Deutsche Bank’s RREEF Management Buys Wellington Rental for $71M
By Julia Echikson August 9, 2021 1:37 pm
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Deutsche Bank (DB) is once again hunting down South Florida multifamily properties.
RREEF Management, a commercial real estate fund based in Chicago and owned by the German bank, acquired a rental community in Wellington, Fla. — the equestrian capital of the world — for $70.6 million, records show.
Waterstone at Wellington, located at 2029 Vinings Circle, holds 222 units, spanning 14 buildings and 11 acres. Some of the world’s premier equestrian venues — The Palm Beach International Equestrian Center and International Polo Club Palm Beach — are situated less than five miles away.
While Wellington now draws such wealthy individuals as heiress Georgina Bloomberg and musician Bruce Springsteen, thanks to its equestrian roots, Waterfront’s apartments are fairly modest. Monthly rents for one- to three-bedroom units range from between $2,085 and $2,900, according to Apartments.com.
The seller, Fairfield Residential, purchased the property for $33 million in 2011, per records. Headquartered in San Diego, Calif., the firm owns and operates 42,700 apartments in 31 markets across the U.S., the company says.
This is RREEF’s third multifamily purchase in South Florida in recent weeks. The Chicago-based fund purchased a 368-unit rental complex in Pembroke Pines for $121.25 million from Brookfield Property Group. It also spent $86.8 million on the 316-unit Vista Lago apartments in West Palm Beach, The Real Deal reported.
South Florida’s multifamily market is heating up. Apartment occupancy in South Florida averaged 96.5 percent during 2021’s second quarter, and average monthly rent reached $1,831 per month — up 7.9 percent from a year earlier, according to data from brokerage Berkadia.
Just last week, Atlanta-based Cortland purchased a Boca Raton rental complex for $230 million, making it South Florida’s most expensive multifamily sale of the year.
A representative for Fairfield did not immediately respond to a request for comment, while a RREEF spokesperson could not be reached for comment.
Julia Echikson can be reached at jechikson@commercialobserver.com.
