Lynd Living has flipped a multifamily community in Margate, Florida, just eight months after acquiring it. The San Antonio-based real estate firm has sold Aqua Villa for $66.5 million, $15.5 million than what it paid on March 17, to Atlanta-based CARROLL. According to CEO David Lynd, the decision to sell was not easy, but the time was right to maximize value due to the hot real estate market in South Florida.
“Values in South Florida have really skyrocketed since the pandemic due to intense in-migration from other states,” said Lynd. “Rents have jumped by over 20% since our acquisition, and we achieved our projected five-year net proceeds for investors and partners after just eight months. We always keep our investors’ goals in mind for every deal.”
The acquisition of the community almost didn’t happen because of the COVID-19 pandemic. Lynd Living was originally supposed to acquire the 280-unit garden-style community, which had been named Lakes at Margate, in March 2020, but its equity partner pulled out of the deal as the nation started shutting down. The firm persevered with the seller and closed a year later, marking the first time it used crowd-sourced equity to help fund an acquisition.
“Had we given up when we lost our original partner in 2020, we would have never gotten the property and wouldn’t be where we are today,” said Constantine Scurtis, president of Lynd Acquisitions Group. "As it stands, our investors are getting an incredible rate of return on their money over a much shorter time period than anyone anticipated.”
The community, which was built in 1987, features one-, two-, and three-bedroom units with wood-plank floors, custom white cabinetry, and energy-efficient appliances. Amenities include two pools, a clubhouse, a fitness studio, and a cybercafe. Lynd spent $4 million on renovations and upgrades, including the addition of chef’s kitchens to the three-bedroom units.
“Our signature chef’s kitchens have become a major draw everywhere we have put them in,” said Lynd. “In Margate, we were able to increase rents by as much as $800 for these special units, thus generating a lot of additional value for the asset.”
Newmark’s Hampton Beebe was the listing agent.