The Real Deal Miami

Investors close $9.9M purchase of Homestead apartment complex

Community's rents are held below market rate as part of 30-year agreement

April 29, 2016 02:15PM
By Sean Stewart-Muniz

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The Phoenix Apartments in Homestead

The Phoenix Apartments in Homestead

A company linked to Stephen Garchik of SJM Capital Partners just completed its $9.9 million purchase of a Homestead apartment complex.

County records show the sale includes the Phoenix Apartments, a rental community with 164 apartments located at 1554 Northeast 8th Street just east of the Harris Field baseball park.

The 11-building community, which was constructed in 1995, was sold by a limited liability company called Riverfront Capital IV. State corporate records show the company is managed by Oscar J. Vila, an attorney based in Coral Gables.

Riverfront bought the complex for $7.45 million, or about $45,426 per unit, in 2012. Now, the company has sold the Phoenix Apartments for $60,365 per unit. Amenities at the community include a pool, playground, washer and drier hookups in the units and a clubhouse.

When the Phoenix Apartments were first built, the developer agreed to reserve its units for affordable housing under the Low Income Housing Tax Credit program.

The terms of that 30-year agreement, which started in 1995, are that 60 percent of the units will be reserved for people who make 60 percent less than the neighborhood’s median income, with the remaining 40 percent going toward people who make less than half that amount.

That means SJM has to wait another nine years before it could adjust the complex’s rents to market rates. The company is also part of a joint-venture that plans on building more than 1 million square feet of self-storage facilities in Miami.