Transaction Solidifies Mill Creek’s Strategic Presence in Southeast Florida as Part of Its ‘Buy Where We Build’ Strategy
DALLAS – February 28, 2013 – Mill Creek Residential Trust LLC, a national apartment developer, investor, owner and operator, announced that it has acquired Port Royale, a 737-home apartment community situated on the Intercoastal Waterway in Fort Lauderdale, FL. The seller was Equity Residential (NYSE: EQR).
“This acquisition reinforces Mill Creek’s ‘buy where we build’ strategy to expand our presence in markets where we are actively developing,” said Mark Dempsey, executive managing director – Acquisitions. “Modera Port Royale epitomizes this strategy perfectly: acquire a high-quality community with redevelopment and value-add renovation potential in an irreplaceable Southeast Florida location that complements our healthy development pipeline.”
Currently, Mill Creek’s Southeast Florida development portfolio comprises 3,575 homes in lease-up, under development or in planning, including Modera Miramar, a 349-home community in lease-up, Modera Pembroke Pines, a brand-new 422-home development opening this spring, Modera Coral Gables, a 237-home community on track to open this summer and Modera Miramar Town Center, opening this fall with 487 total homes.
“Port Royale represents an excellent opportunity for Mill Creek to achieve attractive risk-adjusted returns through a dual development and renovation strategy in a highly desirable supply-constrained location,” said Wes Dickerson, managing director, Acquisitions. “We will continue to aggressively pursue unique investment opportunities like Port Royale that allow Mill Creek to leverage our core around development, renovation and operating expertise.”
Port Royale encompasses 25 buildings with the redevelopment rights to demolish seven and one 15-story high-rise and one 8-story midrise, adding 555 brand-new waterfront apartment homes giving the community a combined 1,108 homes. In addition, the capital program includes an expansive amenities upgrade and the renovation of the remaining 553 homes that will further solidify the property’s iconic position in the Fort Lauderdale market.
“The redevelopment opportunities inherent in this transaction allow us to execute on one of our core competencies: developing high-quality assets in this vibrant supply-constrained neighborhoods,” said Callum Parrott, senior managing director, Development, Southeast Florida. “We have a solid track record of delivering great product with the amenities and features Florida renters value and we’re exciting to expand this expertise to Port Royale.”
Port Royale includes 554 one- and 183 two-bedroom apartment homes with average square footage of 717 square feet. The redevelopment anticipates the addition of 330 one-bedroom homes, 170 two-bedroom apartment homes and 55 three-bedroom apartment homes as well as two new six- and eight-story parking structures.
The community is an iconic landmark in Broward County situated near major employment centers of Cypress Creek, downtown Fort Lauderdale and Boca Raton representing more than 12 million square feet of office space. Multiple retail and dining options are minutes away, including the 1.4 million square foot Galleria Mall. What’s more, the community’s one-of-a-kind location spanning 36 acres on the Intracoastal Waterway and including 9 nine boat slips and Marina Club provides the ultimate resort-inspired refuge for residents.
Current amenities include two fitness centers, three pools – two of which are on the Intracoastal – covered parking, racquetball and basketball sources, car wash area, barbeque and picnic areas, 24-hour manned security gate and boat docks. Proposed amenities for the redevelopment include hotel-inspired beach entry pool, white sand beach along the Intracoastal, rooftop terrace, tennis courts, putting green and more.