Shidler sells Fort Lauderdale rental complex for discounted $84M

Shidler Group offloaded a Fort Lauderdale multifamily complex for $84 million, selling the property at a deep discount a year after buying it. 

A joint venture between Boston-based Stratford Management, led by Andrew Gordon, and Boca Raton-based Eastham Capital, led by Matthew Rosenthal, paid $84 million for The Riverland Apartments at 420-432 Southwest 27th Avenue, according to records and Vizzda. The buyer assumed $55.9 million in mortgage debt from First Republic Bank.

The deal breaks down to roughly $304,600 per apartment for the 276-unit rental community. 

Jaret Turkell with Berkadia represented Honolulu-based Shidler Group. The firm is led by Jay Shidler, who years ago was ranked Hawaii’s richest resident. 

In March of last year, Shidler Group paid $108 million for the 11-acre, seven-building property completed in 2021, records show. At the time, Shidler took out an $81 million loan with First Republic Bank. 

The Riverland Apartments is a mix of studio, and one- to three-bedroom apartments with average monthly rents ranging from $1,865 to $3,435, according to Apartments.com.

Turkell declined comment. Shidler Group Managing Partner Kimberly Aquino, who is in charge of the firm’s acquisitions and asset management, did not respond to requests for comment. 

Stratford and Eastham jumped on acquiring Riverland after Rosenthal received a call from Turkell a few months ago, telling him that the property was available for sale, Rosenthal said. Gordon said Shidler asked $90 million for the apartments, and he and Rosenthal countered with $84 million.

“The folks who sold it originally bought with the intent to sell the property quickly, but as a ground lease deal,” Gordon said. “As the market began to turn and interest rates went up, that business plan was not able to move forward.” 

While South Florida’s multifamily market remains strong, rents are not rising at the record pace the region experienced in 2021 and 2022, according to market reports. This year, the average asking rent is expected to hit $2,465 a month, a projected 3.6 percent increase from 2022, according to Berkadia. 

The market may also see fewer new multifamily developments due to higher construction costs and interest rates compared to 2021, according to Lee & Associates. Meanwhile, land prices for development sites in Miami dropped from an average of $39.9 million an acre in the second quarter of last year to $19.3 million an acre in the fourth quarter of last year — another sign the multifamily market is showing signs of softening. 

Gordon and Rosenthal acknowledged that “aggressive rent growth” has subsided, but that South Florida is still in good shape, and that Riverland is well-positioned. “We will still be able to achieve good rents to support our purchase price,” Gordon said. 

“We think [Riverland] is a great property and in a great area,” Rosenthal added. 

Stratford and Eastham are real estate investment firms that focus on multifamily assets, according to both companies’ websites.