South Florida’s Largest Multi-Family Deals of 2021
The multifamily market has boomed this year as an onslaught of demand has driven rents up to torrid rates, and investors have taken notice.
Much of the demand came from out-of-state transplants attracted by the region’s early reopening, no state income tax, and the ability to work remotely in the Sunshine State rather than the the northeast or other regions.
As rents skyrocketed, prices for the wave of investment sales also rose. The biggest transaction this year was the sale for $744 million of a portfolio of apartments in Broward County. Yet even the biggest transaction for a single apartment complex this year – the $371 million sale of The Palmer Dadeland – far exceeded 2020’s single asset sale of $180 million for the Emera complex. Port Royale and adjacent lands in Fort Lauderdale.
Here’s a breakdown of the best multi-family deals of 2021:
Grant Cardone bets big on apartments with $744 million purchase
Cardone, a motivational speaker who encourages businesses to grow through his 10X platform, purchased a portfolio of four properties spanning approximately 1,688 units in Broward County.
He bought the eight-building Las Olas Walk with 456 units and the 25-story Four West Las Olas with 260 units, both near downtown Fort Lauderdale. Cardone also purchased the 387-unit Colonnade Residences in Sunrise and the 585-unit San Michele in Weston, both garden-style communities.
All have been rebranded as Cardone’s 10X brand.
The deal comes down to $438,389 per apartment.
The Golden Beach-based investor borrowed $550 million in senior debt for the acquisitions and paid the $194 million down payment in cash, he said.
After closing the deal this month, Cardone began raising a target of $200 million from accredited and non-accredited investors. It targets retail investors, which is in line with its strategy of opening the door for the “little guy” to enter a market dominated by institutions and family offices, Cardone said.
Starwood Property Trust buys The Palmer Dadeland for $371 million
Starwood Property Trust has purchased The Palmer Dadeland, a pair of 25-story buildings at 8215 and 8217 Southwest 72nd Avenue for $371.1 million.
The buyer is a real estate investment trust affiliated with Barry Sternlicht’s Starwood Capital Group, based in Miami Beach.
The seller was Boca Raton-based Mill Creek Residential, which developed one of the buildings in 2018 and the second in 2020.
The deal for the 844-unit complex near Dadeland Mall comes down to $439,692 per apartment.
Starwood Property Trust’s website lists a portfolio of over $17 billion in commercial, residential and infrastructure lending, as well as the investment and maintenance and real estate segments.
AECOM-Canyon Partners sells The Landmark South to Doral for $255 million
Los Angeles-based AECOM-Canyon Partners has sold the Landmark South complex at 6075 Northwest 105th Court in Doral for $255 million.
New York-based JSB Capital Group, successor to private equity and alternative investment firm GMF Capital, was the buyer.
The three eight-story Landmarks have 631 units. It has one- to three-bedroom units, ranging from 680 square feet to 1,445 square feet.
Monthly rents are $2,209 to $3,665, according to Apartments.com.
The deal comes down to $404,120 per apartment.
Cortland buys apartment complex in Uptown Boca for $230 million
Atlanta-based Cortland paid $230 million for the newly built apartment community that is part of the Uptown Boca mixed-use development.
Giles Capital Group, Rosemurgy Properties, Schmier Property Group and Wheelock Street Capital were the sellers.
The seven-building complex was formerly called The Residences at Uptown Boca, but was renamed Cortland Uptown Boca after the agreement. It spans 465 units and was 99% leased when the purchase closed in August.
The deal comes down to $504,386 per apartment.
The garden-style development includes one- to four-bedroom apartments, with monthly rents ranging from $2,326 to $5,331, according to the community’s website.
The 38-acre Uptown Boca has 179,000 square feet of retail space, which was not part of the apartment sale.
AIR Communities buys Pembroke Pines apartment complex for $223 million
AIR Communities, a spin-off of real estate investment trust Aimco, has purchased the City Center on 7th complex in Pembroke Pines for $222.7 million.
Harbor Group International has sold the garden-style complex at 10170 Southwest Seventh Street.
Downtown, 7th, has 12 mid-rise buildings and 28 townhouse buildings with a total of 700 units.
It has one- to three-bedroom units, with monthly rents ranging from $1,974 to $3,750, according to Apartments.com. AIR Communities is the property manager.
The deal comes down to $318,071 per apartment.
SOURCE: TRD analysis of brokerage data, as provided by Colliers International, press clippings and market reports.