
Purchased in 1967 for $1.1 million, Dearborn sold its Florida apartment complex for $6.25 million.
Nearly two years after putting its Florida apartment building for retirees on the sales block, Dearborn has inked a deal to sell the 52-year old property for $6.25 million.
The sale of the apartment building, when final, will close a chapter in Dearborn’s history books.
It was the late Dearborn Mayor Orville Hubbard who led the charge to purchase the eight-story, 88-unit property back in 1967 for $1.1 million.
The purchase of the building, which Hubbard renamed Dearborn Towers, was billed as the first attempt by a U.S. city to own property outside the state.
The opportunity for Dearborn retirees to rent in Florida, at costs below market rates, for some or part of the year made Dearborn Towers immensely popular in the 1960s through the 1990s, and added to Dearborn’s reputation of providing one-of-a-kind services for its residents. A one mile walk from the beach, the complex included a heated pool, organized poker nights and other activities.
As times changed, so did Dearborn residents’ ideas about retirement, and the traditionally long waiting list to rent an apartment in Dearborn Towers disappeared.
The city put the Dearborn Towers on the sales block in May 2010, announcing it in a press release that it was seeking buyers as a way to ease the city’s mounting financial challenges. The decision to put the Dearborn Towers on the sales block came nearly three years after voters approved a 2007 ballot measure to give elected city officials permission to do so.
Last week at a special meeting, the Dearborn city council approved the sale. But this time the city did not issue a press release that the Dearborn Towers had been sold.
In 2007, the 52-year-old Florida property was valued at between $8 million and $8.3 million, according to one informal appraisal. Another appraisal in March 2008 put the value of property at about $5.6 million.
So $6.25 million is a good price, considering today’s real estate market. The city in September 2010 said it had an offer for the apartments for $6.7 million but that deal never materialized.
The new winning bid was from Alchemy Management, via a broker the city hired in February. After brokerage fees, Dearborn will net just over $6 million from the sale when the deal closes, which is expected in about a month.
The apartment building is located near Clearwater Beach, which Dearborn says has consistently been named one of the best beaches in the country. The property sits on a 2-acre waterfront site on Clearwater Bay, and is near the Gulf of Mexico and downtown Clearwater. It has a private fishing dock, marina and pool.
Constructed in 1960, the apartment building has 40, one-bedroom and 48 two-bedroom units.