BBX Capital Real Estate Buys Half of Altman Cos. Ahead of Full Acquisition
A $22.7 million deal is the first of three steps for BBX Capital Real Estate to acquire multifamily developer The Altman Cos.
October 30, 2018 at 12:19 PM
3 minute read
BBX Capital Real Estate is buying a half interest in The Altman Cos. development company as a first step in a full takeover.
BBX Capital Real Estate, a division of publicly traded BBX Capital Corp. based in Fort Lauderdale, is paying $22.7 million for 50 percent of Altman Cos., the Boca Raton-based multifamily developer that also has built condominiums and townhouses. This deal is set to close by year's end.
The acquisition plan calls for a 40 percent purchase in four years for $9.4 million and an option to buy the remaining 10 percent for $2.4 million.
BBX Capital Real Estate focuses on real estate management, acquisition and development.
The transactions are seen as a natural outgrowth of the long-running partnership between the two companies and succession planning by Joel Altman, Altman Cos. chairman and CEO.
“It takes a company that was privately owned by myself and had a finite life to it equal to my life,” said Altman, 75, “and then turns it into an infinite company owned by a public company, BBX Capital Real Estate.”
Altman worked with BBX Capital Real Estate president Seth Wise and BBX Capital chairman and CEO Alan Levan on the 50 percent deal.
The first transaction and the full acquisition would mean Altman Cos. would continue its work under BBX Capital Real Estate's guidance.
“We are buying it and basically saying, 'Guys, keep doing what you have been doing, and we will be cheering you on.' It's a very natural, seamless acquisition, and we really see it as business as usual,” Wise said.
Wise and Altman said there won't be staff cuts.
On the contrary, Altman said this is good news for his staff.
“The team that's in place has been there for almost 20 years. Some of the people have been there for almost 30 years. This gives them an opportunity to continue on and doing what they do and maintaining their position. They don't have to go out and look for a new job,” he said.
The 50 percent interest stake covers Altman Development Co., Altman Management Co. and Altman-Glenewinkel Construction as well as half the interest in the manager of eight multifamily projects.
Altman-Glenewinkel Construction is 40 percent owned by Gary Glenewinkel, president and CEO of Fort Lauderdale-based Glenewinkel Construction Co., and 60 percent by Joel Altman, who is selling his interest over time, he said.
As for the eight multifamily projects, they are seven apartment complexes in Florida and one in Texas developed by a partnership between Altman Cos., which is the general partner in all cases, and limited partners such as pension funds, Altman said. BBX is acquiring an interest in Altman Cos' general partnership.
All are Altis projects — Altman's multifamily brand — and include the finished 398-unit Altis Boca Raton, 314-unit Altis Bonterra in Hialeah and 280-unit Altis Pembroke Gardens.
Altman Cos. and BBX Capital Real Estate have partnered on other projects, including the finished 321-unit Altis at Kendall Square.
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