Fairstead Buys Fort Lauderdale Affordable Housing Complex for $27M

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Fairstead paid $26.5 million for a Section 8 affordable housing complex in Fort Lauderdale, Fla., with plans to make upgrades, property records show.

Called Lauderhill Point, the property features 177 units at 3144 NW 19th Street. Rental rates are restricted to 60 percent of the area median income and will remain so after the sale, said a representative for the buyer. 

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Fairstead secured a $40 million tax-exempt loan from the Housing Finance Authority of Broward County, which will mature in 20 years, as well as a $550,000 mortgage from Berkadia Commercial Mortgage, which will mature in 17 years, per mortgage documents.

The New York-based investor will renovate the exterior and interior complex, completed in 1974, said the Fairstead spokesperson, who did not provide additional details.

The sale — which equates to about $149,700 per apartment — has more than doubled the value of the 150,483-square-foot property from its previous trade 15 years ago. The seller, New Jersey-based Michaels Organizations, purchased Lauderhill Point for $9.4 million in 2008, according to property records. The property is also listed as Lauderhill Preservation.

Fairstead, led by Jeffrey Goldberg, specializes in affordable housing. Its $7.8 billion portfolio includes about 170 properties across 28 states, per its website. 

Julia Echikson can be reached at jechikson@commercialobserver.com