Greystar sells Bella Vista at Boca Del Mar, the Centro at Davie, the Stonybrook Apartments near West Palm Beach, and the Savannah Lakes apartments in Boynton Beach to PGIm Real Estate – South Florida Business Journal

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Greystar Real Estate Partners has sold four apartment complexes in Broward and Palm Beach counties to PGIM Real Estate in deals to avoided paying hundreds of thousands of dollars in real estate sales taxes.

Most property sales are executed with deeds, and the sellers pay state, and sometimes county, taxes based on the amount. If a property is deeded between two related entities, such as two subsidiaries of the same company, that transfer is usually exempt from taxes.

In this deal, Greystar amended the corporate records of the four Delaware-based companies that own the South Florida companies. The amendments changed both the names of the companies and switched their managing members to executives with PGIM.

Officials from Charleston, South Carolina-based Greystar didn’t respond to a request for comment.

Greystar announced April 13 that it sold the Bella Vista at Boca Del Mar, the Centro at Davie, the Stonybrook Apartments near West Palm Beach, and the Savannah Lakes apartments in Boynton Beach. The company didn’t disclose the price or the buyer.

Hampton Beebe, Avery Klann and Jonathan Senn from ARA Newmark brokered the deal for Greystar.

“This deal is another great example for the effectiveness of our value-add strategy,” said Kevin Kaberna, executive director of Greystar’s U.S. investment platform. "By leveraging our institutional knowledge and platform we were able to contain expense growth while driving rent growth through renovations to over 1,350 units.”

The 494-unit Centro at Davie, at 2501 S.W. 71st Terrace, changed hands when Greystar amended the name of GSG Residential Sunforest to PR Centro Sunforest Owner. At the same time, Bank of America boosted its mortgage on the property to $64.8 million from $52.4 million.

The Bella Vista, at 6925 Town Harbour Blvd. near Boca Raton, has 392 units. Greystar changed the name of the ownership entity from GSG Residential Bella Vista to PR Bella Vista Owner, now managed by PGIM. Bank of America boosted its mortgage from to $51.9 million $43.3 million.

The 264-unit Stonybrook Apartments, at 10206 Stonehenge Circle, had its name changed from GSG Residential Stonybrook to PR Stonybrook.

Located at 1001 S. Broghton Circle in Boynton Beach, Savannah Lakes had its ownership entity name changed from GSG Residential Savannah lakes to PR Savannah Lakes Owner. Bank of America increased its mortgage from $42.5 million to $51.6 million.

Greystar paid a combined $240 million for the four apartment complexes in 2013. Given the increased value in the multifamily sector in recent years, and the positive statement by Kaberna in the news release, it’s likely that Greystar sold them at a profit. However, state and local coffers won’t share in the benefits of those sales.

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