URDANG, the real estate investment manager and part of BNY Mellon, and its joint venture partner Priderock Capital Partners have sold The Heritage at Boca Raton, a four-building, 248-unit ultra luxury rental complex. URDANG and Priderock acquired the property in March 2010.
URDANG, the real estate investment manager and part of BNY Mellon, and its joint venture partner Priderock Capital Partners, LLC today announced they have completed the sale of The Heritage at Boca Raton, a four-building, 248-unit ultra luxury rental complex.
URDANG and Priderock announced the acquisition of the property in March 2010, as well as their plans to convert it from a distressed unfinished condominium complex into high-end rental units. URDANG made its portion of the acquisition through Urdang Value-Added Fund II, L.P., a private real estate closed-end fund, closed to new investors, managed by Urdang Capital Management Inc. The complex formerly had been named the “Eden Condominiums.”
The redevelopment of the property by URDANG and Priderock included buying back 27 previously sold condominium units, collapsing the condominium association, and completing construction. This entailed finishing the clubhouse, two of the apartment buildings, the garages and the pool, all of which were completed by February 2011. Six months later, the property’s occupancy exceeded 90 percent, and it was listed for sale in September 2011.
“By completing the redevelopment and converting the property to luxury rental apartments, we created substantial value,” said David Rabin, managing director, private real estate at Urdang Capital Management. “The complex was well positioned when demand increased for well-located, high-quality apartments from core investors.”
The completed property includes high-end amenities such as a 14,500-square-foot clubhouse, state-of the-art golf simulator, private movie theater/Wii video game room, resort-style pool and spa, cyber cafe with Wi-Fi, dry sauna, massage room, tanning salon, billiard room, indoor sports/racquetball court and a bocce ball court. The interiors were finished with luxury items such as custom Italian cabinets, granite countertops, stainless steel appliances, oversized soaking tubs, glass-enclosed showers, expansive tiled balconies and generous walk-in closets.
“Our team worked tirelessly to re-position a deeply distressed condominium project for a successful execution as luxury rental apartments,” said George Banks, co-founder of Priderock. “Through precise execution of our business plan, we were able to complete construction of the project and stabilize the property through an effective leasing program.”
Terms of the transaction, which closed in November, were not disclosed.
Notes to Editors:
Priderock Capital Partners, LLC was founded by George Banks and David Khoury to manage and seek above-average risk adjusted returns for third-party institutional and high net worth investors and to improve the local communities in which they acquire assets, through thorough due diligence and creative asset management. PRCP’s investment goal is to generate exceptional returns by identifying true value-added investment opportunities where PRCP can generate its targeted returns by acquiring assets at an attractive basis while utilizing conservative operating assumptions. PRCP focuses on creating value by identifying complicated and/or distressed situations and by mitigating the project risks through thorough and exhaustive due diligence and bringing high quality human resources to focus on each specific issue.
URDANG was founded in 1987 with an exclusive focus on institutional investment grade real estate. URDANG offers a variety of strategies and products, managing approximately $2.5 billion in public real estate securities through Urdang Securities Management, Inc. and approximately $3.0 billion (gross) in debt and private equity real estate investments through Urdang Capital Management, Inc. for institutional investors and high net worth individuals throughout global markets and across public and private capital sectors. URDANG’s research-driven process combines top down economic analysis and market/country selection with bottom up underwriting of properties, companies and management teams to seek high, risk-adjusted returns. It is one of the investment boutiques of BNY Mellon Asset Management.
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