The Real Deal Miami

Fairfield continues SoFla suburban apartment boom with $27M trade

Deal comes out to 54 percent value jump for Fairfield

July 22, 2016 08:45AM
By Sean Stewart-Muniz

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Midora at Woodmont (Inset: Fairfield Residential CEO Greg Pinkalla)

Midora at Woodmont (Inset: Fairfield Residential CEO Greg Pinkalla)

South Florida’s suburban apartment rally rolls on.

Fairfield Residential, a major owner and developer of apartment communities in the United States, just sold one of its rental complexes in Tamarac for $27.2 million.

The community is called Midora at Woodmont, with an address of 7790 Northwest 78th Avenue near Tamarac’s Woodmont Country Club.

An apartment's kitchen at the community

An apartment’s kitchen at the community

Built in 1988, the community has 199 apartments and sits on about 13 acres of land fronting a canal. Monthly rents at the complex range from $1,110 for a one-bedroom apartment to $1,675 for a two-bedroom pad. Amenities include a fitness center, playground, community pool, tennis court and a jogging path.

Fairfield, which has some 60,000 units in its national portfolio, first bought the Midora four years ago for $17.6 million, according to Broward County records. The purchase broke down to about $88,442 per unit.

Now, the apartment builder has sold its community to a pair of companies for $136,683 per square foot — an increase in value of about 54 percent, highlighting the kinds of investment returns possible in South Florida’s more suburban cities.

The community pool

The community pool

County records show the buyers are two companies called Selwyn Midora Owner and We Midora Owner, which are both controlled by Jeffrey Weiskopf of New York’s White Eagle Property Group. The ownership split has 65 percent control to Selwyn Midora and the remaining 35 percent to We Midora. White Eagle is an investment firm that buys apartment communities at or below market value, according to its website, with its current portfolio sitting at about 7,000 units in New York, the Southeastern U.S. and the Mid-Atlantic.

Weiskopf financed his company’s purchase with a $21 million loan from Capital One’s multifamily finance division.

In just the first half of this year, investors and developers traded $4 billion worth of South Florida rental properties, many of which are located in suburban areas. Industry players say their potential growth in value and steady cash flow make them attractive assets, compared to properties in much riskier markets like downtown Miami.