The Real Deal Miami

Canyon, Citi scoop up Tamarac apartment complex for $33M

Seller was an affiliate of Starwood Capital Group

August 02, 2016 11:15AM
By Sean Stewart-Muniz

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Woodland Meadows (Inset: Canyon Partners Co-Chairman Mitch Julis)

Woodland Meadows (Inset: Canyon Partners Co-Chairman Mitch Julis)

South Florida’s suburban apartment boom continues.

A joint venture between Canyon Partners Real Estate and Citi Community Capital just purchased a Tamarac rental community for $33 million.

County records show the deal covers Woodland Meadows, a low-rise apartment community that was built in 1973 with 296 units at 5760-5943 Northwest 57th Court.

Units at the complex range from 860 square feet for one bedroom to 1,300 square feet and three bedrooms. Rents start at $1,067 per month and max out at $2,523.

The seller was an affiliate of Starwood Capital Group, a private investment firm headquartered in the wealthy town of Greenwich, Connecticut.

Starwood had purchased Woodland Meadows in 2006 for $27.4 million, or about $92,567 per unit, according to county records. Now, the company has raked in $11,486 per unit, marking a 20 percent gain.

Canyon and Citi made their purchase through an investment vehicle titled the Canyon Multifamily Impact Fund II, which was launched in November 2015. According to an announcement from the companies, this is the fund’s second purchase since its inception, bringing its total portfolio to 1,026 units.

The next step, according to Canyon, is to start a capital improvement plan for Woodland Meadows with “targeted physical upgrades.” The partners have also hired Miami-based Monument Real Estate Services to manage the property.

Woodland Meadows’ recent sale is part of a multifamily boom in South Florida, with developers and investors spreading their dollars out to the suburbs in search of favorable deals.

In the first half of 2016, more than $4 billion worth of rental communities traded hands in South Florida alone, with much of that activity taking place outside of heavily urbanized areas.