Wellington, Florida, home to the National Polo Center, is known as the Winter Equestrian Capital of the World.
While that reputation as a horse hub and its ranking as one of the 50 best places in America to live for families by Fortune are certainly draws for housing providers, Wellington has one for apartment investors: There isn’t very much apartment supply in the town.
“We're largely seeing more housing developments and higher-end options being built in Wellington,” said Drew Spitler, managing director and partner of New York City-based apartment owner The Dermot Co. “With apartment complexes themselves, there is some supply in the area, but it’s not actually in Wellington.”
With limited competition in the area, The Quaye at Wellington, a 350-unit property built in 2017, drew plenty of interest when it came on the market, according to Spitler. In September, The Dermot Co. secured the property from Stockbridge Capital Group for $144 million, according to Commercial Observer.
The acquisition came three years after The Dermot Co. acquired The Seabourn in Palm Beach County, a class A townhome and apartment community in Boynton Beach, which was built by the same developer.
Upgrades planned
The Quaye at Wellington sits close to shopping, dining options, parks and nature preserves. The property is comprised of 30% one-bedroom apartments and 70% two-, three- and four-bedroom townhomes with direct-access attached garages and individual EV charging stations.
“We like the idea of the apartment complexes that have townhomes with direct access garages and provide a little bit more living space than maybe a traditional apartment complex and apartment building,” Spitler said.
The Quaye at Wellington features wood-style flooring, energy-saving stainless steel appliances and smart-home technology. Its amenities include a resort-style swimming pool with an outdoor summer kitchen and seating area.
The property has a 24-hour fitness center, dedicated spinning and yoga spaces, a multi-sport simulator, a virtual fitness studio, an outdoor dog park, an indoor pet spa and a 24/7 on-site community mini-market.
The Dermot Co. plans to update the signage and branding at the property and add to the amenity spaces, including installing health club-quality machines in the fitness center.
“One of the biggest things that we do is a new gym renovation,” Spitler said. “I think people appreciate that. If you can provide these amenities on the same level as maybe going to an actual gym, that delivers value to your tenants.”
Over the last four years, The Dermot Co. has added 1,800 units in Florida. It is actively looking for more properties, but Spitler said the company will be “picky.”
“I think it's going to be tough,” Spitler said. “We have seen that the market is already getting more and more competitive each month. So I think a lot of investors who have been sitting on the sideline are going to jump back in.”
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