Condo Converter Purchases 259 Units in Florida for $33M

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Condo Converter Purchases 259 Units in Florida for $33M November 22, 2005 By Jennie Bell, Southeastern Correspondent America First Apartment Investors Inc. has closed on its sale of the 259-unit St. Andrews at Westwood for a reported $33 million. The REIT sold the Orlando rental property to The Cornerstone Group, a Florida-based condominium converter. "We wanted to realize some of the value of what condo converters were willing to pay," America First CEO Jack Cassidy told CPN. Of the bids his company received for the property, he added, the majority were from converters offering premiums well above those possible for rental operators. America First now hopes to reinvest the proceeds from the transaction into new acquisitions through a 1031 exchange. It opted for the tax-exempt strategy, Cassidy explained, because of the $20 million gain received through the St. Andrews sale. Although it still owns apartment communities in Florida, America First is currently looking toward more affordable markets in the Southeast and Midwest. "We still consider Florida an attractive market for rental units," Cassidy said, "but pricing for assets there is just too high right now." The 15-building St. Andrews garden complex was 95 percent occupied at the time of sale. It is located at 11500 Westwood Blvd. in Orlando and was built in 1986. Apartment Realty Advisors negotiated the deal.

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