Miami-based CFH Group has sold Sunset Palms, a 318-unit Hollywood complex, for $38.5 million.
Brokers Deme Mekras and Elliot Shainberg
Records show Sunset Palms United LLC, a 1031 exchange, bought the property at 7400 Stirling Road. Les Chalet Investments LLC, a CFH affiliate, made $9 million on the deal after paying $29.9 million for the complex, formerly known as the Conquistador Apartments, in May 2015.
MSP Group‘s Deme Mekras and Elliot Shainberg brokered the deal, according to a press release. The sale breaks down to about $121,000 per apartment. “This deal was a true win-win-win where the buyer successfully exchanged into solid South Florida multifamily, the seller realized a significant profit and moved out of product that is older than they prefer to own and Elliot and I are pleased to have played a critical role in putting it together,” Mekras said in the release.
MSP Group declined to name the buyer.
The 14-acre property was developed in 1975. Rents range from $875 for a studio to $1,315 for a two-bedroom apartment, according to CFH’s website. Amenities include a pool and pool deck, tennis courts, a playground, picnic areas and parking.
The seller planned a $2 million upgrade to the property, including a new 3,000-square-foot clubhouse with a 24-hour gym and computer lounge, a renovation of the pool, exterior facade and landscaping additions, according to a January press release on the company’s website. The renovations were slated for the second quarter of this year.
Earlier this year, Berkadia put a portfolio of three South Florida apartment complexes up for sale, including a 174-unit market rate complex in Hollywood.