Aimco Pays $64M For Flagler Village Dev Site

Aimco acquired a redevelopment site in Fort Lauderdale’s Flagler Village for $64 million that is part of an assemblage for a new mixed-use project

An entity managed by executives of the Denver-based real estate development and investment firm bought the former Searstown Plaza at 901-927 North Federal Highway, according to records. The 5.6-acre site has a 155,760-square-foot retail building completed in 1969 that is slated for demolition. After 66 years, Sears vacated the plaza in January.

The seller, an affiliate of Raanan Katz’s RK Centers, owned the property since 1987, records show. Aimco, led by President and CEO Wes Powell, is also under contract to buy an adjacent 3.4 acres also owned by RK Centers, according to a press release. The total amount for both properties is $100 million, the release states.

Aimco plans to build a 3 million-square-foot mixed-use project with 1,500 apartments on the redevelopment site, which totals 9 acres, the release states. The project will be built in phases.

Aimco is financing the deal with $70 million in cash and $30 million in letters of credit, the release states. As part of the deal, Aimco entered into a short-term, cancelable operating lease with RK Centers to obtain development approvals, and Aimco plans to form a joint venture with RK Centers for the project’s construction.

The RK Centers affiliate entered into six leases with various Amico affiliates, records show. In January, Katz’s firm obtained approval from the city of Fort Lauderdale for 950 multifamily units on the site.

Searstown is roughly two miles north of another mixed-use project totaling 3 million square feet that Aimco is co-developing with New York-based Kushner Companies. In January, the partnership paid $49 million for 4.2 acres that have city approval for a four-tower development with 1,300 apartments, office, retail and a hotel.

Aimco paid $25 million for a 51 percent share of the property, according to an SEC filing.

Contact Francisco Alvarado