with considerable upside potential in one of Florida's fastest-growing metros. Our analysis shows that current in-place rents are well below comparable properties in the area.
The property is located in West Broward County, close to major highways and a few minutes to the Mall and the Turnpike, and just minutes to Fort Lauderdale-Hollywood International airport.
This fractured condo is a multifamily property in which the majority of the units are operated as rental apartments, but the remaining units are individually owned condos.
The contract and closing had some interesting issues. "Our seller continued to acquire individual condo units while we were under contract for the units it currently owned. The contract provided for a mechanism for the new units to be added to the bulk of the units in the original purchase contract. The legal team had to work quickly and strategically to complete individual unit closings up until the date of closing and add these new units to the sale.