An ARA Newmark team sold a Coral Springs rental community and received strong appetite from potential buyers, even though it's not your standard property.

Atrium Square has 180 units, smaller than the communities expected to generate heavy interest from institutional investors.

Avery Klann, executive managing director with ARA Newmark, also noted the units' average size is 1,322 square feet, larger than the typical 1,000- to 1,100-square-foot size.

And Atrium Square has a mix of rental options. Most of the units are townhouses, some are one-story apartments, and most units have direct-access garages, a fixture residents more typically find in condominiums rather than rentals, Klann added.

“Many people look at this product more as for-sale product because of the large average unit size and the fact there's garages. You are buying quite a bit of real estate when you have an average unit size of 1,322 square feet and 95 percent of the units have garages,” Klann said.

Klann worked with executive managing director Hampton Beebe, director Jonathan Senn, transaction manager Matthew Scarola and vice chairmen Dick Donnellan and Marc deBaptiste, all in Boca Raton, to represent the seller, the Carroll Organization.

The Atlanta-based real estate investment company sold what was formerly known as ARIUM San Remo at 3400 Coral Springs Drive for $41.5 million to South Florida-based KVR Properties LLC. The deal closed Nov. 3 at a price that breaks down to $230,694 per unit. The property is 293,096 square feet.

The Carroll Organization “created some value by renovating a portion of the units and saw some strong organic rent growth and felt that conditions in the capital markets were favorable for a sale, and they elected to list the property with us and sell it,” Klann said.

Low interest rates also made now a good time for the transaction, he added. ARA Newmark took 30 potential buyers on a property tour and got 19 offers, which was comparable to similar transactions, Klann said.

The 6.7-acre residential community essentially is a townhouse community, yet it's rented instead of owned by residents, Klann said.

“I wouldn't be surprised if someone converted this property to condominiums,” he said.

KVR Properties has no such plan and instead wants to renovate the units by installing new floors, upgrading kitchen appliances and countertops, and renovating the pool and fitness center, according to Klann.

The residential community northwest of Coral Springs Drive and Sample Road is a typical value-add property, meaning investors can upgrade it and as a result increase rents.

“Most buyers look at value-add opportunities and plan on spending $10,000 and $15,000 a unit and look to increase rents from $150 to $300 a month on average,” Klann said, speaking generally rather than about KVR Properties.

Atrium Square is a gated community built in 1995. It's 96 percent occupied. Other amenities include a clubhouse, barbecue grills, dog park and playground.

Throughout South Florida, including Coral Springs, there's a pent-up appetite for multifamily product, Klann said.

“Coral Springs is almost 100 percent built-out,” Klann said. “It's very difficult to build there, especially multifamily product.”

An ARA Newmark team sold a Coral Springs rental community and received strong appetite from potential buyers, even though it's not your standard property.

Atrium Square has 180 units, smaller than the communities expected to generate heavy interest from institutional investors.

Avery Klann, executive managing director with ARA Newmark, also noted the units' average size is 1,322 square feet, larger than the typical 1,000- to 1,100-square-foot size.

And Atrium Square has a mix of rental options. Most of the units are townhouses, some are one-story apartments, and most units have direct-access garages, a fixture residents more typically find in condominiums rather than rentals, Klann added.

“Many people look at this product more as for-sale product because of the large average unit size and the fact there's garages. You are buying quite a bit of real estate when you have an average unit size of 1,322 square feet and 95 percent of the units have garages,” Klann said.

Klann worked with executive managing director Hampton Beebe, director Jonathan Senn, transaction manager Matthew Scarola and vice chairmen Dick Donnellan and Marc deBaptiste, all in Boca Raton, to represent the seller, the Carroll Organization.

The Atlanta-based real estate investment company sold what was formerly known as ARIUM San Remo at 3400 Coral Springs Drive for $41.5 million to South Florida-based KVR Properties LLC. The deal closed Nov. 3 at a price that breaks down to $230,694 per unit. The property is 293,096 square feet.

The Carroll Organization “created some value by renovating a portion of the units and saw some strong organic rent growth and felt that conditions in the capital markets were favorable for a sale, and they elected to list the property with us and sell it,” Klann said.

Low interest rates also made now a good time for the transaction, he added. ARA Newmark took 30 potential buyers on a property tour and got 19 offers, which was comparable to similar transactions, Klann said.

The 6.7-acre residential community essentially is a townhouse community, yet it's rented instead of owned by residents, Klann said.

“I wouldn't be surprised if someone converted this property to condominiums,” he said.

KVR Properties has no such plan and instead wants to renovate the units by installing new floors, upgrading kitchen appliances and countertops, and renovating the pool and fitness center, according to Klann.

The residential community northwest of Coral Springs Drive and Sample Road is a typical value-add property, meaning investors can upgrade it and as a result increase rents.

“Most buyers look at value-add opportunities and plan on spending $10,000 and $15,000 a unit and look to increase rents from $150 to $300 a month on average,” Klann said, speaking generally rather than about KVR Properties.

Atrium Square is a gated community built in 1995. It's 96 percent occupied. Other amenities include a clubhouse, barbecue grills, dog park and playground.

Throughout South Florida, including Coral Springs, there's a pent-up appetite for multifamily product, Klann said.

“Coral Springs is almost 100 percent built-out,” Klann said. “It's very difficult to build there, especially multifamily product.”