Investment Overview

Marcus & Millichap, as exclusive listing agent, is excited to bring to market Anchor Bay Apartments, a very rare portfolio of seven buildings situated on three corners of the intersection of Miami Road and Southeast 21st Street in the highly sought-after Harbordale submarket of Fort Lauderdale, Florida. The portfolio was acquired by the current owner over the past 13 years and is being offered for sale with incredible 3.49 percent fixed rate assumable financing with over seven years remaining. The Harbordale submarket is located east of Federal Highway (US 1), between SE 13th Street and SE 24th Street (Marina Boulevard) and spans approximately 10 blocks east to the Intracoastal Waterway. Located in this submarket are Port Everglades and the Broward County Convention Center, two of the most highly trafficked destinations in the County. The subject property sits in the southwestern portion of the submarket, sandwiched between the affluent Rio Vista neighborhood and Port Everglades, and walking distance to downtown Fort Lauderdale, Broward Health Medical Center, 17th Street Causeway, and Harbordale Elementary School. The neighborhood is predominantly residential, with Federal Highway (US-1) one block to the west and lined with many office, retail, and restaurant buildings. The portfolio is comprised of seven buildings with six folio numbers, spread out on over 1.5 acres of land. Four of the buildings are one-story and three are two-story walk-up; all constructed of concrete block with pitched or flat roofs between the years 1948 and 1975. The buildings offer a desirable combined unit mix of 11 studios, 24 one-bedroom, 10 two-bedroom, and four three-bedroom apartments. The current owner operates the property as 49 individual rental apartments. The Broward County Property Appraiser reflects the portfolio as a total of 44 units. Five three-bedroom apartments were converted into five two-bedrooms and five studios. These five studios do not have electric meters and their electricity is paid for by the five two-bedroom residents. There is an on-site office with two rooms and a bathroom at the property which was created by converting unit 2101-1 from a one-bedroom and one-bathroom unit to a studio and office, which share electricity and is paid for by the office. The roof for building 2025 is approximately 15 years old. The roofs for buildings 2105, 2012, 2016, and 2020 are approximately 10 years old. The roof for building 2101 is approximately three years old. Building 2025 has had the 40 and 10-year recertification. Building 2105 has had the 40-year certification. Property amenities include fully gated buildings with wood or concrete perimeter walls, many huge, landscaped courtyards and open greenspace, 52 surface parking spaces and one private garage, some brick paver parking lots and walkways, private swimming pool with sundeck, picnic table and picnic areas, a fountain, and three onsite laundry facilities with property owned machines. Apartment amenities include ceramic tile or faux wood vinyl flooring, mostly central air-conditioning and some mini-splits or wall units, most have a separate hot-water heater, some with dishwasher, built-in microwave, ceiling fans and vaulted ceilings, and many have been renovated and upgraded. Three apartments have individual washer/dryer units. All apartments, except for five studios, are separately metered for electricity, telephone, and cable, while water and trash removal are included in the rent. Fort Lauderdale has experienced an incredible resurgence over the past few years, with new class A, high-rise residential, hotel and office buildings being developed throughout downtown. With thousands of new residential units currently under construction or already approved, downtown Fort Lauderdale is rapidly becoming a top live, work and play destination for young professionals as well as those interested in urban living. Restaurants and shops are thriving from the influx of people and real estate values continue to climb. Despite the large supply of new rental apartments entering the market and competition for renters, Anchor Bay Apartments will be the benefactor of this rapid growth. Located just south of downtown, Anchor Bay Apartments rents are far below the new class A rents and provide a more affordable alternative, while only being a few blocks to the south. Fort Lauderdale’s double-digit residential population growth over the past decade is largely due to the increasing assortment of housing choices, amenities and attractions that make it a highly desirable option for residents. Anchor Bay Apartments benefits from the concentrated workforce of surrounding companies. One of the key rental demand drivers is the strengthening downtown Fort Lauderdale office market and the long-term positive outlook for the area as fast-growing businesses move into the market and/or expand their operations. Most of this new employment base are “Millennials” who prefer to rent in Fort Lauderdale’s urban core. Understanding the trends of the regional office and employment market and the related job growth patterns are critical to understanding the rent growth and occupancy potential for apartments in that market. Anchor Bay Apartments provides an investor the opportunity to increase revenue through the expiration of below-market leases and continued apartment upgrades, as well as taking full advantage of the projected aggressive rent growth associated with the very positive multifamily trends occurring in the Fort Lauderdale metropolitan area. With impressive job growth forecasts and one of the best occupancy trends in the nation, the demand for apartments should continue to increase, creating a very compelling investment environment for the Property.