The Real Deal Miami

Burke Leighton pays $11M for apartments in Miami, North Miami Beach

Buildings are part of bigger portfolio that Grand Island Square bought for $28M last year

May 16, 2016 12:00PM
By Katherine Kallergis

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Aerial view of Grand Island Square

Aerial view of Grand Island Square

New York-based Burke Leighton has acquired two apartment buildings in Miami and North Miami Beach for $11 million, or $100,000 per unit. 

Deme Mekras and Elliot Shainberg

Brokers Deme Mekras and Elliot Shainberg

Grand Island Square, a North Lauderdale-based partnership led by Kris Persaud and Eyal Mehaber, sold the two buildings at 1495 Northeast 167th Street and 2350 Northeast 173rd Street, also known as Grand Island 2 and Grand Island 3.

The properties are part of a bigger portfolio for which Grand Island Square paid $28 million in May of last year. The partnership then renovated the buildings and raised rents to market-rate, according to a press release.

The first, a 60-unit building at 1495 Northeast 167th Street, was built in 1959 and last sold for $5 million in May. Those units all face the interior courtyard and pool deck.

The second, a 50-unit, 59,400-square-foot building at 2350 Northeast 173rd Street in North Miami Beach, was built in 1969 and last sold for $6.5 million. The property includes a pool deck and balconies, as well. It’s located about one block west of Marina Palms Yacht Club & Residences, which when completed at the end of this year will have two 25-story towers and a combined 468 units.

MSP Group’s Deme Mekras and Elliot Shainberg brokered the deal between Grand Island Square and Burke Leighton.

“Burke Leighton is a shrewd investor aggressively building a South Florida portfolio and Grand Island Square is shedding assets that don’t fit their portfolio,” Shainberg said in the release. Mekras said the seller offloaded the two buildings because they are “smaller than their target acquisitions.”

The deal, which closed on Friday, marks a loss of $500,000 for the Grand Island Square partnership.

Burke Leighton has thousands of apartments in Brooklyn and Manhattan, and has more than 10 South Florida properties in its portfolio. Earlier this year, the firm spent $10.8 million on the newly developed Victorian, a six-story apartment building in Little Havana.