This Week's South Florida Deal Sheet: Broward Apartments Trade For $73M
Miami-based Eden Multifamily and Los Angeles-based Cypress Equity Investments sold a recently completed, 212-unit apartment complex in Tamarac for $73M, according to a release.
The buyer of the development at 8601 West McNab Road was an entity controlled by CaraCo Group of Cos., a Canadian developer that has its U.S. headquarters in Deerfield Beach.
The buyer financed the sale with a $50M mortgage from Global Investment Fund, care of New York-based Sound Point Capital, the South Florida Business Journal reported.
The Broward County development, called Eden West, was completed this summer and has units from one to three bedrooms ranging from 598 SF to 1,388 SF.
Eden and Cypress acquired the 6.2-acre development site in 2019 for $3.4M, property records indicate. The property was previously a shopping center and office building. Construction began in 2021 and was financed through a $24M loan from Wells Fargo, SFBJ reported at the time.
SALES
Nationwide Realty Investors, an affiliate of Nationwide Mutual Insurance Co., sold a 36-unit apartment building in Palm Beach Shores for $58.5M, Commercial Observer reported. JBS Capital Group, which has offices in Miami, New York and Baltimore, and Palm Beach Gardens-based Johnston Group purchased the development on 2.7 acres at 176 Lake Drive.
New York-based S3 Capital provided the buyers with a $60M acquisition and construction loan for the property, which is called Cannonsport and includes 54 marina slips. Dansker Capital Group in Connecticut arranged the debt.
Nationwide initially completed the 97K SF development in 2008 as condos but converted it to apartments amid the Global Financial Crisis. Johnston Group CEO Ryan Johnston told CO that the complex would remain rentals for now but that the buyers were “currently exploring all of our options.”
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Arroyo Capital, a California-based land banking firm, paid $40M for 37 acres in Boca Raton where Toll Brothers has proposed 70 single-family homes, The Real Deal reported. The two parcels were sold by Westside Farms, which acquired them for $200K in 1982. One of the parcels hosts a 32K SF packing plant and 3K SF cold storage facility.
Arroyo has an option agreement to sell the properties at 9905 Clint Moore Road to Pennsylvania-based Toll Brothers. The homebuilder submitted its plans for the site to the city of Boca Raton last year.
FINANCING
An affiliate of New York developer Horizon Group secured a $48M construction loan to build the Residences at NoMi in North Miami, the SFBJ reported. Israel-based Bank Hapoalim provided the funding, acting as an administrative agent for a group of lenders.
Horizon Group is planning to build 175 apartments on the 2-acre site at 950 Northeast 124th St. Apartments would be available to residents who are at least 55 years old, with 10 units for occupiers earning a maximum of 80% of the area median income and 30 units restricted at 120% of AMI. Miami-Dade County’s AMI is $74.7K.
Horizon Group paid $8.5M for the site in May 2022, property records indicate. The sellers were Miami-based Blue Road and Trise Development, which has offices in New York and Miami.
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An affiliate of Boca Raton-based Amzak Capital Management provided a $20M construction loan to Prestige Cos. for a 114-unit apartment complex in Hialeah, TRD reported. Market Station North at 1001 Southeast 11th St. is planned to include a pair of three-story buildings with one- and two-bedroom apartments.
Miami Lakes-based Prestige Cos. purchased the 2-acre development site last year for $5.8M. A 14K SF industrial facility was on the site, but the Hialeah City Council rezoned it as a transit-oriented development district and approved Prestige’s development plan this year. The site is near the Hialeah Market Tri-Rail station.
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PGIM Real Estate provided a $75M, fixed-rate refinancing loan for the MiLine Miami mixed-use complex southwest of Miami in Glenvar Heights, according to a release. The loan covers the first phase of the development at 6970 Southwest 40th St., which includes 338 apartments, 4,600 SF of retail space and a 456-space parking garage. The three-phase project is being developed by AEW Capital Management and ZOM Living and is slated to have a total of 975 apartments and 23K SF of retail space.
CONSTRUCTION AND DEVELOPMENT
Hallandale Beach-based PPG Development and New York-based L3C Capital Partners launched condo sales at Bay Harbor Towers, with prices starting at $1.9M, according to a release. The development at 10143 East Bay Harbor Drive will include 44 condos ranging from two to four bedrooms in two eight-story buildings connected by a skybridge.
Bay Harbor Towers was designed by three South Florida firms, with Kobi Karp as architect, interior design from Steven G. and landscape architecture from Clad. Fortune Development Sales is the exclusive listing agent for the property, which includes a private marina and boat dock slips. It is expected to break ground in spring 2024.
PPG and L3C acquired a condo building on the site last year, paying a combined $32M for the property’s 30 units, the SFBJ reported at the time. An affiliate of New York-based MSD Partners provided a $70M mortgage to the joint venture after the sales that is being used to finance construction, according to the release.
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Related Cos. announced the launch of sales at its first luxury condo project in Florida this month, according to a release. South Flagler House will include 108 units across two 28-story towers at 1355 South Flagler Drive in West Palm Beach. Condos will range from two to five bedrooms with prices from $5.9M to $72.5M.
The project was designed by Robert A.M. Stern Architects with interiors from Pembrooke & Ives, both out of New York. Suzanne Frisbie from Frisbie Palm Beach will lead sales along with Corcoran Sunshine Marketing Group. Construction is slated to begin next year.
Amenities include a pickleball court, sports lounge, golf simulator, several pools, private dining rooms and coworking spaces. Children’s amenities include a teens lounge, makerspace and an outdoor sprinkler garden.
Related purchased the 3-acre site in August for $195M from Frisbie Group and Hines, which had originally proposed the development. The $5.9M starting price for condos is below the $7.5M floor Related had announced at the time of the acquisition.
PEOPLE
Greg Becker joined Colliers as an associate managing director for West Palm Beach and the Caribbean, according to a release. He joins the valuation and advisory services team at Colliers after serving as senior managing director and Caribbean market leader at Newmark and as an executive vice president at CBRE. Becker, who has more than 30 years of experience, will be focused on leading the firm’s growth in the industrial real estate market throughout the Southeast.
