Rents for complex start at $1,200 per month for one-bedroom unit
LSR Communities, a Texas-based owner and operator of apartment communities, just sold one of its rental complexes in Boca Raton to an affiliate of JRK Property Holdings for $77 million.
County records show the sale is for Arbor Oaks, a 360-unit apartment community at 9703 Arbor Oaks Court.
Described as a luxury community on its website, Arbor Oaks has asking rents ranging between $1,275 and $1,900 per month. Its floor plans come in one-, two- and three-bedroom configurations that are a minimum of 820 square feet.
LSR Communities added Arbor Oaks to its portfolio in 2009 when it paid $39.15 million, or $108,750 per unit for the complex, according to county records.
Now, the company has sold it for nearly double that price at $213,888 per unit. The buyer, JRK Property Holdings, is a real estate investment firm based in Los Angeles. It mainly targets “value-added opportunities” that produce solid cash slow, according to the company’s website.
JRK financed its purchase with a $58.6 million loan from Berkadia Commercial Mortgage.
South Florida’s multifamily investment market was a hot ticket last year, with more than $2.7 billion worth of rental properties trading hands. Industry insiders cited steadily rising rents and growing demand from demographics like millennials as reasons why the multifamily market here is heating up.