Fairways of Inverrary, Lauderhill, FL

The Fairways of Inverrary (the “Fairways”) is a 774 unit Homeowner Association (“HOA”) in 4 eight-story and 18 two and three-story buildings, located within a gated community outside of Fort Lauderdale, Florida.  Many apartment units overlook the 17^th and 18^th fairways of the Inverrary Gold and Country Club course, which has been a site for over 20 PGA/LPGA events over the years.

Contained within that HOA are three legal entities, governed by a Master Association:

• Condo I: 162 Units (162 individually owned units)

• Condo II: 210 Units (98 individually owned units, 112 “Fairways” units)

• Phases III & IV: 402 Units  (402 “Fairways” units)

Condo I is independently owned and managed, with the exception of its participation in the Master Association.  Signature Housing Solutions manages Condo II, Phases III & IV, as well as the Master Association. 

The Fairways of Inverrary, LLC acquired the property in November, 2003, at which time they retained Signature Housing Solutions as property management agent.  From November, 2003 through July, 2004, new rentals were put on hold in order to filter out the tenants who were not paying and to begin a $3.3 million improvement program.  The total number of Fairways vacant units climaxed at 335 units (or 65% vacancy rate) by mid-September, 2004.

Commencing in August, 2004, Signature started re-renting the units, bringing vacancies down to 10% at one point.  In June, 2005, an independent party completed an appraisal of the property at $51.4 million or nearly twice the purchase price of $26 million in November, 2003.

On October 25^th, 2005 Hurricane Wilma devastated most of southern Florida, some wind gusts were reported at over 200 miles per hour, becoming the worst hurricane to make landfall in over 50 years.  A hurricane rehabilitation program began immediately, as over 90% of the roofs were completely torn off of the high-rises.  On the morning of October 27^th, TFG contracted Paul Bange Roofing to totally rebuild the high-rise roofs, as well as repair and/or replace the townhouse roofs.  The hurricane rehabilitation cost a total of $5.3 million and was completed on-time and under budget.

The total cost “basis” for this property is the purchase price, the two sets of capital improvements and approximately $1.8 million of operating losses (including debt service) incurred through December 31^st, 2005.  This brings the “all-in” total repaired and upgraded cost position to $71,000 per unit.  In December, 2006, a fully upgraded 2 bedroom/2 bath unit located within the Fairways (specifically, an individually owned unit in Condo II) sold for $170,000.

Signature continues to make the Fairways an attractive place to live (whether it is for rental or purchase) with a full complement of shared community amenities, including two covered parking garages, gated access, swimming pools, saunas, and a fitness center. 

For More Information:

Fairways of Lauderhill web site