Where Are the Value-Add Deals? Away from the Ocean
The market for value-add multifamily in South Florida doesn't get nearly as much attention as glitzy developments near the ocean, but it's just as hot, Pensam Capital partner Mike Stein tells us. The company, which owns, operates and has investments in about 15,000 units nationwide, recently closed on the 210-unit Viera Plantation in Plantation, a 1980-vintage apartment property that Mike says has good enough bones to be a prime candidate for repositioning.
One reason is that it has large units—averaging 1k SF with most units having two bedrooms and two baths—something that's a little harder to come by in newer developments. Pensam plans a number of renovations to the property, including a new amenity package, revamped landscaping, and the removal of its mansard roof (which is the architectural equivalent of bell bottoms). The property's on 10 acres, which is large enough for eventual expansion, though Mike says the focus now is improvements. Currently it's 97% occupied.
