Michigan city sells Dearborn Towers for $6.25M

BUYER: Island Way Towers LLC (Richard Paul Beaullieu), Tampa

SELLER: The city of Dearborn

PROPERTY: 223 Island Way, Clearwater

PRICE: $6.25 million

LAW FIRM ON DEED: Shutts & Bowen LLP, Fort Lauderdale

PLANS, DESCRIPTION: Active Tampa Bay-area multifamily investor Richard Beaullieu of Lafayette, La., purchased the 88-unit waterfront Dearborn Towers for $6.25 million.

The price equated to $71,034 per unit and $81 per square foot.

The property featured a private fishing dock, marina, swimming pool and community center.

Kevin Kelleher, Darron Kattan and Bob Goldfinger, all of Franklin Street, handled the transaction, which included representing an unusual seller, the city of Dearborn, Mich.

“It was bought in the late 60s by the mayor of Dearborn after he read that an apartment building in Clearwater was being foreclosed on,” Kelleher says. “He created something of a summer camp for Dearborn residents, who could stay here for part of the year. Obviously, the city has had some financial challenges lately and paying half a million a year to keep it up and running just didn't make sense.”

Built in 1962, the aqua blue, eight-story building needs some aesthetic work, according to Kelleher, but is structurally in good shape.

The new owner ultimately plans to fix up the property and make it condominiums. Kelleher says its unique location makes this plan not just feasible, but logical.

“It's one of the only buildings on the Island Estates that has not been converted,” he says. “Maybe there's one or two others, but there are no other apartment buildings left. Land next to the Dearborn sold this year, and they're going to build condos next door.”

The renovations to the building are expected to be significant, including new windows, interiors, mechanical work, kitchen improvements and additions to the amenities.

Just last month, another Beaullieu company purchased the 184-unit Timberfalls Apartments in Tampa for $2.75 million. His firms also own eight apartments and fractured condominium developments, including the 228-unit Rivertree Landing Apartments, 70-unit Armenia Village Condominiums, 72-unit North Chase Villas Apartments and 232-unit Puritan Place Apartments.